The Most Common Types of Loans for Real Estate Investors

Real estate investing can build substantial wealth, but many investors need financing at some point. Unlike traditional homebuyers, real estate investors have access to specialized loan products designed for investment properties.

These are the most common types of loans for real estate investors, each offering excellent terms for property owners who need additional cash flow.

Conventional Investment Property Loans

Conventional loans from banks and credit unions are the most popular choice for real estate investors. These loans follow guidelines set by Fannie Mae and Freddie Mac, offering predictable terms and competitive rates for qualified borrowers.

Investment property conventional loans typically require 20–25% down payments, which are significantly higher than owner-occupied properties. These loans work best for investors with strong credit profiles who plan to hold properties long-term. The application process takes 30–45 days, making conventional loans less suitable for competitive markets where quick closings matter.

Hard Money Loans

Hard money loans provide fast financing secured by real estate value rather than borrower creditworthiness. Private lenders or investor groups fund these short-term loans, typically lasting 6–24 months.

Hard money lenders can approve and fund loans within days, making them ideal for auction purchases, fix-and-flip projects, or competitive bidding situations. Real estate investors commonly use hard money loans as bridge financing. They purchase and renovate properties with hard money, then refinance into conventional loans once improvements are complete.

Private Money Loans

Private lenders might include friends, family members, other real estate investors, or individuals seeking higher returns than traditional investments provide. These arrangements offer maximum flexibility in terms, structure, and approval criteria.

Terms are negotiated directly between parties, allowing for creative structures that benefit both the borrower and lender. Private money credit decisions vary based on the relationship, risk level, and local market conditions.

Portfolio Loans

Portfolio loans come from banks that keep mortgages on their books instead of selling them to government-sponsored enterprises. This approach allows banks to create their own underwriting guidelines, often resulting in more flexible terms for borrowers.

Local and regional banks frequently offer portfolio loans to build relationships with real estate investors in their market areas. They may accept lower credit scores, higher debt-to-income ratios, or unique property types that don’t meet conventional loan standards. These loans particularly benefit investors who own multiple properties.

Commercial Loans

Commercial loans finance larger investment properties or multiple properties bundled together. Commercial lenders evaluate both the borrower’s financial strength and the property’s income-generating potential.

Terms on commercial loans differ from residential financing. Loan periods often range from 5–20 years, with many featuring balloon payments requiring refinancing. Interest rates may be fixed or variable, depending on the loan structure. These loans suit investors with substantial portfolios or those purchasing larger properties.

The most common types of loans for real estate investors offer key benefits that are not available elsewhere. The best type depends on your investment strategy, financial situation, and the state of the property.

How To Make Your Backyard Feel Like a Private Oasis

Bringing a slice of paradise to your own backyard is more achievable than you might think. Whether you have a sprawling lawn or a small patio, the key lies in creating an environment that feels tranquil, personal, and inviting. Here’s how to make your backyard feel like a private oasis.

Add Lush Greenery

Start with lush greenery to create a serene and natural ambiance. Incorporating a mix of plants, trees, and shrubs adds beauty and increases privacy. Choose varieties that thrive in your climate and consider taller plants or flower-laden vines for added seclusion. By surrounding yourself with greenery, you’ll experience the calming effects of nature while enjoying a layer of privacy from prying eyes.

Install a Custom Pool

A custom pool instantly elevates the luxury factor of any backyard. Whether it’s a sleek infinity pool, a compact plunge pool, or a natural-looking swim pond, having a private spot to cool off is the epitome of relaxation. The advantages of having a custom-built pool include increased property value, a personalized design that suits your style, and the convenience of enjoying a resort-like experience at home. Pair it with a wooden deck or stone tiles for a polished look, and don’t forget to maintain it for a pristine appearance.

Create Cozy Seating

No oasis is complete without a cozy spot to unwind. Comfortable seating, whether in the form of lounge chairs, hammocks, or an outdoor sofa, creates the perfect place for reading, sipping on a drink, or simply daydreaming. Choose weather-resistant yet soft materials and arrange the seating in shaded or semi-shaded areas to maximize comfort.

Utilize Ambient Lighting

Soft and ambient lighting adds magic to your backyard, especially during evenings. You can drape string lights along fences, overhead structures, or even around trees to create a warm and inviting glow. Other options include solar-powered path lights or lanterns, ensuring that the space feels equally enchanting at night.

Build a Privacy Screen

To make your backyard feel private, consider adding a privacy screen. While wooden fences and stone walls are effective options, hedges or modern trellis panels with climbing plants can achieve the same result with added style. This feature allows you to enjoy your outdoor haven without interruptions.

Incorporate Outdoor Textiles

Adding textiles such as outdoor rugs, cushions, and throws can make an outdoor space feel just as cozy as an indoor one. Vibrant colors or patterns can bring character to the space, while soft textures boost comfort. Choose textiles that are weather-resistant and easy to maintain, so they stay beautiful year-round.

Include Personal Touches

Make the space uniquely yours by including personal touches. Think of decorative items like sculptures, potted plants you’ve grown yourself, or even family heirlooms repurposed as garden decor. Adding these details enhances the ambiance and ensures your backyard reflects your personality.

By weaving together these thoughtful elements, you can make your backyard feel like a private oasis. Begin crafting your dream retreat today and savor the peace and joy it brings.