Interest rate guidance

[Jay Shah]

Hi fellow investor pros, I am getting 5.125% interest rate for my first investment of about 300k loan from conventional bank which is quite high for me to get positive cash flow. Is there any advise of how to get lower interest rate ?

[Tim Delaney]

My first single family investment property was at 5.8% last November (when rates were a bit higher). I thought that was still quite high given my excellent credit and great business loan and primary home mortgage track record with the bank. But both the mortgage officer and my business banker (who also invests in real estate personally) explained that because it was my first investment property the bank considered it a bit riskier. Fast forward almost a year and I was just told by them that if I refinance now that I have a year in on that house and almost a year in on a commercial property that rate would probably drop to the low fours. Hope that helps a little.