Cash Flow Financing
back to resource index
5 Myths of Investment Property Financing Revealed
I talk to real estate investors every day and almost every one seems to have the same problem- CASH. Not enough of it, where to get it, need it for other investments or fix-ups, etc. That's why cash flow financing is critical!
The days of 100% financing are over, at least for now, but a savy investor can still structure deals in ways that can give them a great cash-flow property.
One of my most popular loans right now is the "fast and easy" loan, designed for people with good credit and at least a 10% down payment on an investment property.
Rates are very competitive- as low as the low 7's(as of December, 2007), on a 30 year fixed, making it feasible to cash flow despite the small down payment requirement.
If this loan is not what you're looking for, there are literally dozens of other excellent investor-friendly mortgage options available today.
The first step with all of the investors I work with is to have a conversation about your goals and your current situation. Are you an experienced investor, or is this your first property? Do you have any cash to invest in your real estate business, or do you need to generate cash to get the ball rolling? Will you keep the particular property to rent, or do you plan to "fix and flip?" There are many things that I like to discuss with my clients in order to come up with a game plan and advise them as to the best way to structure their financing.
My goal is to earn your business long term and become your trusted advisor- part of being successful in real estate investing and in life is to build a team of experts around you who can help you achieve your goals. Working together with the same mortgage advisor over time will allow us to come up with an overall plan and execute that plan with your end results in mind. How we finance and structure your deals is critical in your financial success.
The "Option" ARM- Is it Right For You?
One of the most popular investment property loans in recent years has been the PayOption ARM. This loan is great because it is based on a minimum payment rate of 1.5-3% and allows for extreme cash flow on your investment property.
In the past, this was also a great loan because it could be structured in a way to allow for little or no closing costs. However, due to a very high default rate, and a high incidence of fix-and-flip schemes, lenders have been making this loan less and less attractive for investors. However, this loan is still available on the marketplace and may be worth considering. To download a handout explaining the PayOption ARM, please click here.
back to resource index
| 
