Flow Funds Through

Flow Funds Through

Flow Funds Through

There are times when real estate investors want or need to increase the income generated by properties in their portfolios. It could be that increases in taxes, regulatory fees, or maintenance are cutting into the cash flow. Or it could be that an investor wants to take advantage of an opportunity to expand the portfolio with a property that can bring in greater profits.

One challenge for many investors is how to obtain financing. Applying for a sizeable loan may not be viable these days when banks seem reluctant to lend large amounts of money to anyone other than the “perfect” borrower who has high credit scores, a flawless credit history, and reliable income and assets. Selling a property could be an alternative way to obtain cash, but in today’s market this may take a long time and may not bring in a sum that satisfies the investor.

Investors should not overlook an important source of funds: the money devoted to paying the mortgages on property they already own. In other words, paying off a mortgage early may be an attractive alternative or supplement to conventional mortgage financing.