Investment Property Loans You’ll Wish You Knew About Sooner

Episode #943
Want to scale your real estate portfolio faster? These investment property loans can help. Most real estate investors get stuck early on in their journey. They buy some properties and build up some comfortable cash flow, but then…they can’t qualify for another loan. They’ve either reached the maximum limit on conventional mortgages OR don’t have enough income to qualify for bigger and better investments. So what do they do? Give up? Settle with a small rental portfolio? No, they use THESE investment property loans instead.
Jeff Welgan, our investor-friendly lender expert, is back to show us what we’ve been missing. From DSCR (debt service coverage ratio) loans that help you scale to more doors, to no-income-necessary investor loans that don’t look at your income, to business bank statement loans that’ll let you buy homes based on your business’s cash flow, these mortgages can help anyone in any position, purchase real estate faster.
If your DTI (debt-to-income) ratio is too high and you’re struggling to qualify for another mortgage, this is THE episode for you. We’ll discuss using your property’s rent to qualify for more, loans that get around DTI requirements, using your business to fund your deals, and the mortgages you should look into FIRST before you move on to more complex loan products. Stick around if you’re ready to scale faster!
Thank you to our sponsor, Rent App: the free and easy way to collect rent: rent.app/landlord
~~~~
Join BiggerPockets for FREE 👇
www.biggerpockets.com/signup?...
~~~~
Expand Your Investing Knowledge With the BiggerPockets Books:
store.biggerpockets.com/?utm_...
~~~~
Find an Investor-Friendly Agent in Your Area:
biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
biggerpockets.com/findlenders
~~~~
Find an Investor-Friendly Tax Pro Today:
www.biggerpockets.com/busines...
~~~~
Hear Dave on The “On the Market” Podcast:
link.chtbl.com/OTM
~~~~
Watch Dave on the “On The Market” KZbin Channel:
/ @bponthemarket
~~~~
Real Estate Podcast 939 - BiggerNews: 100% Financing for First-Time Home Buyers is HERE w/Jeff Welgan:
www.biggerpockets.com/blog/re...
~~~~
What Is Debt to Income Ratio? (DTI):
www.biggerpockets.com/blog/wh...
~~~~
DSCR Loans: What Are They And How To Get The Best Terms:
www.biggerpockets.com/blog/ds...
~~~~
Connect with Jeff:
Instagram: @jeff.themortgageexpert or / jeff.themortgageexpert
LinkedIn: / jeffwelgan
Website: bpinvestorteam.com/
~~~~
Connect with Dave:
BiggerPockets: www.biggerpockets.com/users/d...
Instagram: @thedatadeli or / thedatadeli
Show notes at: link.chtbl.com/BPRE
00:00 Intro
03:20 What is DTI?
07:03 Use Rent to Qualify!
09:10 How to Qualify for More
13:07 Investment Loans You’ve Never Heard of
20:59 No Income to Qualify?
25:15 Which Loan to Choose?

[@tz1731]

Truly awesome and not commonly known information. Looking forward to putting knowledge into action especially without a standard W-2. Thank you guys! Teresa

[@JC-qu7iw]

Dave puts out the best and most informative content in the BP world, hands down.

[@jeffthemortgageexpert]

He sure does! 😀

[@lambohayden]

This video is just what I needed!

[@davidrobinson1201]

Great Info!

[@jasonjosephlee]

Great video. Getting creative is one of the best things you can do as an investor. It pays off when you get creative.

[@jeffthemortgageexpert]

Thanks and it sure is!

[@sergiolauramaldonado3098]

Wow! Thank you for all this info! Very useful to scale!

[@jeffthemortgageexpert]

You're welcome and glad you enjoyed it! 😀

[@KrazyLury]

Great great information. Thank you

[@jeffthemortgageexpert]

You're welcome and glad you enjoyed it!

[@TennisTD]

My Schedule E loses a shit ton. Write offs. Bonus depreciated a bunch as well.

[@thestormview2147]

Thank you

[@jeffthemortgageexpert]

You're welcome!

[@nicolasluu9584]

Surprisingly, many lenders don't know about the forecasting rental income to qualify for the purchase. Seems like they are new to the industry.

[@zackgallik3164]

Can we get a show that focuses just on properties 4-10?

[@jeffthemortgageexpert]

Great idea!

[@priestesslucy3299]

4-10?

[@jeffthemortgageexpert]

@priestesslucy3299 Scaling up from 4-10 properties is challenging and planning is the key to success. Zack is asking for a show that goes into detail explaining the best practices and strategies. Does that make sense?

[@priestesslucy3299]

@@jeffthemortgageexpert it does, thanks

[@chibuezenwadigo7339]

Can we get the loan guys information

[@casasdenick]

Other loan guy checking in. Where are you located?

[@jeffthemortgageexpert]

My website and contact info is in the show notes and I'm looking forward to connecting!

[@reyessuarez4978]

Please share what brokerage are doing this loans thank you!!

[@jeffthemortgageexpert]

We are and my contact info is in the show notes! Reach out if you have questions!

[@eddiemalvin]

I'm curious why so many investors struggle to come up with the 15-25% down for conventional investment property loans. Are they just starting out? Are they seasoned investors but are running on razor thin margins with their existing properties? Are they holding properties with healthy cash flow but just want additional leverage so they can scale more quickly?

[@aprilvancleve9463]

Great information guys! Jeff- how does one who has passed the NMLS Safe exam get into the mortgage/lending field, in your opinion?

[@casasdenick]

Research brokers/offices that you’d be interested in working for and start reaching out. Where are you located?

[@aprilvancleve9463]

@@casasdenick Northwest Ohio region! Would you suggest heavily applying even though job descriptions ask for 2-5 years experience to start? Literally... Every job opening says that.

[@casasdenick]

@@aprilvancleve9463 definitely, especially since you’ve already passed your exam. There are much fewer LO’s this year than last, and while experience may be listed in job postings I bet you can foster a relationship and still get your foot in the door. This business is about relationships over anything else. I started at what I thought was my dream brokerage simply by reaching out to the broker directly.

[@jeffthemortgageexpert]

@@casasdenick Great advice!

[@monkmysterio]

i have the same issue!!!! i can handle more monthly payments and just scratch my head when i get rejected.

[@casasdenick]

Why did they say you were rejected?

[@monkmysterio]

@@casasdenick that income to debt ratio thing they said

[@casasdenick]

@@monkmysterio was this for an investment property? A DSCR loan might be the answer for you.

[@jeffthemortgageexpert]

My advice is to get a second and third opinion. Many lenders struggle when working with investors and some have trouble calculating income correctly or have their own internal underwriting restrictions.

[@monkmysterio]

@@jeffthemortgageexpert yep every bank is so different. They want to collateralize my renters basically, but since i have month-to-month they noted I have to switch to year long leases. I'll start shopping around. Thanks for replying!

[@stuartpenman6037]

At 9:32 you mention 10% down on an str strategy loan but not via a vacation loan. Can you clarify what loan product that is.thats exactly what I need to scale faster.

[@jeffthemortgageexpert]

The only option at 10% down is the vacation home loan and it is a personal use loan, not an investment property loan. Fannie Mae requires you to use it for some portion of the year for personal use and it cannot be used for long term rentals and there are no specific restrictions on short or mid term renting it while you are not using it for personal use. Freddie Mac, on the other hand, limits the max allowed rental days to 180 days. The 15% down option is the true investment property loan that allows us to scale faster because we are able to use the forecasted rent to qualify and it has a much smaller impact on our buying power (DTI). Typically the 15% down option will double your buying power compared to the 10% down option.

[@lawnbear5958]

Debt to income? Crazy! This whole time i thought DTI stood for down to intercourse...

[@yoshisaidit7250]

I need to buy property. I need more space for my businesses. I have a house I pay 1k/m but will rent out for 1700. My idea is to sell the house to buy the property. Would there be a way to keep the house and buy the property at the same time?

[@JC-qu7iw]

Use a heloc on the house you own so you can keep your house and buy your new property

[@casasdenick]

You can use up to 75% of the rent as income to help qualify for your new home loan.

[@Moving.To.Charleston]

@jeffthemortgageexpert thanks for this valuable information ℹ️ it’s interesting to learn about the different types of funding opportunities!

[@jeffthemortgageexpert]

You're welcome and glad you enjoyed it!