Category Archives: Mortgage

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.


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.


-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.


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.

Property Investment Mortgages

Do you like the idea of buying a not-so good property, making it attractive and then re-selling it? You’ll gain a profit from there, won’t you? Or, are you an expert real estate investor who has spent so many years on earning bucks by rental property? Either you’re the person on the first description or on the latter one, there’s something that you really need to know when you’re going to invest in a property. You will need to know facts about investment property mortgages.

People who are in the real estate world are not the only ones who know that we are currently in a housing market bust. Rising foreclosures, decreasing sales, increasing of unemployment, skyrocketing of fuel and living expenses, are just some of the huge issues that an investor needs to face. Actually, it’s not just investors who do but all of us. These economic factors contribute on the investment property mortgages.

Before, it’s just a usual thing when a bank is pleasing a real estate investor to utilize their services. It’s also a usual one to know one-hundred percent property mortgages. You might be surprised to know that also before, mortgages are available almost everywhere.

Unfortunately, many things have changed. It’s now harder to get investment property mortgages. Most of the banks and other lenders are very strict on giving it and it seems so impossible that one can get a one-hundred percent loan. 100% loans are more likely to finish in foreclosure, anyway.

If you think the current condition in the bank is bad for investors, well, it’s not. It’s actually a good thing for you. I reckon the finest way to make your investment continuous is to be conservative enough despite of this tough economy.

Deciding regarding your investment property mortgage can be hard for you but I have an advice for you. Be sure that you’ll attain your goals when you buy a property and not thinking if you’ll reach your goal when you sell it. Wondering what I want to imply?

When you purchase with the intent to sell at a profit, you should not count on a huge asking price making you the return you want.  Instead, you should focus on what you pay for the property and the terms of your investment property mortgages.  Look for built-in equity in your properties.  If your property is purchased low, with equity already a part of the deal, your chances of success are better, and your ability to get a favorable investment property mortgage is better, too.

Most of us know that the basic principle in investment is to buy a low-amount property and then sell it in a high price. Fortunately, it isn’t a seller’s market for these current years. Meaning, consumers can now buy lower-priced properties. So buy your real estate now and start on becoming a real estate investor before the scenario changes into “seller’s market”. Accurate strategies, due cautions and exact property mortgages will help you to succeed in this kind of market. Now it won’t be possible anymore for you to attain your goals for you and your family’s life through property investment mortgages facts.

Tips For Commercial Property Investment

Commercial property investment is different from the residential one. Today, there are plenty of commercial investment mortgage options available. They help you in buying commercial properties. At a smaller level, it might be a warehouse or office space. At a bigger level, it might be a mall or a multiplex.

Commercial property investment is generally made to rent out for business reasons. Prior to buying a property you must ascertain the quality of users you are looking for. It might have to do with area credit history record, needs of the borrower and his payment capabilities.

People might have a single investment in mind. They might also be looking for a portfolio of sorts. In both cases, loans are easily accessible. If you show your worth and neat intentions, you will be able to get Government Grants as well. Such grants are not easy to procure. You have to wade through a lot of red-tape. But if you present your profile well and the grant is being administered then you can even fetch millions from government. It is important to note that government is entitled to hold different audits and periodic assessments for finding out the progress you are making.

An authentic and smart commercial mortgage company would provide you with the right kind of lender. It will also post your entire presentation to him so that he can see your plans clearly and provides you a formal sanction. It would also teach you the basic of insurance and minimal cover. The commercial investment property mortgage companies arrange the most competitive deals for you so that you get your infrastructure cost minimized.

No Money Down Investment Mortgages

In any meeting of real estate investors the topic of no money down investment mortgages almost always comes up. I’m a firm believer in putting as little cash as possible into my real estate deals, and if you’re going to succeed in the long term, you should learn to think the same way.

This is really just Real Estate Investing 101… as simple and basic as you can get, yet vital for you to understand. No money down investment mortgages are a topic you should seek to understand and here’s why.

Your supply of cash is limited, and always will be.

There it is. I don’t care how much cash you have now, or ever will have. I don’t care who you are, or where your bank account stands. You’re cash supply is finite, not infinite, and cash is a valuable resource that gives your real estate investing flexibility and leverage. Using no money down investment mortgages allows you to preserve cash, one of your most valuable resources.

Having ready cash allows you the flexibility of moving quickly when others can’t. It also gives you confidence and leverage when making your offers. That doesn’t mean you need to actually use your cash… merely having it is often enough.

Using no money down investment mortgages and other types of low or no down financing should be undertaken with great care, however. Make sure you’re not paying full price for your properties and financing them at full market value. The way to employ no money down investment mortgages is to buy value. In other words, buy at 80% of market or less, preferably much less.

That one strategy alone will ensure your long-term real estate investing success. If you just go out and pay market, finance the full value, and thus hang on to your cash, don’t make the mistake of thinking you’ve accomplished anything worthwhile. A chimp could do that.

Learn to recognize and buy value. Finance as much as you can to leverage your limited cash, and repeat the process. Over and over. Use creative financing and no money down investment mortgages to accomplish your goals.

Getting a Property Investment Mortgage

It is difficult, if not impossible, for the vast majority of people to purchase a piece of real estate immediately out of pocket. A loan, provided by a bank or credit union, is the most common solution. Those who may be seeking to take advantage of the current housing price drop to invest in real estate, however, need to be aware that obtaining a loan for an investment property is different from obtaining one for personal use.

The economic crisis has caused previously free flowing credit lines to dry up and loan interest rates to rise. Banks and creditors are more thorough now than they have been in years as to who is approved for a loan and for what purpose. If that weren’t difficult enough, a property investment mortgage typically requires a cleaner credit history and a considerably larger down payment than a mortgage for a personal property. To those with a good record history, however, and who are sensible and diligent in doing their homework when finding out what property to obtain and what institution to solicit a loan from should have little difficulty securing it.

Even in the midst of economic instability partially caused by an overflow of credit it is possible to find fixed rate mortgages for 15 or even 30 years. If it proves otherwise, however, and obtaining a mortgage to cover the full cost is not a possibility, the investor should use their knowledge of the market and get creative. If the bank only approves a mortgage that covers 70%, the possibility of using seller financing to cover the remaining 30% exists, especially in a buyer’s market such as this one. Even if that proves more trouble than it is worth, he or she could obtain a home equity loan and use it to cover the remaining percentage.

Investment Mortgage Loan

A Mortgage to Match Your Investment

Mortgage money to work for you? Why not? You have heard finance experts talking about making your money work for you. If you think it is all about insurance, you are dead wrong. With the real estate boom on foreclosed properties, you can have your chance now, even if this is your first time to be an investor.

Investment mortgage loans works like your traditional mortgage, only this time, you are going into business. You can get a fixed rate mortgage or an adjustable rate mortgage, whatever suits your finances. Or you may try your luck with one of those non-traditional mortgage schemes that allow more people with poor credit rating or the self employed to own properties.

How it Works

To protect their investments, lenders require borrowers to provide site map of the property on sale and a report on the financial books of the property if you are buying a hotel or a restaurant. If what they see looks promising, your investment mortgage loan is approved fast.

Initially lenders will require a 25% down payment. You also have to pay for an application fee, closing fees, and other fees associated with the mortgage. In short, you go through all the motions of a traditional loan for a primary home.

But you can always shop around for lenders who are willing to do away with some fees if they see you as a good investment too. A good credit rating will benefit you with lower interest rates. But it is best to shop around for better deals.

Portfolio With Investment Mortgages

More people are using investment mortgages for creating property portfolio to generate an income that can complement, or supplant, their retirement. Truly, it’s not easy to create a property portfolio. However, there are many ways to get it done and investment mortgages are usually a good start.

Investment mortgages are also provided by companies in development finance UK which can be a good choice for new property investors. As a beginner, lenders do not have basis to provide you 100% development finance to support you application for residential or commercial development finance. Although investment mortgages can be used as an additional security for 100% development finance, your capability as a novice investor or developer can still be questioned. When you want to start to build property portfolio, you have to start small.

Investment mortgages in development finance UK can be used to buy a property that requires renovation; which often provides a good opportunity to get favorable return on investment. Investment mortgages can also come in handy when buying a property ‘off-plan’ as this will be available at a lower price and represent a good opportunity for profit. With the opportunities coming up in promising returns, property portfolio will start to build up and investment mortgages can be utilized to extend the portfolio further.

When a property portfolio really begins to take off, investors may choose to utilize investment mortgages in development finance UK for properties abroad. This type of purchase is more suited to the foreign investor since property markets for foreigners are becoming uncertain. However, those who do use investment mortgages for acquiring properties abroad often find that it can be a very lucrative way of adding to their portfolio. Property prices are considerably cheaper outside and there are many up and coming areas that, if purchases are made at the right time, can represent an excellent return on investment. So, for those who want to solidify their financial future, many are finding that investment mortgages are giving the opportunity to make steps into building a formidable and profitable property portfolio.

How To Get An Investment Mortgage

Getting Your Investment Mortgage

Getting an investment loan to buy a property is not a very difficult thing in the consumer friendly environment we live in if you do some research and find a well qualified mortgage broker. In fact, even in Australia it was the overdrive of the banking and financial institutions in giving away loans to even sub-prime customers that led to the recent global recession having an effect on today’s lending policies. Though, banks are considerably cautious in giving out loans today, with a few simple measures, it is still relatively easy to buy a property of your own by applying and getting an investment loan.

Steps To Get Mortgage:

1. Identify the amount of personal financing (deposit) you are ready to contribute when you buy a property. Banks today asking between ten to twenty percent deposit to be paid by the customer, and they would only fund the balance. Therefore, the higher the deposit is you are able to provide, the greater the possibility of getting a loan would be.

2. Always have more than one property to choose from, when you approach a bank. Every bank has its own policies when providing loans, especially with certain developments or certain localities. Also, if the property is too small in size, i.e. less than fifty square meters in size, there is a greater chance that your application might be rejected (see apartment loans here). Hence, have multiple options when approaching a bank in case you miss out on your first option due to a banks policy.

3. Make sure you know the value of the home you are purchasing. Its no good offering too much to have the bank tell you its not worth as much as your offer. Getting a valuation done by a qualified valuer is worth the cost involved. Its even worth trying to get a valuer from the a banks panel of valuers as to ensure they take some weight from the valuation. Once you have the valuation its worth remembering that its getting more serious.

4. Negotiate with the banker or get your mortgage broker to do it on your behalf on the term of the loan, the interest rate, the type of payments etc. Remember that even if the banker uses the words that it is our bank’s policies etc, it can still mean there is some scope of negotiation. It’s the old saying- You will not get if you do not ask!

5. At worst case if you did not apply with a very substantial deposit for your loan, be ready to provide additional collateral security by having another property you can use as an underwritten security (this is generally risky and not usually advised), or by providing additional guaranty in the form of a surety by a close relative. These are both confidence building measures for the bank and they would find it easy to process a loan with collateral security as they have control over more property with a an overall smaller loan in proportion.

Utilizing Investment Mortgages

Funding options like 100% development finance, bridging loans and investment mortgages are usually provided by companies in development finance UK. Each has its characteristics and appropriation in various property projects. If you want to enter the property industry, you can start out with investment mortgages. Commercial development finance can be too risky and costly for you. Likewise, 100% development finance is only for developers and investors who are capable of handling the stiff requirement.

By investment mortgages, novice developers have the potential to build property portfolio. But building up property portfolio by investment mortgages is not the only guarantee to a successful property investment career. Most importantly, it is also about knowing how to use it wisely. It’s a fact that property investments have its ups and downs; pros and cons, risks and rewards, all in one setting. And it is true whether the investment comes from residential development finance or commercial development finance or investment mortgages. There are times that your investment looks like it’s moving up, but there are also times as if your whole nest is slipping out of your hands. But still, the hard truth is, there is profit in property.

Securing competitive investment mortgages for your property portfolio can be one way of making huge profits fast only if you follow some helpful rules. These rules may even help you build the portfolio further and may entitle you to 100% development finance for development projects in the future.

One rule in building property portfolio is to consider locations. You may have heard of this many times, but location has major effect in your property investment. If you’re risking investment mortgages, you need to make a thorough research on places that you want to invest. You should look into the country’s political regime, economy, culture, economic potential, currency, stability, infrastructure, and basically everything that concerns the property development market and it’s potential. Next to finding the right location, you should ensure the property you’re buying is on prime sites. Be sure that the site is feasible for commercial property. Ensure that the spot is easily accessible to target consumers and that it is what is sought after by the people around it.

Apart from the locations and sites, you need to be sure that the investment mortgage is secured under a reliable development finance UK company. Use the expertise and professionalism of the specialist to get the needed investment mortgages. Also, if you’re investment is not under secure and stable company, you could end up with a costly mess.

The rules may sound simple but those are the only important rules for you to live by. Once you know this by heart, you will have a promising future in your property investment career.

Investment Mortgage

The first step when looking for a way to fund your investment properties is to consider how you are going to buy, PLUS, deciding on your exit strategy.

“Do you plan to ‘fix and flip’, rent the property out, or sell the home to another investor? Small differences in your loan could cost or save you thousands, depending on which type of loan package you end up going with.

Which investment mortgage is best for you?

It all depends upon your personal financial position, how soon you plan on paying off the loan, either by refinancing, selling or cashing out, and if you have a variable rate loan, it depends upon what happens to interest rates over the period that you have your mortgage in place.

Your options for an investment mortgage will also be limited by your income, the down payment you make and your creditworthiness. If you have lost a property to foreclosure, or have less than good credit, in this market you may need to consider using creative financing rather than getting a traditional mortgage.

A good mortgage broker or lender will help you compare and contrast the various mortgage programs, and you may also want a financial or investment counselor and a tax professional to help you make the best choices.

The typical investment mortgage today won’t allow you to get into a real estate deal in a highly leveraged fashion. If you do have the money to make a large down payment then this is less risky, and with fixed rates at historic lows this can be one of the best ways to invest your extra cash in today’s market.

Creative Funding Methods for Investors Who Can’t Get an Investment Mortgage

OK, so how do you get the funding for your investment properties if you don’t have a big down payment or perfect credit? There are a number of creative methods you can use that don’t require you to get a traditional loan.

My favorites include the Sandwich Lease Option, Owner Carry Financing, and buying while leaving the Existing Financing in place. With each of these methods, you’ll need to make sure that you find a motivated seller first. Ideally this would be a home owner who is just looking to get out from under their payments. In addition, you’ll need to make sure that the property is able to generate enough in rental income to cover the existing mortgage payment and other costs of owning the property.

Whether you end up getting a conventional loan, or learn how to use creative financing so that you don’t need an investment mortgage, the most important thing is to get started now while real estate is available at bargain basement prices. Look for an investment club in your area that you can join so that you have other investors to hang around and network with. Dedicate at least 3 to 4 hours a week to focus on learning more about your market and how other investors are able to buy real estate creatively without using a traditional investment mortgage.