What is real estate financing?

However, there is no denying that these costs can add up quickly. This is where real estate financing comes in. Real estate financing is a loan that you take out to pay for the purchase of a property. There are different types of real estate loans available, each with its own set of terms and conditions.

How do I finance an investment property?

For an investment property, you'll need additional documentation as well, such as rental agreements and tax information for the investment property and any other properties you own. Calculate your equity in the property. With your principal residence, you can finance as much as 80 or 90 percent of the property's total value.

What is a real estate investment trust (REIT)?

REIT stands for Real Estate Investment Trust which owns, operates, and finances income-generating real estate assets.REITs pool investments from numerous investors just like mutual funds. REIT helps the investors benefit from the growth in the real estate markets without buying, managing, or financing any property by themselves.