Investment Mortgage Strategy

The “Dream” of Trump like investing. Your goals and plans require action! Perhaps the easiest way to implement your action could be in the area of “small” rental residential investing.

The mortgage will be the single biggest expense that you will incur. It’s critical to have the Best Mortgage Strategy evolving, to help minimize your expense and maximize your cash flow.

In this chapter, we are going to arm you with information that will help you both understand and also seek more professional guidance in this crucial step. I trust that you have begun to surround yourself with your professional “team” of trusted advisors, including a qualified mortgage broker or banker who has years of real estate investing experience themselves. It’s obvious, that aligning yourself with a team that has this investing experience is important in that they will better understand your needs and help you develop some of the strategies necessary for your success.

THE BENEFITS OF RESIDENTIAL INVESTING:

I often get asked, “Should I invest in residential or commercial real estate?” This often depends on one’s level of experience and sources of investment capital available. The quickest start in the real estate investing arena will be in smaller residential properties.

Essentially, less of your down payment capital is going to be required for a small rental. This makes the concept of investing more realistic for not only the first time investor, but also the experienced.

BENEFITS:

-It’s a wonderful place to engage in your first investment property and continue to learn from your experiences and gain that “track” record that can help you get to the “Next Level”.
-You can quickly become an Expert and duplicate your efforts for success.
-Once considered an Expert, you can attract Joint Venture capital that will give you infinite returns.
-Requires less investment (down payment) capital.
-Mortgage financing up to 95% is potentially available.
-Mortgage interest rates are often much lower than commercial, allowing for a lower mortgage payment and stronger cash flow.
-The government continues to provide “liquidity” into the residential lending marketplace, keeping lending capital more readily available.
-Management is fairly straight forward, whether personally or professionally managed.
-The pool of properties to buy is large.
-Conversely, the pool of buyers to buy your investment (after many years of ownership) is large, providing liquidity for you.

KNOW THE FUNDAMENTALS:

Having a solid understanding of the basics of terms of mortgage financing will help you strategize your current and future real estate purchases and refinances. Certainly your trusted mortgage professional is also there for advice and strategy development, but learning the principles of mortgaging will guide you in your initial Property or Cash Flow Analysis. Here, we will cover the basics to ensure you have a foundation of mortgage terminology. Some of this information may seem dry to some, but is really important in developing the Best Mortgage for your needs. Later in the chapter we expand on these basics and incorporate them into some of the advanced concepts and strategies.