Since turnkey properties are move-in ready, it’s easier to finance homes that need substantial repair. Of course, you can certainly purchase a turnkey property with cash, and some established investors do so. However, you can finance a turnkey property through conforming and non-conforming loans.
Here’s what you need to know about getting a conforming loan for a turnkey property:
There are also certain qualifications for getting a conforming loan, as with any loan you get from a lender. What are the qualifications in this case?
You can get a conforming loan at most banks and credit unions, along with other lenders across the nation that might have more competitive terms and flexibility.
There are a few other types of loans for turnkey properties: multifamily loans, portfolio loans, and apartment loans.
Most of our turnkey properties here in Memphis are not multifamily or apartments, so you wouldn’t be searching for those types of loans. Those are best suited for those scenarios where you’ll have multiple units or multiple families occupying the property.
Now that you understand the differences between the various loan types for turnkey properties there are still some important steps to consider as you get ready to take the leap into real estate investment.
If you think you’re ready to start investing in turnkey income properties, then reach out to us! We’re an experienced turnkey investment group that will always keep your best interests in mind. We cultivate a healthy inventory of properties and will help you determine which ones are a good fit to meet your goals.