Real Estate Investor Financing After Coronavirus

Estimated Monthly Payments - All Loans
Estimated Monthly Payments - All Loans

Has financing for buy-and-hold real estate investors, Nomads™ and house hackers changed since COVID? How so? How do you finance buying your investment properties?

In this class you'll learn:

  • What's changed with COVID?
  • The math behind forbearances and why you may not want to take one
  • Lender selection - going beyond just the lowest cost
  • Different lenders, different loan programs - not all lenders are the same
  • A brief discussion of Private Mortgage Insurance (PMI) as it applies to investors and Nomads™ (see full class on Private Mortgage Insurance for the 2 hour version)
  • What financing is Nomad™ approved and which to avoid
  • Nothing down loan programs we can use in our current market
  • A brief discussion of funding fees
  • Is creative financing really nothing down (subject to, lease-option, agreement for deed, owner financing, wrap financing, etc)
  • Down payment assistance programs
  • The what, how and when of 3.5% down payment FHA financing (for investors)
  • Conventional financing - the financing we can come back to many times as we acquire more properties
  • The pros and cons of portfolio lenders and portfolio financing
  • Commercial financing - a necessary evil for some types of deals and why you should avoid it on other deals
  • A brief discussion of financing your acquisitions with private money, hard money and partnerships
  • A discussion of Home Equity Lines of Credit (HELOCs), owner financing, all cash purchases and using life insurance, retirement accounts to purchase properties
  • A chart-based comparison of loan types looking at how interest rates, down payments and loan type impact your monthly payment and therefore your returns
  • Charts comparing monthly payments for non-owner-occupant (investor) loans and owner-occupant loans (that Nomads™ might use to acquire properties before eventually converting them to rentals)
  • A discussion of 15% non-owner-occupant loans versus 20% down payments... is waiting to have an extra 5% worth it?
  • The extra return on investment (ROI) from additional down payments from 15% to 40% down
  • Comparing Nomad™ to a variety of non-owner-occupant down payments and why Nomad™ is amazing
  • Loan planning... the surprisingly difficult puzzle of which loan to do first, second, etc.
  • Changing interest rates... a brief discussion of whether to buy down your interest rate or not to improve cash flow
  • Nomad™ loan basics including the recommended loan order for Nomads™
  • The income required to qualify for loans - a discussion of debt-to-income ratios (especially Nomads™ that are in markets with negative cash flow)
  • Accessing equity in properties
  • Preparing for financing... getting your financial house in order
  • Finding a lender and lender interview questions
  • Tips for applying for loans
  • What financing work you'll need to have done prior to looking at properties
  • Plus much more...

Duration: 2 hours and 10 minutes
Recorded: May 13, 2020
Instructor: James Orr