Real Estate Financing Basics: A Guide for Investors in Nashville, TN

Real Estate Financing Basics: A Guide for Investors in Nashville, TN

House prices in Nashville are up 11.5% from 2023.

Nashville remains a great option if you're making a real estate investment. The market has steadily increased yearly with no real sign of slowing down. That said, the market has grown to the point that the median listing for a single-family home is $485,000 - significantly higher than the national median.

Today, we'll discuss real estate financing to help you land on your feet in the Nashville market. Keep reading and you'll have practical advice to broaden your investment strategies in 2024.

Get Your Goals Finances in Order

Before you investigate your financing options, you must have a strong knowledge of where your finances stand. Start by looking at your credit score, as this will give you an indication of whether you'll be approved for a loan and how much that loan might be. If your credit score leaves a lot to be desired, spend some time paying down your debts before applying for a loan.

While you're at it, consider your goals for financing. Survey the property market to figure out what kind of investment property you'd like to purchase. From there, you can get a good sense of what it is you'll be applying to receive from the lender.

Going into the process with a strong idea of your goals and where you stand will make navigating the financing process much clearer.

Investment Strategies, Examined

There are a dozen viable real estate investment strategies. It's important to consider a variety of options, especially those outside of traditional banks. Each lender will offer different perks and restrictions, so you need to look at them all and figure out what's best for you.

Outside of a traditional bank loan, some of the main lending options include:

  • Home equity loans
  • Federal Housing Administration loans
  • Hard money lenders
  • Private money lenders
  • P2P lending
  • Cash financing

Make the Right Call for Your Situation

Which of these you choose will depend on your situation. If you've already got equity in a property or portfolio, it may be best to take a loan against that property. When you've built relationships with investors, you can tap into their wealth with private money loans.

FHA loans are great for investors who don't possess great credit scores. Those who do have good credit scores and stable finances, in general, might find the best route to be a traditional bank loan.

Let the state of your finances dictate how you approach financing real estate deals.

Real Estate Financing Made Easy

The time is right to invest in Nashville's real estate market, but prices are already high, and success is never guaranteed. It's in your best interest to approach investing with risk in mind. The right real estate investing strategy can lower your risk.

Use this real estate financing guide to make the right moves. Once you secure a good property, it's up to you to turn it into a moneymaker. With the help of a great property manager, like PMI Middle TN, you can maximize your real estate's ROI.

To learn how our amazing services can make you a better landlord, contact us today.