10 Things to Know About RE Investor Mortgages

This is not an exhaustive list but things I feel are important for RE Investors to be aware of:

1. You can negotiate the interest rate to some extent

2. You can buy down the rate with points which may make sense depending on the hold time and tax implications since you can write off some closing costs

3. You should never use escrows. If you pay your taxes and insurance out of pocket each year you are more likely to fight them or look for cost savings yearly. START A SAVINGS ACCT AND PUT THE ESCROWS IN THAT SO YOU HAVE THE MONEY TO PAY THEM

4. You can usually find a good lender via referral from an existing investor

5. Short term amortizations are usually preferred if you only plan to do a few rentals. Run the numbers based on your hold time/refi time/cash flow needs

6. You typically need 6 months of cash reserves per property when refinancing or buying any single property

7. Your DTI's usually get bad very quickly when acquiring multiple properties. Look for a local bank or lender to utilize a portfolio program

8. 5 year ARM's typically make sense in this environment based on hold/refi time

9. Your lender works for your and does not get paid until the closing so it is in their interest to close asap

10. You can manipulate your appraisal to come in higher with a little pre-work (see different blog/video)