Best Loan for Real Estate Investors



the best loan for real estate investors super low down payments as little as zero down in some situations they give you all the money for the renovations ultra low interest rates whatever the lowest market rate is 30-year amortization so super low payments and it can go on rental properties or flips and you can do single-family homes or duplexes triplexes and quads if you're going to live in it so yes it can be a primary residence can also be a vacation home loan as well now this is a conventional mortgage so not everybody watching this video is to be able to qualify but even if you aren't loan friendly right now in your personal financial situation I still want you to watch this video because you might be able to flip a property to someone who get this loan you've introduced a loan to them and now more than ever is the perfect time in American history to be using this loan because we are at all time inventory lows as a percentage we've never had a little houses for sale on the market as we do right now and so that means that buyers that normally would have much higher expectations they're dropping their standards and they're even buying all the lappet ated houses because there simply is nothing else available and this loan can help them buy that this loan can help you flip those kind of properties to them without you having to fix them up and as you can tell this is the kind of wisdom this is the kind of signal the kind of truth that you may hear nowhere else now this loan has been around a while but you may never have heard of it you may not have been introduced to it I'm going to introduce it to you here on this video because I think you can make a huge impact in what you're doing what bulbs are to go off in your head as you watch this video when you realize how many more deals you might be able to do and so my name is Phil aapki by the way I'm with freedom mentor.com I'm a financially free real estate investor I don't need to do these videos but I have a passion for teaching and I am the mentor and coach to many of the most successful real estate investors all across North America on the best-selling author of two books my first book had a vehicle estate investor you can find this as a link up here I give it away for free but you're also going to Amazon and get my second book is real estate investing gone bad this is more for advanced this tells you what not to do and this is the number one YouTube channel on real estate investing worldwide over 23 million views and the reason is because what I share is so helpful in making decisions in real estate so you can be more successful hopefully that you can you can reach freedom like I have like so many the people I've mentored happen for you fans of this channel you may be asking yourself Phil you're a creative real estate investing guy what are you doing talking about conventional mortgages good question well first of all the majority of people who watch my videos will never be a part of my apprentice program and that's where we share in-depth techniques about creative investing that most people will never know even invented techniques and most people don't ever know and so what ends up happening is the majority of people that watch my videos may not be able to take full advantage of all the opportunities of creative real estate investing they simply don't have access to the information and so number one this video gives more people access to a technique that can allow them to do more deals but also it can apply a creative investing not necessarily if you get the loan but if the person you put the house to does get the loan and lastly with inventories as low as they are we need all the deals we can get and sometimes we supplement our creative deals with some more traditional conventional deals all right so what is this best loan for real estate investors introducing the Fannie Mae homestyle renovation mortgage this is backed by Fannie Mae because they end up buying it on the secondary mortgage market but actually several different banks and many different mortgage brokers can originate the loan and then of course you get sold a Fannie Mae once it's been originated this loan provides a tremendous amount of flexibility for real estate investors and it's perfectly made for many of us so let me give you some of the highlights now to get more in depth on this there's a fact sheet there's a link right there you can also go to my website free to mentor com go to the blog tab and you'll see this post and there's the link for this fact sheet but one of the main things I love about it is it is a renovation mortgage so it means that they will provide the money for the renovations now they do put those rather that money into a reserve and then what ends up happening is it gets drawn out over time and you can either hire contractors in some cases you can do the work yourself again look at the fact sheet for the details on that that's really nice so if you have a fixer-upper either you want to move into it and live there or you want to buy renovate and resell right there you you've got yourself a mortgage that it has these competitive interest rates these are the same interest rates as the prevailing interest rates at the time in which I'm shooting this video is 4% so you have super low interest rate and you can do a 30-year fixed-rate loan however you can get the money for the renovation which is just absolutely terrific unlike most hard money loans which do give you potentially the money to fix up but they're talking 10 11 12 or more percent and now the nice thing about hard money loans is you don't have to have any any sort of credit in most cases and so you can just get a loan based on the deal itself whereas here it does require you to be able to qualify for a mortgage so more the – what I love about this is the amount required down if you're going to move into the property it's going to be your primary residence you may be able to get away with just 5% down or they're even programs out there now that give you the 5% as it's a separate organization you have to talk to your mortgage broker about that if it's available in your local area but that means you might have to have 0% down and I know it's a primary residence and they can go fill out an investor I don't necessarily need a primary residence loan but think about that for a moment maybe you own a home right now you've owned for several years and maybe you pay down the mortgage maybe it could cashflow real well if you moved out and you turn that into a rental and maybe you can find a deal right now on the market or even off market hopefully now you can buy with one of these loans that you can fix up and you can stay there you could live in there and one of the great things about our current tax structure which this could change is that every two years you can resell a property that you've lived in and whatever the gains are are tax-free that has to be your primary residence for two years but just think about that envision every two years buying a new home renovating living there for two years and then reselling let's say you make your 40 50 80 thousand dollar profit or more that's completely tax-free so this can apply to a long term stress you may have now after you go from primary residents the down payment requirement does go up if it's going to be a true-blue investment property you may have to put as much as 15% down which is still less than the typical 20 to 30 percent out of most investor loans so it's still great but it does require a little bit of money there but for many of you watching this video you might be able to do that so that's another huge highlight that I absolutely love one other characteristic of this loan program that I really like is how flexible it is with the types of properties you could use it for so as we talked about you could use it for your primary residence not only for a single-family home but a duplex a triplex for a quad now if you go into the world of investor loan or second home vacation loan then it has to be a single unit it can't be a duplex triplex or quad that's not all that because I have moved my entire inventory of portfolio of investments over to vacation rentals because the money is just so huge and I've great videos on that by the way if you want to know all the reasons why I've done it that way as well as how you can do the same thing with vacation rental investing so all all the flexibility is just terrific with this thing on but like all bonds nothing is truly flexible there are parameters there are underlining underwriting guidelines so this loan I think is a lot better for us as investors there is another type of loan that's also administered by the US government and that is called the FHA 203k this loan is actually been used a lot more than this one and this has a lot less underwriting restrictions however it's specific to primary residences so this is really good for someone who is buying a home to live in and they can't get this one are they otherwise you always want to go this option but if you can't get this one you might be able to qualify for FHA this is a problem though on the other side of the coin if we're trying to flip a property to someone and the house needs a lot of work and you don't want to be the one to setup you might put on the market right now because the inventory levels are so low and you might be able to get some interested parties and this one right here is going to work out pretty well for you because Fannie Mae does not restrict you as much on how long you've been on title we call it title seasoning however FHA requires you to be on title for 90 days before you resell a property now my team and I have actually invented a technique to be able to overcome this this problem with FHA but it's not something I can tell you on a video like this because it's only for my apprentices and if I let that cat out of the bag and somebody does it wrong you'll ruin it for the rest of us who are doing it right okay so this loan here is going to have less under running restrictions on who can qualify as far as the income ratio and those kind of restrictions however don't have the flexibility as this one this one allows so much more that can be done so between these two loans but especially this Fannie Mae homestyle renovation mortgage you have the ability to do deals now or flip deals to people that you otherwise imagine you can do and what's so nice is with the interest rate as low as this thing is you can get in on a property fix it up and then get it out there as a rental for example as a vacation rental which you see I talk about a lot and now you can make a ton of money I mean as it goes as opposed to going for maybe a hundred or two hundred dollars a month positive cash flow I mean you can potentially go to a thousand or two thousand a month positive cash flow so these vacation rentals and this could be your loan to do it then you go buy it in an area where there's a lot of demand for people that are traveling there and the house needs a lot of work and you can be the one step in there and get that work done and somebody else is fitting the bill and if you want to know who can help you with a loan like this reach out to some mortgage brokers and I want to encourage you on this only work with a mortgage broker who has done this before if they never originated this loan or this loan don't even talk to them because they're not going to be as helpful and they'll try to sell you on the idea that oh it's just like every other loan I'll figure it out don't worry ah you need to work with someone who has already originated this and there are literally hundreds of thousands of mortgage brokers out there and there are definitely plenty that have originated these loans so that's who you would contact and ask them more about the details and then you can share with them your financial situation and they can tell you what's possible all right again thanks so much for watching this video and if you have questions and whatnot just put them down here below and I'll try to carve out a time out of my schedule to help you with that and if you're the type of person that really wants to be incredibly successful with this business you want to go to a point where you're making two three five hundred thousand dollars a year in real estate investing then consider my apprentice program where my team and I work with people one-on-one and we turn them into first-class money-making machines at this point we are the dominant force quietly in the real estate investing world my my apprentices that are scattered across North America are absolutely crushing it right now it is the best time to be in this business in the past 40 years I have a video on that subject as well you should definitely watch that video because now is the time to be in this business now is the time to be executing because it doesn't get any better than this this is high times all right thanks everybody see you the next video

21 thoughts on “Best Loan for Real Estate Investors

  1. Hey Phil,
    I’m looking for a lender that’s familiar with this program in the Memphis, TN area…please advise🙏🏽

  2. Question: my mom wanted to buy a house to start her day care in, should I do that by finding a subject to with someone that likes the idea, lease option ect or with these mortgages loans? Thanks anything helps

  3. Great well researched video. This are two of the types construction loans my company makes, these are great loans. You can also use these loans, to rehab homes you already own. He is right about using someone who knows their way around these, the learning curve as a broker was very painful.

  4. Can this type of loan be use under an LLC to purchase the property to flip or personal loan only?

  5. So this loan can be used for flip. O OO, and/or primary loan? Please clarify not clear

  6. We have tried to get in but can't even get considered. What requirements is there really to the apprentice program? I have the course???

  7. Such a great video Phil!
    By the way, do you know any kind of loan for non-us investors who are willing to put down up to 50% for the payment?

  8. Is this the 203 K loan? I want to combine FHA loans and 203K loan with 3.5% down. which would be free because of ny city program that offer up to $40,000 in Grants money for closing costs and down payment.

  9. Awesome video, but I have a question for you Sir, how about if I already own a property (triplex to be exact) and want to have a home equity line of credit so I can use that money to invest on other property, what loan do you recommend considering I don't have a great credit score and the property is already pay off, thanks in advance.

  10. Hi Phil and all viewers. Do you guys know any brokers or lenders that will lend this product to a Canadian person buying properties in the US

  11. yeah I hate that seems like everybody had talked to his scaring me one way or another grabbing me by the horns and tell me but I can't I cannot do

  12. if it's a fix me up or I'm going to need a home improvement loan a second loan in addition to the primary

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