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Common Real Estate Investment Terms You Should Know

Lab Coat Agents

You’ll come across words like net operating income and hard money loan as you learn more about real estate investment. The capitalization rate, often known as the cap rate, is the ratio of an investment property’s net operating income to its capital cost or current market value.

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3 Alternative Home Loan Options for People with Bad Credit

Rent, Buy & Sell

They simply guarantee the loan by approving and ensuring banks and financial institutions. VA loans generally have the lowest interest rates on the market and do not require monthly mortgage insurance (unlike an FHA loan). Keep in mind the following: It’s possible to get a VA loan without a down payment.

Loans 98
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Real Estate Loans for Investors: Types and Requirements

Marco Santarelli

Disadvantages: Strict eligibility criteria, such as good credit, steady income, and a minimum down payment of 20% The loan amount is based on the property's appraised value, which may limit the amount of financing available to investors. These loans are often used for short-term financing or for borrowers with poor credit scores.