1. They Finance Properties

An investment loan is a type of loan that is used to finance an investment property. Investment loans can be used to purchase property, renovate an existing property, or refinance debt on an investment property.

2. They're Short-Term

Investment loans are typically short-term loans with higher interest rates than traditional mortgages. This is because investment properties are considered to be a higher risk than primary residences. As such, lenders will charge higher interest rates to offset the risks associated with investment loans.

3. They Offer Many Benefits

There are several benefits to taking out an investment loan. One major advantage is leverage. When you take out an investment loan, you can purchase a property with less money down. This allows you to leverage your investment and potentially increase your return on investment. This is a great opportunity, especially if you're looking to purchase several properties down the line. Another significant benefit involves taxes. Interest paid on investment loans is tax deductible. This can help offset the costs of owning an investment property.

The other big advantage is an increased reach. When you use investment loans, you can enhance your investment power. You can continue buying more and more property as you grow; in fact, you can keep purchasing more property as you go, building your net worth. Eventually, you'll have all the property paid off. On the other hand, if you had to rely on your own funds for property investment, you likely wouldn't be able to accomplish as many purchases.

4. You Need a Good Interest Rate 

An investment loan may be a good option for you if you're looking to purchase an investment property, if you have a good credit score and can qualify for a loan with a favorable interest rate, or if you're comfortable with the risks associated with an investment loan.

Investment loans can be a great way to finance an investment property. If you're interested in taking out an investment loan, get in touch with Investment Capital Partners LLC today! We look forward to working with you.