Dispelling The Myths of Investor Financing

[Kim Burke]

I recently wrote an article for Minnesota's Real Estate Investor Association's June Newsletter about the myths and realities of obtaining financing for rental properties. Please share your experiences and feedback as we strive to educate investors on their potential to acquire rental properties!

https://mnreia.com/Article.aspx?ID=Dispelling-the-myths-of-investors-financing

[Bill Gulley]

Good tactics Kim!

Welcome to BP Kim!

Hey, BP investors, this is what "creative financing is" knowing the guidelines, playing by the rules, structuring the use of existing assets, to attain the financing goal. 

As to the self employed issue and counting rental income as properties are acquired, yes, that can be done. But, rarely for a new investor who has no track record in managing rentals. This will generally be lender specific as "overlays" (which we discussed in the forums last week I believe). Differences in underwriting by mortgage bankers, mortgage wholesalers, banks or institutional lenders, mortgage companies why may or may not fund at the table, retain and cure loans for later sales into the market.

Lots of games played in mortgage financing, which is why it's difficult to say this or that is allowed as if all lenders or originators underwrite to the same ruler, they don't. And, there are regional influences at work in the mortgage markets, concentrations of loans going up and you may see the effects of the market on underwriting rules getting tighter. It's a changing environment. 

Kim, you might touch base with @Ann Bellamy an HML in your neck of the woods. Good luck :)