Investors Using Financing
We’ve created this page especially for our investor clients using financing. The west valley offers one of the best opportunities in the country for purchasing an investment home. There has never been a better time than now to buy an investment home. With so many people losing their homes to short sales and foreclosure, it only makes sense that the rental market is going up. If you’re a cash investor, no doubt you are a seasoned veteran at buying & selling real estate. Even if this is our first investment home, we can walk you through every step of the process. When financing an investment home, there are a few things you need to be aware of.
Top 10 things you should know before buying an investment home using financing.
1. Get pre-qualified. This is probably the most important step before heading out to look at homes. Lenders guidelines change monthly, so getting with a lender first to make sure everything makes sense is the first step. If you don’t have a lender already, we would be happy to refer you to a top lender in the area.
2. Know your down payment. Typically, a lender will require 20% down when buying an investment home.
3. Know your “break-even” point. What will you need to rent the home out for compared with your payment in order to break even, or even turn a positive cash flow each month? We will be happy to sit down and go over all of the numbers with you to make sure everything makes sense.
4. How will financing affect our offer as compared to another cash offer. We might need to go in a little higher to compensate the fact that we’re making an offer based on financing. One of our buyer specialists will be happy to talk with you more about this.
5. Know how many loans you can get for investment homes. Typically, you can only get 5 loans total for 5 different investment homes. There are certain exceptions to this, but that is the main rule of thumb. One of our qualified lenders will be happy to talk more about that with you.
Don’t miss out on the next 5 things you should know before buying an investment home using financing. Please provide us with your name and email address below & we will get the second part of our list right over to you.
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