Although many people like the idea of getting involved in real estate for purely investment purposes, there are some hurdles to get started.

Having access to enough cash or at least secure financing can certainly open a lot of doors in your plans for quality real estate investments. But there are some options that not many people are aware of that can provide additional funding. Basically you are using the value of your new properties to pay for various costs.

The concept starts with using your initial cash to make your purchase or purchases. Then, six months later, apply for a Fannie May-backed loan up to 75 percent of the home’s value.

This can provide better terms than a traditional refinance loan. But the amount may be slightly higher if you don’t plan on using it for a primary residence.

Experts in real estate investments say that not a lot of people know that Fannie May allows people to finance as many as four single properties including one as a main residence.

Under Fannie Mae’s terms, “single property” isn’t just a one-family home but can be a duplex, triplex or fouplex.

Some of these multiple financing efforts require a solid record of past real estate investments, so may not be approved if this is someone’s first financing effort. Instead, it’s recommend that you have at least two years of investments.  Not only will this make lenders and fellow investors more comfortable with you and your plans, you as also may be able to count future rental income to be able to qualify for this type of loan package.

Another real estate investment option is a business loan through the U.S. Small Business Administration for start-up costs or costs when an already-existing business wants to scale up to the next level.

According to the SBA, loans can be provided if a business takes up at least 51 percent of a space. Qualifying for this real estate loan does require putting at least 10 percent of the loan down.  

For more investing strategies visit Business Financing Corporative.