How to Structure Investment Property Loans

It may sound complex, but structuring your investment property loans is easy. There are several options on how to structure your investment property loans, and what companies are best to work with. Structuring your loan according to your needs will have you reaping the benefits long-term, and your return of an investment will be thanking you for your hard work.

DFW Specialty Lending is a hard money lender based in Texas, and they are offering several ways on how to structure investment property loans. The approval process is less of a hassle, and it’s quick too. They help you assess which loan structure is most suitable for your needs, which adds to the ease of application.


1. Principal and Interest Loans

This is where you pay both the principal, which is the amount you owe on your mortgage, and the interest which is the bank fee for the loan. If you have this kind of loan, you will be paying interest and your mortgage concurrently.

This kind of loan usually has a fixed term, meaning you will have a time frame wherein you should pay your loan fully. However, the benefit of this is that you get to pay your loan within your means, and the bank will have no control and ownership once you’re done paying.

2. Interest Only

This one is quite simple. You will be paying interest only on this particular loan, and your mortgage is untouched. The benefit is that you can utilize your money at the beginning of the loan, and your monthly payments will be smaller.

When you’ve finished paying off the interest, you will have enough money to pay off the mortgage, and possibly even do so in a shorter amount of time.

3. Variable Loan Structure

This way of how to structure your property investment loans is the most popular. People often use this structure because when market prices go down, you can save the extra money you have and add to when market prices eventually go up. This allows you to pay off your mortgage because of all the extra money you can save. The market is constantly fluctuating, and if you’re the type who can predict it, you’re in for a treat when it comes to paying off your loan.

4. Fixed Loan Structure

This structure will have you paying off your loan during a specific time frame, usually one to five years. Your interest rates will remain the same, which means you know how much money you’ll be shelling out every month, and you get to plan.

The downside of this is since it is a fixed amount, you won’t be able to add extra to your loan payment. However, there’s also a benefit to this. Since it is a fixed price, you won’t need to worry about market rates, and you will receive lower interest rates.


DFW Specialty Lending is not just a lending company. They can set you up with a loan specialist who will sit down with you and structure your property investment loan to suit your needs. The structures above which they follow are the market standard to help you plan and be financially wiser for the future.

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