Financing
After 4-5 properties, lenders will see you as a professional and not fund your purchases.
20% down is the MINIMUM you'll need for an investment property loan. 25% down payment will typically produce a better interest rate and terms for you.
@Jeff B. You might search for private lenders in BP and connect. They usually will be able to help you.
Good to know :) Running about finding financing is a major delay in our deals.
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
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@ Jeremy Lane
@ J Beard
@ Calum K.
Jeremy you have a lot more options now that Freddie Mac opened up their guidelines from 4 to 6 financed homes in regards to cash out in the future.
Also the minimum 15% down if it's anot SFR. Units will require a minimum of 20% down and when you get up to 5 plus the guides get tougher.
I hope this all helps and have a good one.
@Callum K. When you say private lenders do they tend to amortize like a local bank would, 20-30 years, or are these only short term type loans?
@Dante Pirouz I have been told that some of them do fully amortize them but imo it sounds too good to be true so I am hesitant. I am lining up to do my first private loan once I reach my 10th property so I will likely find out all the details at that time. I am sure there are others on here that might be able to assist in that question. Sorry for the poor response.
Have you went to the commercial side of the lending? The banks I am dealing with are doing 80 to 85 percent of purchase price and then 80 to 85 percent of appraisal on the refi with no seasoning. The will also us equity out of other property I have as down payment.
These are local banks but they are not small these two are the bigger one in my area.
@Jeremy Lane Private money lender will. You can finance up to 90% purchase price with or without rehab funds (up to 100% rehab).
@Dante Pirouz
@Callum K.
There are several programs and some will fully amortize over 30 years with options 3yr or 5yr fixed or 2/28.Hope this helps! Contact me with any questions.