mikeg Posted January 30, 2007 Report Share Posted January 30, 2007 I am hoping that some of you mortgage experts can give me a little advice so that I am armed with the information I need before making an offer on a property. I am planning to purchase a two family house for investment purposes only. I have cash for a downpayment, however, I would prefer to have the property 100% financed. How do mortgage Companies work when it comes to investment property and the financing. I don't want to be blindsided and would rather be informed before heading into this. Also, what type of rates should I expect? My scores are between 665 and 680, my business partner's scores are all 700 to 710. We both make good salaries ($70K and $90K). Any advice would be appreciated.Thanks in advance! Link to comment Share on other sites More sharing options...
Recovering Attorney Posted January 30, 2007 Report Share Posted January 30, 2007 Never a borrower nor a lender be. Likewise, never a tenant nor a landlord be. But if you must, put your money where your mouth is. If property management or construction is not your business, tread lightly. Partnerships rarely last but they will have a better chance of succeeding if you both have something to lose that is more than your respective shirts. In my recollection, banks want big down payments for investment property. Make sure you budget for vacancies and repairs ( overestimate the latter) and remember taxes, insurance and interest can go up higher and quicker than competitive rents. If you really want the tax benefits of real estate ownership and the income stream without a lot of hassle, simply buy a REIT or find a limited partnership to invest in. Link to comment Share on other sites More sharing options...
mikeg Posted January 30, 2007 Author Report Share Posted January 30, 2007 Believe me, I've been researching and looking for an investment property since August 2005, but the way prices were in the Boston area, it was never going to work. Now that the prices are more reasonable, we found a couple that would cash flow.I am not too worried about the partnership not lasting, we have money in a bank account together that we set up back in 2005 and have been contributing to, but we would like to keep that for the unexpected. We're being careful, just don't know the differences between financing a two family for investment versus a 4,5,6 unit building (which I know requires 20% down).Just want to know what we should expect. Link to comment Share on other sites More sharing options...
IHateCAs Posted January 30, 2007 Report Share Posted January 30, 2007 Are you flipping the property or going into the landlord game? Link to comment Share on other sites More sharing options...
mikeg Posted January 30, 2007 Author Report Share Posted January 30, 2007 I'm getting into the landlord game. Looking for long term buy and hold properties. Link to comment Share on other sites More sharing options...
IHateCAs Posted January 30, 2007 Report Share Posted January 30, 2007 I hear WellsFargo offers very good loans for landlords looking to acquire an empire. They aren't as restrictive as other lenders and understand people with your objectives.Not from personal experience, just a guy I know who is a landlord with lots of properties always recommends WF. Link to comment Share on other sites More sharing options...
mikeg Posted January 30, 2007 Author Report Share Posted January 30, 2007 Thanks for the advice. I will look into it. Link to comment Share on other sites More sharing options...
sr28b Posted January 31, 2007 Report Share Posted January 31, 2007 I would not recommend Wells based on what you are trying to accomplish. Talk to Charles a/k/a Firstsource, he should be able to do 100% on a duplex full doc without the hassle that you would get from Wells. Get a GFE from your prospective mortgage company without having them run your credit report - just tell them your scores but don't give your SSN. Then talk to Charles. Link to comment Share on other sites More sharing options...
mikeg Posted January 31, 2007 Author Report Share Posted January 31, 2007 How do I get in touch with First Source? I've read posts by him and about him and it seems that he may be able to help me. Link to comment Share on other sites More sharing options...
sr28b Posted January 31, 2007 Report Share Posted January 31, 2007 How do I get in touch with First Source? I've read posts by him and about him and it seems that he may be able to help me.He is somewhat of a celebrity, but if you tell 'em CIC sent ya then he'll take your call.Call TOLL FREE at 1-800-356-3249M – F, 8 a.m. to Midnight, MT Sat., 9 a.m. to 5:30 p.m., MTcharles@bestmortgageinfo.com Link to comment Share on other sites More sharing options...
mikeg Posted January 31, 2007 Author Report Share Posted January 31, 2007 Thanks for your help. I emailed him. Hope he gets back to me. Link to comment Share on other sites More sharing options...
Recommended Posts