For most of us, financing goes hand in hand with real estate investing. Of course, there are cash buyers, but often they don’t mind refinancing a property to withdraw their cash to start another project. So, where do you learn your financing options? I suggest having 3 trusted sources. A commercial banker that is familiar with real estate investing, a mortgage broker with experience of CLOSING loans RECENTLY on non owner occupied properties, and watching a trusted site like http://www.mortgagenewsdaily.com/ to get current rate and market information.
I prefer working with a commercial lender as my primary lender for multiple reasons. First, they treat me as an investor, which I am. Second, they have more streamlined underwriting processes. This means that there is less chance for surprises as the loan moves toward closing. Third, I am not restricted by the mortgage limit that is currently in place in the secondary market. Send me a note to get some commercial lenders that I prefer to work with.
Now, I still like to keep in touch with the market through a trusted mortgage broker. They are more in tune with the current market restrictions, new loan products, and lending rules. For many new investors, this is a good place to start. Just remember to make sure that your broker has experience with non owner occupied! There are a lot of different rules in this sub market.
The third source is http://www.mortgagenewsdaily.com/. I like a lot of things about this site, such as the current market rates, and their explanation of WHY the market is moving the way that it is. I have not had luck with any of the sites that provide multiple bids on a loan. My experience has been quotes of decent market rates and overpriced closing costs.
