Category: Investment Properties

INVESTMENT PROPERTY – HOW MUCH TO PUT DOWN?

Are you thinking about buying an investment property in 2024? You hear interest rates may be coming down, and property values have leveled. You may be concerned that if rates go lower, more buyers would enter the market thereby driving prices up and making it harder to purchase a property. So, now may be a good time to buy. How much down payment is needed to purchase an investment property? Conforming loans require a minimum of 15% down payment. But, the discount fees to get a loan at this down payment level are pretty high. It may make more sense...

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MULTI-FAMILY FINANCING – INVESTOR VIDEO SERIES

The type of loan available depends on the number of units you are purchasing. If you are purchasing up to a 4-unit property, you can get a 30-year fixed mortgage. However, if you are looking for an apartment building or multi-family 5+ units, lenders consider this commercial financing. These loans are typically fixed for 5 or 10 years, and then will adjust. The closing costs for commercial loans are typically higher. If you are looking to buy multi-family properties, but are unsure as to what lending options are available, give us a call, we can help. We are mortgage brokers...

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INVESTOR VIDEO SERIES – CAN I QUALIFY TO PURCHASE AN INVESTMENT PROPERTY?

If you can qualify for a primary residence, you can probably qualify to purchase an investment property. When purchasing an investment property, the appraiser prepares a schedule of market rents. The lender takes 75% of the rents on this schedule and subtracts the proposed mortgage payment. This amount is then added to your income or debts. Thus, if your debt-to-income ratio is sufficient to purchase a primary residence, you can likely pick up an investment property. If you want to invest in real estate and need help determining whether you can qualify, give us a call. We have helped many...

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INVESTOR VIDEO SERIES – ROI AND CASH FLOW

Return on investment (ROI) and cash flow are factors to know when purchasing an investment property. For example, let’s assume you put $100,000 down on a property, rent it for $3,000 per month, and your expenses, including mortgage, are $2,400 per month. The cash flow is $600 per month income, which totals $7,200 per year. In order to determine the annual ROI, the annual income is divided by your initial investment, in this case $7,200/$100,000 = 7.2% ROI. Note this calculation does not consider the payment of principal on the loan (which would result in a higher ROI) nor potential...

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CAN AN INVESTMENT GROUP GET FINANCING?

Are you a part of an investment group looking to purchase rental homes. Can an investment group get financing? Can you get financing if you purchase rental homes with a friend? Yes, you can.

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WE BROKER BOTH COMMERCIAL AND RESIDENTIAL INVESTMENT LOANS

We can broker residential or commercial loans on investment properties. If you are buying a 1-4 unit home, you would apply for a residential loan. If you are applying for a 5+ unit property, you would apply for a commercial loan. If you are applying for a residential investment property, plan on making a minimum 20% down payment; interest rates are better at 25% down, so you may want to put more down. Closing costs may be a little higher, especially if an appraisal is required. The lender could require a rent schedule or operating income statement in addition to...

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LOANS FOR INVESTMENT PROPERTIES

Are you interested in investment properties but do not have the capital to invest? Do you wonder how much money is needed? What if you cannot qualify? There are a few steps to take to get started. To see what the requirements are for investment property loans,  We are a mortgage brokerage. Our skilled originators can provide straight talk and sound advice, we’re here to help. We offer a variety of products and services, ask us how we can assist you today. Counsel Mortgage Group®, LLC www.counselmortgage.com 480-502-1000 NMLS #178927 AZ MB #0909580 CA DBO #60DBO43873 Copyright © 2021 Counsel...

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INVESTING: STOCK MARKET OR RENTAL PROPERTY?

Let’s compare the two:  The nice thing about stocks is that you simply invest your money in a fund and sit back and watch it, hopefully, grow. Obviously, it is not this easy, as a lot of homework needs to be done up front to make sure you are placing your funds in the right investment so you can get the returns you hope. Stocks may also generate dividends giving you periodic cash payments to reinvest or put in your account. Some funds have fees and you would need to consider the cost of these fees in choosing your investment....

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