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Rental Property Investments
Cameron LeClair just told me about their great rental financing program for first-time real estate investors and Donal Trump wannabees. Cameron is a wholesale account rep at The LENDER. The Lender has creative financing programs on non-QM loans. This month’s special at The Lender is Their No-Doc 25% down payment rental property financing program with no DSCR, no income verification, and no doc. It is like a hard money loan but non-hard money fees and LTV. First-time investors are allowed from $150,000 to $2 million. This month’s special is no points on rate, and only the borrower paid compensation at 1.5%. Contact Cameron LeClair at The LENDER. Here is a blog written by Dale Elenteny on investor cash-flow financing on rental properties:
https://gustancho.com/investor-cash-flow-financing-for-rental-properties/
gustancho.com
Investor Cash-Flow Financing For Rental Properties
Gustan Cho Associates offers the no-doc Investor Cash-Flow Financing For Investment Properties where we just underwrite the rental property
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5 Replies
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Here is a YouTube video from GCA Mortgage GROUP on DSCR Loans.
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Everyone needs to watch this!
Nice Dale! Awesome job explaining how the DSCR could benefit your borrowers who can not go Full Doc.
On point 100%
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This is a great video. Thanks for sharing!
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Check your email Cam the Main Man
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Relying on rental properties can be a game-changer in building wealth. Here’s a summary of what should be considered, some of the advantages it has, issues that can arise, and the strategies for a successful investment in rental property:
Advantages of Rental Properties
Cash Flow:
The proceeds generated through rental properties help cover expenses and generate extra money at the end of each month.
Capital Growth:
Selling a property at a higher price than purchasing it can result in positive returns, as the property’s value tends to grow over the years.
Tax Deductions:
Property owners’ or landlords’ mortgage interest, property taxes, and depreciation are tax-deductible assets.
Anti-Inflation:
Real estate is an incredible hedge against inflation as properties and rental income grow with inflation rates.
How-To in Rental Property:
When it comes to investment in real estate, unlike stocks or bonds, people have better control of the property and can manage and enhance it.
Difficulties of Rental Investments
Servicing Issues:
Owning a rental property can be a labor-intensive business, as it involves screening tenants, making repairs, and more.
Property Demand:
Real estate markets are volatile, and rental and property demand can vary under different economic conditions.
Units Capital:
Many costs at the beginning of the investment, such as capital units, down payments, and renovations, can be huge.
Vacancies:
If the property is empty for longer than usual, it can lose rental income. This can also be stated as an increase in the duration of vacancy due to property loss or breaks in the property’s income stream. Hence, it is very important to anticipate and include vacant periods within the budget.
Legal and Regulatory Issues:
There are many intricacies involved in local legislation and laws for landlords with tenants and those pertaining to landlord occupancy. These intricacies are dependent on jurisdictions.
Tips for Successful Rental Property Investments
Research the Market:
Unless one has understood the demand and supply equation of that region’s property market and the prevailing asking rentals and capital appreciation of the property in question, one should not invest in the region.
Choose the Right Location:
You are in the right location if you have the right box of rental properties scattered throughout areas with high rental demand, such as good schools with good amenities for tenants.
Perform Due Diligence:
It is also worth mentioning that you can buy these properties at reduced prices as long as you undertake a thorough examination or at least have professionals review the condition and maintenance of the property.
Understand Financing Options:
Today, there are many alternatives available to us, whether it be buying a conventional mortgage on the property, FHA loans, or even Investment property loans.
Build a Network:
This, coupled with networking with real estate agents, property managers, and other investors, should provide one with the knowledge and resources necessary to make the investment.
Consider Professional Property Management:
Today, for those who do not have time or want to manage the property themselves but wish to understand the tenant better, there are property management agencies available that assist in such instances.
Regular expenses and an additional budget for O&M should be allocated in order to keep the property up to standard and its occupants happy.
Educate Yourself with the Laws:
Find out what landlord-tenant laws are observed in the position so that, in the end, you do not contravene the law and protect your investment at the same time.
Final Words
Investing in rental properties can be an appropriate policy for creating wealth and enhancing income. Investors will stand a chance of success as long as they do thorough research regarding the property market, the factors responsible for success, and, most importantly, the nature of work connected to a chance property. If you have a specific question concerning rental property investments or want me to provide more information, please talk to me!