Financing

Make sure you and your REALTOR understand your financing before you go out and look at investment properties. If you are buying a 4plex your financing and down payment requirements will be different than if you are purchasing a small single family home. Or, if you are getting an 8 unit apartment you will probably be looking at a commercial loan. Is the commercial loan a balloon? I’m sure it does not have a 30 year amortization. But is it a 20 year or 25 year amortization?

Also, most lenders will not allow more than a 2% contribution by the Seller for the Buyer’s closings costs. Is an inspection required?

Get your ducks in a row before you waste your time, or mine, going out and looking at properties that won’t work for your financial situation at this time. You’ll be glad you did!

****Again, some of this has been learned through experience. Some from the wisdom of others. I hope you are finding it to be useful to you and your situation.****