How do I get lower rates from lenders?

1 Reply

As a new investor, how would one go about proving to a lender that high interest isn’t necessary?

Credit: very bad
Capital: $0 * creative financing(seller financing) & loan fees wrapped in loan *

I have a business plan, I’ll be using an experienced management company, I’ll provide in-depth analysis on the property (hypothetical) & location, & I HAVE AN EXIT STRATEGY! :)

Is this enough? I’d like to make a good first impression.

Thanks for all advice!!


@Jonathan Pluviose the very basis of interest rates in lending is based on risk.  In lending, risk is measured by several factors but in general, for residential lending, risk is determined on your credit score and your capital.  Your "affordability factor" or "Debt to Income" is important but it does not have any bearing on your interest rate.  So if your credit is low...the bank will charge you a higher rate.  That's just how lending works.   Please don't hear what I'm NOT saying.  If you have a high rate, that's not a reason to stop investing!  Many very successful investors started their career out with "higher" rates.  Keep learning and make good decisions and you will be fine.  Thanks!