⚠️ Non Qualified Mortgage & Advice For Fellow Newbies. 🚨

[David Hughes]

After 3+ years of studying methods of how to finance a building in my early 20s with limited income and minimal credit history, I’ve stumbled across the reality that the “professionals”, (loan brokers & local real estate investors) that I’ve been learning from and asking questions to only use conventional or 100% investor funded deals. 

Thus, come to learn the long way that my most idolized mentors that I know personally, who individually hold over $10M plus RE portfolios have zero exposure & experience with non qualified mortgages…. They only know “text book” financing methods, which is not really helpful for a newbie with nothing other than cash for a downpayment, closing & reserves.

If you choose to use the text book qualified mortgage, you must meet all of the qualification guidelines in order to qualify! Welp, that’s not me. That’s not most of us newbies. Especially if you’re 20-27 years old.

Well, fellow newbies, I welcome you to the world of joint ventures and non qualified mortgages! 

I spoke with one  investor today that I was referred to & he changed my entire outlook on financing a building with a simple 15 minute introduction to the world of non qualified mortgages.

He also explained to me if I'm going to do a JV that I really only need 1 partner to sign for the loan and the other partners will just get put onto the title. Once the loan is closed, transfer the property to the partnership LLC.

Advice for the other newbies, with all due respect, just because your mentor has a mansion, Bentley & 30 buildings doesn’t mean they know EVERYTHING. 

Take what they say with a grain of salt and realize while they’re successful and good at what they do, their way isn’t the only way to get the job done. 

By no means am I saying that I’ve wasted these past 3 years shadowing & interning.

However, looking back as of today, I could’ve used my time better by diversifying my mentor pool and learning more methods of financing a building acquisition. 

Nonetheless, better late than never. 

Thanks for reading and I hope the term I shared about non qualified mortgages & the model for a joint venture helps you in your building ownership journey.

[Nathan Murith]

@David Hughes NQM (non-qualified mortgage) lenders are a fantastic alternative to conventional financing and definitely something every investor should have in their toolbelt. In fact, with today’s conventional rates being where they are, the difference between NQM and conventional rates makes it almost a no-brained, in my opinion. There is just so much less hassle with NQM, faster and easier process. Definitely great thing to have in your network and team!