Other Financing Options for Real Estate Investors

Investing in rental properties can be a great way to build wealth, but sometimes it requires a significant amount of money upfront as down payment. Fortunately, there are many financing options available to real estate investors. In this article, we will discuss the different types of financing options. Primary Financing Options According to the National Association of Realtor’s survey from 2022, 90% of the loans that buyer’s used to purchase properties consisted of conventional financing, FHA, and VA loans. In 5% of the cases, the buyer did not know the type of loan they got and in the remaining 5% … Read more

Ultimate Guide to Loan Planning for Real Estate Investors

Loan planning is an essential aspect of real estate investing. It involves understanding the limitations of loans that investors can obtain, the optimal order in which to obtain loans, and the types of loans available. In this blog post, we will discuss the importance of loan planning for real estate investors and provide insights into how to develop an effective loan plan. The 10 Financed Properties Limitation Fannie Mae and Freddie Mac are quasi-government loans that most lenders sell their loans to. Investors can obtain these loans until they have ten non-owner-occupant financed properties. However, their personal residence counts as … Read more

Ultimate Guide to Hard Money for Real Estate Investors

Real estate investors often utilize a variety of financing options to fund their investment properties. While traditional financing options like Conventional loans, FHA, VA, and USDA loans are popular, they may not always be the best fit for every investment strategy. That’s where hard money loans come into play. In this post, we’ll discuss what hard money loans are, how they work, and when they’re a good option for real estate investors—especially those looking to utilizing the fix and flip strategy or BRRRR strategy. What Are Hard Money Loans? Hard money loans are short-term, asset-based loans that are typically used … Read more

Ultimate Guide to Private Money for Real Estate Investors

Real estate investors are always looking for financing options to fund their deals. While conventional financing is the most popular option, there are other popular traditional financing options like FHA, VA, USDA and portfolio loans. Plus, there are also quite a few creative financing options available including owner financing, wrap financing/subject to, the lease-option/lease-purchase family and more. In this blog post, we will discuss private money loans for real estate investors. Private Money Loans Private money loans are loans provided by individuals or companies who are not traditional lenders. These lenders are usually individuals who have extra money to invest … Read more

Ultimate Guide to Commerical Loans for Real Estate Investors

Are you a real estate investor looking to expand your portfolio beyond single-family homes and small multi-unit properties? Then it’s time to consider commercial loans. But where do you start? In this blog post, we’ll provide a comprehensive guide to navigating commercial loans for real estate investing. Understanding Commercial Loans First things first, let’s define what we mean by commercial loans. In the real estate world, commercial loans refer to financing for properties with five or more units or any type of industrial property. These loans are different from traditional consumer-based loans, such as conventional, FHA, and VA loans, as … Read more

Ultimate Guide to Portfolio Loans for Real Estate Investors

Real estate investors often require financing options to finance their deals, and portfolio loans are a great solution… in some situations. In this blog post, we will discuss everything you need to know about portfolio loans and how they can benefit real estate investors. What is a Portfolio Loan? A portfolio loan is a type of loan that is held by the lender instead of being sold to a third-party investor. This means that the lender has more flexibility in setting the loan terms and can consider additional factors beyond just the borrower’s credit score. Traditionally, many real estate investors … Read more

Conventional Financing 101 for Real Estate Investors

Whether you’re looking to utilize conventional financing to buy non-owner-occupant investment properties with 15% down payments and PMI, 20% or more without PMI or to use conventional financing with 3% or 5% down to buy owner-occupant properties when utilizing a house hacking or Nomad™ real estate investing strategy… you’ve found the right place. Watch the class on conventional financing below for detailed information: Or, use the quick summary to learn about conventional financing options for real estate investors: Conventional financing isn’t the only financing available to real estate investors. In fact, there are several other options as well covered below. … Read more

Low Down Payment Financing Options for Real Estate Investors

Real estate investing can be a profitable way to build wealth, but it often requires a significant amount of capital. One of the biggest hurdles for aspiring investors is coming up with the down payment required to purchase a property. Fortunately, there are various low down payment options available to investors, making it easier to get started in the real estate market. Creative Financing Creative financing is a strategy that offers low down payment options for real estate investors. It includes strategies such as seller financing, lease options, and subject-to financing. Creative financing can be risky and require extensive knowledge … Read more

Is It Better to Buy 20% Down Rentals or Invest in Stocks?

Good morning and welcome everyone to this class where we will be exploring the benefits of buying 20% down rental properties versus investing in the stock market. Our analysis covers about 305 US cities and aims to determine which strategy is faster, leads to higher net worth, and has more risks. For the rental property strategy, we assume buying traditional 20% non-owner occupant investment loans on rental properties in each market, using that market’s median home price and estimated rents. The investor saves up until they have enough for a down payment to buy a rental property and invests any … Read more

Is Creative Financing Really Nothing Down?

Good morning and welcome everyone. Today, we will delve into the topic of creative financing and whether it means nothing down. The real estate industry has witnessed an increase in creative financing over the years, and it has become an essential tool in the hands of real estate investors. James Orr will lead the class, and it is the last session of Q1 2023. The class includes traditional nothing down options such as private money, hard money, VA loans, USDA loans, and local bank options. In addition, we will explore the family of creative financing, which includes subject two, owner … Read more