Okinawa, Japan · Member since 2017 · 40 posts · 15 votes
I'm nearly complete assembling my team in Indianapolis as an out of state investor. I've been preapproved by a place called MJW LLC, however am not seeing a mention of rates. Is this something I ask now, or will I be told what my rate is later down the road when purchasing the house?
On that note, I am not very educated on mortgages. Should I be going w/ an LLC? Would going to a big bank be better? Am I even limited to local banks or can I look outside of Indianapolis? And can somebody please educate me or point me in the right direction on what mortgage terms are good to see for an investor? Basically what am I looking for in a good mortgage contract?
I know this is alot and thank you for your answers!
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
7y
@Teho Kim, local/regional banks and credit unions are usually your best bet. Start calling all of them. The goal is to establish a relationship that you can leverage for years to come.
You should inquire about rates, terms, and requirements when contacting a potential lender.
You can use any lender licensed to do business in Indiana, but some banks only lend in certain areas by their own choice. This gets a little complicated, because you there are different regulations for "banks" (think brick and mortar and accepts deposits) and "lenders." A mortgage broker may deal with "lenders" that are not "banks." If you go to the state website, you should be able to find a list of all banks and credit unions licensed to do business in the state.
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
7y
@Teho Kim, local/regional banks and credit unions are usually your best bet. Start calling all of them. The goal is to establish a relationship that you can leverage for years to come.
You should inquire about rates, terms, and requirements when contacting a potential lender.
You can use any lender licensed to do business in Indiana, but some banks only lend in certain areas by their own choice. This gets a little complicated, because you there are different regulations for "banks" (think brick and mortar and accepts deposits) and "lenders." A mortgage broker may deal with "lenders" that are not "banks." If you go to the state website, you should be able to find a list of all banks and credit unions licensed to do business in the state.
Rental Property Investor · Anderson, IN · Member since 2018 · 9 posts · 1 vote
7y
I'm currently located in California and I used First Merchant Bank for an investment purchase in Anderson, Indiana last August. Rate was 5.675 for a 30 year loan. I liked them and they were pretty easy to deal with. They won't loan on complete tear downs or really bad places but otherwise they seem pretty reasonable.
Rental Property Investor · Anderson, IN · Member since 2018 · 9 posts · 1 vote
7y
That one was for $150k but I just called my contact at the bank and asked if they had a minimum because our next deal would probably be in the $40-$80K range she told me "it just has to be in good condition"