5-10 property financing, could this be the key to your wealth?
The stars have aligned and this is the time to build real estate wealth, or is it? A few months back I attended a Real Estate Investment seminar to learn about purchasing “buy and hold” type income properties and was intrigued by the numbers that I was seeing. Return on investment; this is a term that refers to what percentage you are earning off of the money you invested into the deal. In this case I am not going to focus on any other so called “deal” but real estate. You can purchase a single family residence as an investment property to rent out and make a decent profit. Pretty simple right? The idea behind this is to rent the property to a tenant and over the next 15-30 years the house will be paid off, and not only are you generating a bit of income in the mean time but you will eventually have a free and clear asset to retire with. Strength in numbers is the philosophy and in case you are wondering why I keep emphasizing 5-10 property financing it’s for a great reason. Not many companies are able to offer this so I figured I would spread the word that my investors love to lend.
Since this seminar I attended, I have started to see a few of my clients purchase investment properties. It’s a real make sense type of deal, from low home prices to historic low rates (I know you’re tired of hearing that cliché) and an extremely high rental market the income generated is fantastic. There are a couple of tricks I as a Phoenix Loan Officer have up my sleeve when buyers are concerned about their debt to income ratios being too high to purchase multiple financed properties. When we provide 5-10 property financing for an investor we order two different schedules in the appraisal to help offset the cost of the new mortgage payment. These two schedules we refer to are called the 1007/216 schedule, and I am able to see what the comparable rents are for the property I am financing for a client. The number we use is 75% of the potential rental income and with the low home prices and rates coupled with a inflated rental market this becomes a breeze. The end result: On average my clients were generating an income of $250-400/mo in rents above what their mortgage payment is.
Archimedes was a Greek mathematician in 250 BC (and we all know how smart these guys were) and he said “Give me a lever long enough, and a prop strong enough, I can single-handed move the world” The key to investing is about leverage, use the rental income from your tenants to pay down your mortgage, take advantage of the tax benefits from mortgage interest and acquire a free and clear asset. Plain and simple, we will provide you the 5-10 property financing so that you can utilize this leverage principle effectively. If you are ready you can Get Pre-approved now, otherwise if you feel this information would be valuable for someone please feel free to forward it!
-Justin, Electric Loan Officer
