Hello, I am just getting started with my real estate investing business. I have a couple of pre-approvals from lenders in my area (Oklahoma City, OK) but the max term they will give me is 25 years, some only offering 15 years at a 9.25% interest rate. In a recent webinar, David showed an example of a rental analysis and put the loan term for 30 years and said that's what we should be trying to get. Does anybody have a reference for a lender in my area that will do this? I am having a lot of trouble finding cash flowing properties in this market with these high rates. Eventually, I will be seeking properties that need rehab and I know there's much more room for growth and opportunity in doing that but unfortunately at this time I am unable to do that. I would prefer for my first rental property to be turn key or as close to it as possible. Thanks in advance for any guidance.
I can recommend that you reach out to local banks and credit unions in Oklahoma City and speak with a loan officer to discuss your options.
Additionally, you may want to consider working with a mortgage broker who can help you find lenders that offer competitive rates and terms for investment properties. A mortgage broker can also help you compare different loan options and choose the best one for your needs.
When it comes to finding turnkey rental properties, you may want to consider working with a real estate agent who specializes in investment properties. They can help you find properties that are already generating cash flow and are in good condition, which may be more in line with your current investment goals; and they may also have connections with your local lenders and mortgage brokers. It can be a complex process, but with the right guidance and resources from your local agent, it'll be less stressful indeed. Good luck, Jake!
I can recommend that you reach out to local banks and credit unions in Oklahoma City and speak with a loan officer to discuss your options.
Additionally, you may want to consider working with a mortgage broker who can help you find lenders that offer competitive rates and terms for investment properties. A mortgage broker can also help you compare different loan options and choose the best one for your needs.
When it comes to finding turnkey rental properties, you may want to consider working with a real estate agent who specializes in investment properties. They can help you find properties that are already generating cash flow and are in good condition, which may be more in line with your current investment goals; and they may also have connections with your local lenders and mortgage brokers. It can be a complex process, but with the right guidance and resources from your local agent, it'll be less stressful indeed. Good luck, Jake!
It sounds like you’ve been talking to a commercial lender. You want to talk to a regular residential/consumer lender. It’s possible to get a 30 yr loan this route, never heard of a 30yr commercial loan.
Hello, I am just getting started with my real estate investing business. I have a couple of pre-approvals from lenders in my area (Oklahoma City, OK) but the max term they will give me is 25 years, some only offering 15 years at a 9.25% interest rate. In a recent webinar, David showed an example of a rental analysis and put the loan term for 30 years and said that's what we should be trying to get. Does anybody have a reference for a lender in my area that will do this? I am having a lot of trouble finding cash flowing properties in this market with these high rates. Eventually, I will be seeking properties that need rehab and I know there's much more room for growth and opportunity in doing that but unfortunately at this time I am unable to do that. I would prefer for my first rental property to be turn key or as close to it as possible. Thanks in advance for any guidance.
These are local banks that I have been getting approvals from. I have one I'm waiting to hear back on that will potentially give me a 30yr option but the other ones have said a max of 15 or 25 years depending on the bank. I will look into a broker and see what other options are available. Tom, by commercial loan do you mean a loan for a commercial property? The banks are aware of my intentions to buy residential property and to rent them out so i'm not sure why they would be classifying it as a commercial loan.
@Jake Minyen It sounds like you are trying to buy in an llc/entity name. This eliminates conventional loans. If you buy in your personal name, any lender can get you a 30 year conventional loan.
@Jake Minyen It sounds like you are trying to buy in an llc/entity name. This eliminates conventional loans. If you buy in your personal name, any lender can get you a 30 year conventional loan.
Yes, after speaking with them again and getting clarity, this is the case. I formed an LLC earlier this year and thought that was the way to go. From a loan standpoint just starting out, it appears it may not be. Since the business is brand new and they asked for all of my current W2 and tax records, I thought that this was going to be a personal loan because my business has no credibility yet. I was mistaking.
Even on 30 year notes, it's still tough to cashflow. Looks like you got some clarification that these were commercial loans using your entity rather than personal loans. If you'd like some good resources for personal lenders that will finance an investment property, I'd be happy to connect you with a few. The rates are a little better and the longer loan term will help with cashflow, but unfortunately you won't be able to purchase using the LLC in this case.
Please feel free to reach out if you need any guidance locally. I'm always happy to help!
You are most likely going to want to speak to a mortgage broker licensed in your area. I can help refer someone to you if you want to reach out privately. I have never quoted an INV property loan that is 25 years... We do only 30 year terms. As far as cashflow, it depends on the type of property and market rents in your area.
9.25% seems very high, however I would be interested in hearing more details about the situation for something that I am missing.
@Jake Minyen- there are plenty of lenders offering 30 yr fixed loans for rental properties .... also down payment can be as low as 15% of purchase price for a 1 unit property - good luck
These are local banks that I have been getting approvals from. I have one I'm waiting to hear back on that will potentially give me a 30yr option but the other ones have said a max of 15 or 25 years depending on the bank. I will look into a broker and see what other options are available. Tom, by commercial loan do you mean a loan for a commercial property? The banks are aware of my intentions to buy residential property and to rent them out so i'm not sure why they would be classifying it as a commercial loan.
Hi @Jake Minyen, sorry I didn't respond sooner, I wasn't notified of your response. Looks like you found your answer.
If you haven't found a lender, I use Tom Rosser at Gateway Mortgage when I finance conventionally. He's been great and creative when necessary. A true closer.