All Forum Posts by: Daniel Sanchez

Second home loans, specifically vacation home loans, are available with as low as 10% down.  They are still backed by Fannie and Freddie and therefore get favorable rates and terms.  Favorable compared to standard investment financing in some ways. 

There are clauses that come with those terms though. IE the loan we got for our coast property requires we use it a minimum number of days per year and cannot lease it out either directly or through a property manager for STR use, for a period of time.

Hope that helps.

all lenders offer vacation homes. vacation homes are not for renting though. If you've got a big enough day job to back up the mortgage then you'll qualify for 10% and you CAN put it on vrbo when you're not using it. But if you're running spreadsheets... it's a rental, and that's a different mortgage.

Anyway to answer your question, any lender CAN do second homes. If they're saying no it's because they're just not used to it. Call someone else.

Can't ask for recommendations here on BP so I won't give any.

@Daniel Sanchez what a question with a wide amplitude of answers. Lots more questions here than answers first:
1) When you're talking about a real estate portfolio are you talking active RE investing (owning property) or passively investing in RE?
2) Are you looking for your portfolio to provide cash flow or appreciation? With options #1 and 2 there isn't really liquidity for a bit of time.
3) Out-perform is a relative term depending on how you crunch the numbers and tax deferral. If you don't understand this, it's important to read up on this because some of the out-performance will happen with tax savings.
4) Liquidity is going to be tough with Active or even passive real estate investing as these are long-term holds to obtain valuable benefits. If you want liquidity, you will need to go with a crowdsourced type of RE investment but that doesn't provide you with much on #3 but you gain liquidity. 

You're still young and have ample time to learn from books and by doing. Best of luck!

What 'should be' a healthy allocation will invariable by RE heavy if you do RE.  Leverage and time, buying below market value and strategic value-adds you can't do with equities will skew ya.

I've never affected change in the return of a stock or mutual fund. 

In 2002 I was a series-7 licensed all in 100% paper equities tiger. 

By 2006 I still had my equities, but they were only about 4% of my world.  Now that I've sold about 7 properties since 2017, the % of RE has 'dropped' to about 92%. 

What's right for you will depend.   Most will fall in the 50-70% RE if you buy right with leverage and do it long enough. 

75 RE. 25 Other stuff :)