Thursday, 30 October 2014 00:00

What to Look for in a Great Investment Property Loan

Best Investment Property Loan

What should real estate investors be looking for in a great investment property loan and mortgage lender?



1. Non-Recourse Loans

While he hasn’t always followed his own advice Donald Trump has said for decades that selecting non-recourse loans is the smart way to go to reduce liability, and separate personal from business and investment assets and debt leverage.


2. Longer Amortization Schedules

While some investors may desire to retire debt leverage early, there are clear advantages in reduced risk, and maximizing cash flow by obtaining an investment property loan with a longer term amortization payment schedule.



3. Transparency in Investment Property Loan Rates & Terms

While each transaction, property, and scenario is completely unique, the more transparent a mortgage lender is upfront the better the odds you’ll be given a great deal when it comes time to close.


4. Indicative Transactions

Has this mortgage lender actually funded any investment property loans like this before? Some entities sadly make plenty on upfront application fees they never need to approve loans. Others just prefer a certain niche type or loan, in a certain geographic area. Ask, but also look for indicative transactions which may indicate this is a good fit.


5. An Efficient Investment Mortgage Lender

Look for an efficient lender, who is tech savvy, and can pass on savings to borrowers, and work fast.


6. Reasonable LTVs

Look for a mortgage lender that offers aggressive enough loan-to-values without going so far to be unsustainable. This will indicate a lender who is serious about serving investors, while ensuring they and their clients will be around for a long time.

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