Investor Archives - Commercial Mortgage

September 13, 2023

Published by Bryan Hanley at September 13, 2023

5 Super Effective, Killer, Unique Ways Real Estate Investors Find Deals

Real estate investment is a dynamic and lucrative field that offers numerous opportunities for investors to grow their wealth. However, finding the right deals is often the most challenging aspect of real estate investment. While traditional methods such as working with real estate agents or scouring online listings can be effective, seasoned investors often employ more innovative and unique strategies to discover hidden gems. In this article, we will explore five super effective, killer, and unique ways real estate investors find deals. Driving for Dollars One of the most unconventional yet highly effective methods used by real estate investors is “Driving for Dollars.” This technique involves physically driving through neighborhoods, particularly those with high potential for investment, and scouting properties that appear distressed or neglected. This hands-on approach allows investors to identify opportunities that may not be listed on the […]

May 5, 2023

Published by Bryan Hanley at May 5, 2023

What is Freddie Mac Small Balance? (For multifamily 5+ unit properties)

Freddie Mac Small Balance is a lending program offered by Freddie Mac, a government-sponsored enterprise (GSE) that provides liquidity and stability to the U.S. housing market. The Small Balance program is designed to provide financing for smaller, multifamily properties with 5 to 50 units. These properties are typically owned by individuals or small businesses and are often located in less urban areas. The program offers competitive interest rates, fixed or floating-rate loan options, and flexible loan terms to eligible borrowers. It also includes streamlined underwriting and financing processes, which can make it easier for borrowers to obtain financing for their properties. Overall, Freddie Mac’s Small Balance program provides an important source of financing for small multifamily property owners, helping to support the availability of affordable rental housing in the United States. The maximum loan amount that can be borrowed through […]

April 25, 2023

Published by Bryan Hanley at April 25, 2023

Categories

How to Calculate DSCR: A Simple Guide for the Savvy-ish Investor

Are you a real estate investor who’s a bit confused about what DSCR is and how to calculate it? Don’t worry, you’re not alone. DSCR (Debt Service Coverage Ratio) can seem like a complicated financial metric that only the most mathematically gifted investors can understand. But fear not! With a little bit of humor and a lot of patience, we’re going to break it down for you. First things first, let’s define what DSCR actually is. In simple terms, DSCR measures a property’s ability to generate enough income to cover its debt obligations. Essentially, it’s a way to determine if a property is generating enough cash flow to pay its mortgage and other debt obligations. This ratio is important for lenders to assess a borrower’s ability to repay a loan, and for investors to assess the profitability of a potential […]

October 5, 2022

Published by Bryan Hanley at October 5, 2022

Categories

How to Cash-out Refinance Investment on Your Property: A Step-by-step Guide

Real property is known to be a good investment because historically, its prices are on the up and up. When value appreciates, so does the profit of real estate investors. With that in mind, real property investors should always be on the lookout for ways to expand their real estate portfolio. Cash-out refinancing is one way to do that. What is Cash-out Refinancing? Cash-out refinancing is the process of taking out another mortgage to “finance again” the property. With a refinancing, you can convert your home equity into cash, which can then be used for various things. Since we are talking about property investments, then that cash can be used as a down payment for another property, hence expanding your real estate portfolio. When you apply for a new mortgage, it has to be larger than the balance of the […]

October 5, 2022

Published by Bryan Hanley at October 5, 2022

Categories

Investment Property Mortgage Rates

Real estate is always regarded as a profitable investment. Initially, income from investment properties was considered a secondary source of income. However, they can now be sufficiently profitable to serve as a primary source of income. This means you can consider making a direct living out of it. But, there is a catch, and that drawback is that investment property loans have higher interest rates, which makes them more challenging to obtain. One of the various methods to provide income and long-term wealth is purchasing an investment property, often known as an income or rental property. As with any investment, there are dangers associated with purchasing and owning this kind of property, and financing requirements differ considerably from those for a permanent house. The interest rates that lenders charge on loans for investment properties are known as Investment Property Mortgage Rates. […]

October 4, 2022

Published by Bryan Hanley at October 4, 2022

Categories

Best way to get a Mortgage for Investment Properties over $3,000,000

Getting a mortgage of over $3,000,000 for investment properties can be challenging as most lenders consider many factors and place stringent requirements due to their risk. In most of America, a home worth $3 million is expensive. Technically, when your income exceeds $3 million, you are officially living in luxury. Admittedly, the average cost of a home in America is over $400,000. As a result, the price of a three million dollar home is 7.5 times the median. In locations like San Francisco, San Jose, Los Angeles, Seattle, and New York, $3 million alone won’t get you home because of its location. The pricey seaside cities have nice homes available for $3 million. However, the location of your $3,000,000 home is important. If you are looking to buy an investment property with a mortgage, there are requirements you need to […]

October 4, 2022

Published by Bryan Hanley at October 4, 2022

Categories

Best way to get a mortgage for investment properties over $5,000,000

Owning an investment property provides an excellent opportunity to make money from real estate. However, getting an investment property requires a lot of financing and is, thus, mostly funded through mortgages. Getting a mortgage for an investment property is quite difficult already. But when it comes to investment properties over $5 million, it’s almost mission impossible. However, there are ways around it – there are effective ways to get mortgages for that luxurious property, whether you’re an individual or a group. This piece expires some of those ways. What qualifies as an Investment Property? A real estate property is considered an investment property if it was purchased to make a profit through rental income, potential resale, or both. Investment properties may be owned by an individual investor, investment firm, or corporation. These properties may be held for the long term […]

October 4, 2022

Published by Bryan Hanley at October 4, 2022

Categories

Best way to get a Mortgage for Investment Properties over $10,000,000

Real estate investment requires a significant amount of money. With five or ten thousand dollars, you can comfortably get into the crypto or stocks market and make a healthy profit. However, when buying property, you need hundreds of thousands of dollars. Most times, you will need to get a mortgage to be able to afford a real estate property. Buying an investment property is one of the best ways to make money from real estate. Investment properties enable you to generate income through rent payments or equity appreciation. Getting a mortgage for an investment property is usually tricky. Lenders typically set steeper requirements to offset their increased risk on this type of loan. While it may be easy to meet these requirements on smaller amounts, getting an investment property loan for amounts running in the millions is usually herculean. This […]

September 30, 2022

Published by Bryan Hanley at September 30, 2022

Current Mortgage Rates on Investment Properties

Purchasing an investment property or a rental property is one of the easiest ways to make money off real estate. These properties allow you to generate income from rental payments or equity appreciation, i.e., holding on to the property for a while and then selling it for a profit. Purchasing and holding this kind of property carries risks, just like any investment, and the financing criteria are considerably different from those for a permanent dwelling. This piece explores the current mortgage rates on investment properties, as well as other requirements needed to make an investment property purchase. What are Mortgage Rates on Investment Properties? An investment property mortgage refers to a loan obtained to purchase an income-generating property. This loan is typically secured by the property purchased with it. Thus if the borrower defaults on the loan payment, the lender […]

September 30, 2022

Published by Bryan Hanley at September 30, 2022

Categories

15 or 30 Year Mortgage for Investment Property

One of the most important decisions property investors make when submitting a mortgage application is the loan duration. Despite the fact that the vast majority of buyers choose a 30-year mortgage, others use a 15-year mortgage to take advantage of the long-term benefits that a loan with a shorter term can provide. Although a 15-year mortgage requires larger monthly payments, the total interest paid is lower in the long run. This might result in homebuyers saving hundreds or thousands of money, making it a more sensible choice. A 30-year mortgage might be better if you want to diversify your investments or invest in other areas like the stock market while still making monthly mortgage payments. The fact that a 30-year fixed mortgage will provide you more money each month for investing does not necessarily make it the best choice. However, […]