Financing for investement property (newbie question)

[Milind Torney]

Hi all,  I am new to real estate investing. I have finalized the investment property and researching conventional load options. 

1. As I understand, interest rates for investment property are priced higher. Is there any creative options here? I cannot use it is as primary home 

2. I am flexible with downpayment. With 25%. downpayment, I got quotes of 7.5% APR (30 year fixed). with no points. Is it good rate? What is the best rate I should be targeting in the current market.

[Noah Laker]

Quote from @Milind Torney:

Quote from @Noah Laker:

Hey Milind, I'm a local broker, investor, and property manager (100+ STR/Airbnb properties in addition to LTR).

We offer mortgages through our subsidiary company, wholesale to over 100 banks and institutions. From my experience, most lenders are offering the same APR's. The real difference between lenders is gonna be origination costs / fees, which can amount to thousands or even 10s of thousands in closing costs, depending on the size of the loan. We cut out the middlemen to get these as low as possible, so be sure to use a wholesale lender rather than a more salesy loan officer.

Some newer investors try to use hard money or more creative solutions. This will result in much higher costs up front, higher interest rates, and ultimately an expensive refinance down the line. 

Good on you for saving up a substantial down payment so you don't have to go down that road. 

By the way, what kind of property are you looking to purchase? STR? Multifamily? Here in Sac or elsewhere?

I am trying to purchase single family home in Elk Grove.

 Elk Grove is awesome. The municipality deserves much credit for its pro-growth policies. Lots of new restaurants and attractions are moving in, and new residents by extension. 

Feel free to DM me if you would like to work with my team for the acquisition.