Average consumers can get involved with investment properties too
One area of the housing market which has generally been strong for the last few years - even as others took longer periods of time to recover - was investment. With prices and rates so low, many entities got heavily involved in scooping up low-cost properties for various reasons. However, the perception at the time - which persists to this day - was that investment purchases are really only the realm of the rich, or financial institutions, and that doesn't have to be the case.
Average consumers, with middling incomes and debts of their own, have been able to get into the housing market through the investment game, largely by purchasing low-cost multi-family units and turning them into rental properties, according to a report from the Boston legal firm Lieberman Law Office. This can often be done in the same way that a person buys a home for themselves: Put together some savings, minimize spending and outstanding balances, and apply for a mortgage. When approved, the new owners can begin using the rents paid each month by the tenants of these buildings to pay down the balances and increase equity, which in turn can be used to purchase more properties.
A word of caution
However, those who begin doing this should keep in mind that as individuals, there are certain liabilities they may face when getting heavily involved in the investment market in this way, the report said. For this reason, it might be wise to look into the positives and negatives of starting a limited liability corporation that would help to mitigate risk in this regard, and potentially put these new buyers in a better position to succeed as they seek to expand their involvement in the investment market.
Consumers who think they might be able to get involved with the investment market in the near future should try to keep in mind that they can research rates on the Poli Mortgage Group's website, 24 hours a day and seven days a week, without having to provide any personal information at all. When it comes time for them to buy, they will also be able to speak directly with a Loan Officer, all they'll have to do is simply fill out a Contact Us form on the website or call 866-353-7654, and a representative will get back to them shortly.