Currently looking to do my first investment property. Speaking to some co workers they are informing me that my biggest hurdle would be receiving a loan. Not necessarily a loan for my first property, but once I start getting a few under my belt. Basically, one of them told me that he is unable to receive another loan for a 4th investment property that he has. Although all his properties are cash flowing he states that the lenders consider him "High Risk" so he must come up with around 40% of a down payment instead of 20%. Can someone run me through this process briefly, I know its alot and if you have any articles or books to recommend to me about mortgages loans on properties and dealing with the banks or other lenders that would be much appreciated! Goodluck to everyone on the hunt for deals this week!!
Hello and welcome to this website! The first thing I want to say, no matter how you feel, make your loan application and/or your offer clear and organized for the people you are borrowing or buying from. Make sure you know the lender's rules and what they expect for underwriting and/or offer. What they expect varies. Try to find and use a "portfolio" bank, to borrow from. They are usually a local oganization. You can also seek a private lender, a Hard Money lender, a "rich" partner that complements your talent, or some other type of lending organization.
Make sure your submittal is organized and complete in what they expect, and then some. Look like you know what you are are doing no matter what and dress professionally. It is low inventory but that does not mean you cannot find a deal. You may have to hustle more or greater than is average. Massive action (hustling) will help you find a property to invest in.
A loan letter from your lender that states the time it usually takes to "close" the loan and the maximum amount you qualified for. You could real "How to Win Friends or Influence Neighbers" by Dale Carnegie that tells you how it helps to listen and other things that will grow your company. Asking questions like this can also be helpful on BP Forum. I hope you get what you need! Mistakes are normal. Do not be afraid of any of this. Do what is average in every neighberhood.
There's no reason you should have any trouble getting financing for your first or your fifth property. Anything under ten is actaully quite straightforward assuming your qualifications are in order.
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