How To Get The BEST Loan Terms | Real Estate Investing

This video explains how to negotiate the best rates and terms on your next property loan. Chandler explains the strategy that he uses to get banks to compete so that he can get the best loan terms possible.
When purchasing a property, finding the best loan with the right rates and terms can mean a result in a gain of tens of thousands of dollars! In this video, Chandler shares a story of how he negotiated the loan terms on a 32-plex. He talks about the major frustrations that came while securing the this loan. Chandler goes into detail on the right way to negotiate with banks, how to get them to compete without backing out, and what negotiation points are most important for securing the perfect loan. He wants to share his experience negotiating loan terms and show you how to apply it. Whether you're in need of a home loan, commercial loan, or refinance, Chandler breaks it all down and shares his secrets to securing the perfect home mortgage or commercial loan.
#homeloan #commercialloan #loannegotiation
Want to learn more about getting pre-approved for a home loan? Check out this video!
• HOW TO GET APPROVED FO...
To learn more about a job opportunity doing door to door sales with Chandler, go to:
www.elitesummersales.com/
To learn more about Chandler David Smith and real estate investing go to:
www.chandlerda...
Check out some other videos if you want to learn more about investing in real estate, building a huge passive income or preparing for your own future home.
Want to see all of Chandler real estate deals?
Real Estate Portfolio
• Real Estate Portfolio
What is a Good Deal?
• What is a Good Deal? |...
Follow Chandler
INSTAGRAM
/ chandlerdavidsmith
Facebook
/ chandler.smith.73

[@ChandlerDavidSmith]

What tips and tricks have you all found helpful to get the best rates and terms on your loans!?

[@BeginnersTech314]

So this is all great advice but all the banks and Credit Unions that even if I shop around they cannot negotiate their prices are firm and they're not allowed to change them I have tried and they refused to change them is that something different in my area or am I just doing it wrong

[@ShihabPersonalFinance]

lie about what the competitor is offering

[@ChandlerDavidSmith]

Beginner's Tech I’m sure there are some banks and credit unions that feel that way. I’m guessing you just need to shop them out more. Find other options, there’s always banks that are willing to work with you if you find the right ones. Especially if you look strong and your deal is strong

[@robertoinvests]

Credit needs to be above 720 on commercial or personal or both? Nice job!

[@robertoinvests]

Would have been nice for seller to Cary 100k interest only and still primary loan at 3.85. Is it cash flow +? You have incredible content thx!

[@JackDuffley]

Hi Chandler - maybe you've covered this in a previous video, but what do you do to protect yourself from liability, especially having 100+ units now? Are all of your buildings in LLCs? Or do you keep the loans & property in your name and opt for umbrella insurance instead?

[@andrewlicht9168]

Congrats on 20k subs! Keep the genuine content coming, you da man!

[@JamesHollowayYT]

Right? Chandler aspires me to be great on my KZbin channel as well talking about real estate investing!

[@JC-ef5bs]

Pershhonal lol thanks for the great content as usual Chandler 🤜🏻

[@prestonb4301]

Dude.. meaningful information, straight to the point and not packed full of ads.. Subscribed!

[@ddmm3979]

Thanks Chandler! I'm literally struggling with banks right now trying to close on my first fourplex. Never giving up though. Thanks for all the knowledge you give us!

[@JamesHollowayYT]

NEVER GIVE UP! You only lose if you give up! You will be so proud of yourself after everything is done, and you're cash flowing! I know I was with my two properties :)

[@samuelchimezie]

Message me I do private lending and can close the deal fast 💨

[@Picwajzzz]

Pershonal loans ARE the best!!!

[@JamesHollowayYT]

Absolutely! Until you can't get anymore :(

[@JamesHollowayYT]

Greg S 😂😂😂😂

[@Picwajzzz]

Greg S I respect that and think that you completely missed the point here

[@Picwajzzz]

@@gregs3393 attaboy

[@mike_lives]

Ok meow, enough of the shenanigans. Main thing is that we know pershonal loans are best

[@jamesallenrealestate]

Good practical advice! Especially for those looking to get into multifamily or other commercial real estate.

[@nick3720]

Fantastic vid man thank you so much. I am in the middle of shopping for loans right now and this was very helpful.

[@thatgvb]

Pershonal loans! Love the content Chandler :)

[@adiosmiamigo]

Chandler, whats the point of having them not pull your credit? Once your credit is pulled by one lender, other lenders pulling your credit has zero impact on your credit score for residential loans. Is it that same or different for commercial loans?

[@laly7377]

Should you look at a property/talk to a realtor first before getting pre approved for a loan? And does this work with a USDA loan, or is your advice is ALL loans in general?

[@tenplus1025]

Badass interest rate btw!! You are set for life now bro. Congrats!!!

[@JamesHollowayYT]

Agreed. That interest is insane!

[@etherealnine]

Chandler, what's your opinion on,as a first property, buying a ready to live duplex (it will be owner live in) that needs little to no work but costs a bit more vs buying one that's going to need to need some time and money to fix up?

[@shujayethossain6554]

Hey Chandler! I am a first time home buyer. Should I go to Banks for mortgage loans namely Chase and Bank of America, or other credit unions? Which is better? Thanks

[@ChandlerDavidSmith]

Small credit unions!

[@bradleywilshere8017]

There’s an ongoing grant for home mortgage, home repairs and real estate investment.. call or text [phone]

[@thomasnoonan2039]

Thanks for all the content! 1. Do you know if the ten personal loan limit also applied to VA loans? 2. Are are your properties in the same geographical area, and if so, are you worried about your whole portfolio being subject to how that area performs?

[@johnnyb33good21]

VA does not limit how much you can borrow from your lender to finance a home. Effective January 1, 2020, there are no county loan limits for Veterans with full VA home loan entitlement. However, county loan limits still apply to Veterans who have previously used, and not restored, their VA home loan entitlement to purchase, refinance, or construct a home above $144,000. Your entitlement can only be restored when the property is sold, or the loan is paid-in-full. If you want to purchase another home without fulfilling these criteria, VA will only guarantee your total outstanding loan amount up to the county loan limit of the home you wish to purchase next. I live in Arizona and the loan limit is $510,400. I was able to buy two fourplexes here. 1st was $245,160 and 2nd was $313,000. For the 2nd I had to come up with a down payment because I didn't have enough entitlement. however, now I have to refinance out of the 1st 4plex to restore my entitlement in order to buy a 3rd 4plex but depending on where you live and the cost-of-living you may be able to get more properties From reading the VA lending guidelines I haven't seen anything saying you can't have 10 personal home loans

[@thomasnoonan2039]

@@johnnyb33good21 Great info, thanks!

[@BirdgangAndBats]

You can have multiple VA loans as long as 1) you have enough entitlement to guarantee the new loan 2) you plan on occupying the home as your primary home. As Johnny said, if you don’t have enough entitlement, you would be required to come up with some money, depending on the remaining entitlement. The terms are still very favorable with VA loans, especially if you receive VA disability. There’s also ways to leverage the equity on your primary home, whether it’s a cash out refi (you can even do this with a VA loan) or a Home Equity Line of Credit in order to come up with the full down payment on an investment property. If you are the Veteran, thank you for your service.

[@brad265]

Great video Chandler. What banks are you finding have been easiest to work with and close in a reasonable timeframe for commercial?

[@RT710.]

Thanks again Chandler! Question for you- before I close should I be telling the banks that I plan to move out and refinance my first single family after a year? I don’t want them telling me I need 20% if I said it

[@CaseyBurnsInvesting]

Great tip (getting multiple banks to tell you what the rate will be locked in at without pulling credit).

[@muxi0121]

Can you do a video on how you select a property management company for the 32plex?

[@pathtobillions8070]

Chandler, another great video! I can't wait to start investing.

[@JamesHollowayYT]

Why not now?!

[@pathtobillions8070]

@@JamesHollowayYT I'm currently working on getting in the financial position to be able to do so.

[@JamesHollowayYT]

Path to Billions good! It definitely pays off! I generate $1100/mo from two properties! I talk about my experiences and knowledge on my KZbin channel!

[@jnslzr]

Thank you for the info, but it seems mostly like general shopping rules. Being here in the US for around 2y and trying to buy a small house, let me tell you that last month I got a 2.80% from BofA, which I canceled four days before closing b/c of this whole corona situation. This process was learned the hard way, b/c this is my 2nd attempt to work with BofA, the first time was a nightmare, nothing worked out and it fell down and I lost the inspection money. I swore never ever again to work with BofA, but I did it again. Anyway, my questions would be more related on your experience, would you say it's "better" to work with big or local banks? and why some realtors try to push to use their preferred fin partners? Thanks!

[@rcruz401]

2.80% Interest rate would have been a HOMERUN. You should have stuck with it and not let this coronavirus determine your future goals and outcome. This is the time to capitalize

[@johnnyb33good21]

Perfect timing to watch your video. I'm currently refinancing two 4plex's. Both were purchased at forclourse then moved into both and did VA Cashout refinance. I'm now refinancing out of the VA home loan on the 1st 4plex I used to live in in order to restore my entitlement so I can buy another 4plex and live in it. Its gonna be replaced with a conventional NOO (Non owner occupied) loan and I was quoted 4.674% and the 2nd 4plex I'm currently living in I'm doing a steamline IRRRL (interest rate reduction refinance loan) and I'm being quoted 3.125%. I'm going with the PAR rate where I don't pay any closing costs out of pocket.

[@4hipep2]

Johnny Mack That’s awesome man, quick question, did you purchase those in cash originally, then refinanced?

[@johnnyb33good21]

@@4hipep2 I used a hard money lender that charged 10% interest with 25% down payment. 1 yr loan term $900 total fees

[@stevencornwell5934]

Great IR%. I'm buying a house this summer near where I go to school. We are using a traditional mortgage. After we are done school we will refinance under a commercial loan and put the property under an LLC and use as a rental.

[@Lanainvestor]

where did u get your loan from ?

[@richardjordau]

Which banks are okay? Chase is okay?

[@relentlessgrowth4149]

I know that I like having the one primary lender and then a couple of backup lenders who are mostly there to keep the first one accountable on providing the best financing. Of course, sometimes the secondary/tertiary financier may just offer the best option. I'm also part-time on real estate - so this means less time spent developing multiple lender relationships or filling out paperwork.

[@JohnDoe-pe6iu]

Hello - I have secured a commercial mortgage at 3.5% 10-year fixed ARM for a 8-unit multi-family apartment. Any thoughts on the terms in today's market? Thanks.

[@aaronross6521]

What a killer deal man! Congrats.

[@JamesHollowayYT]

That interest rate... amazing

[@Toolray6985]

Chandler - if you are having a hard time finding comps, can you use the 1% rule in reverse and say my 1500 in rent would make this triplex worth 150,000? Thanks

[@nomadicbynature3836]

No...only on 5 or more ..fourplex or smaller doesn't work that way

[@kstevenson3504]

Chandler how do you get an appraiser that works for all of them? That means you can pick your appraiser. I thought they picked random appraisers.

[@JonteHall]

love these videos of yours coming from a california real estate broker perspective so much value

[@adrianespinal3294]

Question. How do you deal with all of the hard pulls on your credit? Do you strategize to where you only get 2-3 loans per year?

[@briansurfer8625]

Adrian Espinal with strong credit it doesn’t hurt as much as you think. I have a client right now I’ve pulled their credit multiple times this year for multiple transactions, and his credit has been around 750 every time.

[@onscar]

Man, you are inspirational!!

[@hbpictures660]

What are the risks to paying contractors under the table, would love to know what you think on this

[@MJ-ge6jz]

@Chandler, With your 32 door multi-family loan, was it a 20 year fixed? I hear that is the longest you can lock in a loan for commercial. After 20 years I assume you can refi again.

[@TheSONofOL]

I'm going commercial on a 4plex because I don't have sufficient credit to get better loan terms but I do have a substantial down payment to qualify for a commercial loan.

[@JamesHollowayYT]

Gotta do what you gotta do! A little bit of a higher interest rate is better than no deal!

[@rcruz401]

Fourplex is still Residential until you get to 5+

[@tamasb8926]

Had absolutely no idea you can have 10 loans going at once. So are my lenders not concerned about me not necessarily having the funds to cover all these monthly payments, or is it that they are in the deal willing to take the same risk that i am, with the rental income?

[@aaronross6521]

Tamas B if your cash flow from the property is greater than the monthly payments, then the banks look at that as an income earning asset and can use that property as leverage as well. Granted there has to be a time factor to prove that the property pays for itself.

[@stevenw373]

PERSHONAL!!

[@cihatecicek]

100 congratulations ..

[@brickriver9627]

Loved the cat meme

[@JamesHollowayYT]

Same! I literally lol'd!

[@zhidong8070]

I am here scratch my head to get anything under 6% rate for commercial loan ..all the bank I have talked to ask 6-7% rate I don't know if that is area specific or not

[@rcruz401]

My guess is, In order to be in the position with a bank to be within 10days of closing, You would have already signed papers to lock in rate which changes daily And/or had a credit inquiry along with that. Unless, you are able to back out and go with the 2nd or 3rd option that is also going thru the process Simultaneously.. BUT more then likely, you would have 2 pissed off bankers that consider you had wasted their time..

[@tenplus1025]

Nice!

[@TreesOnTheBeach]

Chandler, can I ask what banks do you prefer for your personal loans?

[@rdk2086]

shouldnt you just get a mortgage broker who pulls credit once and shops like 50 lenders?

[@quedogkualum]

Robin de Klerk thats what i was thinking.

[@NoWhereButEverywhere]

Amazing

[@ChandlerDavidSmith]

Ernesto Guzman Pacheco thanks!

[@toastedwithbutter28]

I just realized I watch too much of you and I don’t mind it

[@tenplus1025]

I don’t know where this relationship jazz began, Tony Robbins, some personal development guru, etc., but banks piss me off with that fantasy. If numbers are there, loan me cash! Last deal I worked on my current trailer park development, the bank said my dad, who has a million in cash and home etc., no debt, was holding me back from getting the land loan. They told me, who has a mortgage, rentals and student loans over a 100K, debt out the ass, that I’d qualify by myself. I told the loan officer, “how the fu%# does a dude in debt get his loan chance harmed by a co-signer with a mill and no debt?” He looked at me like I figured out time travel sheesh

[@bwenzin]

I got offered 1.04% the other day. 😅

[@Dominic-tq1nl]

What bank did you use for the Commercial Loan? As what Bank do you find it easy to work with for your single family rentals?

[@CaseyBurnsInvesting]

You changed the intro music 😢

[@raeginaweber1298]

Next time I steal this deal from you

[@evanr566]

Pershonal

[@ShihabPersonalFinance]

not sure why you chose that face for the thumbnail

[@kswank9965]

Hi Chandler, I have a question for you can I send you an email? Kind regards, Kay