elcome to the third and used for petroleum refining is a
final segment of a risky investment for many
three-part series about lenders. Make sure your lender is
income property. In this segment able to support your income
we will be discussing financing property goals.
options for industrial income
properties as well as the upside LTV rates for most industrial
(and downside) of owning this income property loans run at a
type of property. maximum of 75%, so plan on having
a nice pile of investment capital
Financial Concerns on hand. Industrial loan interest
rates can also be a little higher
Of the three types of income than for other income property
property, industrial property types-usually between 5.6% and
requires the greatest degree of 7.5%. The 20-year term that comes
technical expertise and with most industrial income
experience. Likewise, financing property loans is fairly typical.
the acquisition of an industrial
income property can be, at best,
very risky without adequate Managerial Concerns
planning and know-how.
Because of the nature of
The first thing to consider is manufacturing facilities,
what kind of industrial liability becomes much more
application the building will be important than in residential or
used for. Not all lenders will commercial income properties.
fund the purchase of all types of Securing the proper type and
industrial income property types. amount of insurance can help
For example, funding the purchase mitigate much of the risk you
of industrial real estate to be will take on after you lease your
industrial facility. indefinitely, or until they
either liquidate or their
While industrial income property operations outgrow your building.
comes with certain risks and This is good news because you are
challenges, it lacks to a large virtually guaranteed cash inflow
extent, the oft-times for the duration of your income
inconvenient nature of property investment.
residential income property
management. Don't expect any late Conclusion
night calls concerning
overflowing toilets or broken In the final analysis, investing
stoves. Much of the time, the in industrial income property
company leasing your property is requires a lot more time, money,
obligated under contract to and prior experience than it's
handle typical repairs and commercial or residential
maintenance to the facility or counterparts. For investors with
equipment. the right skills and financial
backing, however, the payout can
Unlike commercial and be much more rewarding than any
(especially) residential tenants, other income property investment.
industrial tenants usually intend
to lease your facility
About the Author:
Cameron Brown is an internet marketer specializing in investment property. For more information about residential income property, please visit Security National Capital.
Source: www.isnare.com
