What Every Investor Needs to Know about Loans for Rental Property

[@freedom_mentor]

Every successful real estate investor has a mentor. Get your mentor here: www.freedommentor.com/apprentice

[@BorderGuards]

If a conventional loan is not a bank or CU loan then what is the definition of conventional loan?

[@freedom_mentor]

@@BorderGuards Conventional means that the loan is sold to Fannie/Freddie on the secondary mortgage market. A local bank / credit union loan is one that a local bank or credit union originates and holds the paper and services it, rather than selling on the secondary mortgage market.

[@mchet9699]

What do you think about a HELOC?

[@freedom_mentor]

@@mchet9699 I love them, so long as you are using them for short term capital needs.

[@LK-pc4sq]

@@freedom_mentor Long time ago, I tried to get a loan against a investment property and was turned down because I did not have the income then to buy the properties. Now the homes have gone up 800% since the 1990s :(

[@simonmartinez8480]

I said it once, I’ll say it again , you da Mannnnn ! I started watching your videos in 2017 with a net worth of -$30k (college loans) . 2 flips and 10 rental properties later with your videos, I now have a net worth of $800k and I just turned 29 . I still drive my old Chevy 2001 Silverado from the beginning and recycled all my profits back into investments. Told myself I would not buy a new vehicle until I hit 1million. A quote you said in one of your first videos stuck with me “you don’t have to look rich, you don’t have to act rich, you can just be rich !” . Near a millionaire today and no one in my family knows . Mother has a clue I’m making money but not 100% sure lol.

[@levertis1987]

Great job man I’am happy for you keep up the good work

[@FreeMindxx]

This is motivating. I’m 22, decent credit but I don’t have proof of income so I just don’t know how to get started

[@Sakrific3r]

Where are you today in your journey? New truck yet? 🤞

[@simonmartinez8480]

@@Sakrific3r Nope still have the same truck (Chevy Silverado 2001). Only this time now I just recently bought my first apartment complex this past December (17 units). Once our remodel is complete, we expect it to bring in roughly $6000/mon NET after all expenses paid. After the remodel I am considering finally buying a new truck just for the tax deductions I can get with the new "bonus depreciation" IRS tax law. Not to mention my net worth will for sure be over the $1mil mark once the remodel is complete. (currently at $955K before the remodel) But we will see what happens, I kind of like having stealth wealth. Its just a Vibe knowing you are the richest person in the room and nobody would ever guess.

[@Sakrific3r]

@@simonmartinez8480 that is so awesome!!! Following you on following the dream. Thank you for the inspiration. Kevin

[@market-climbing-stockchart3279]

I spent hours researching things and talking to some people online, then watched this video and this was way more informative than everything else I found online, great info

[@earth2survival922]

Agree and it is an eye opener. Most of the people on here are full of it or not as savy as this man. He's a blessing!!!

[@weschristensen]

As a broker, the bulk of my business is non-QM. I’ve been surprised to find that you nailed it, Phil. Most brokers don’t want to mess with non-QM. The most popular product I’m closing in non-QM w/ investors is the DSCR loan. We don’t look at income at all with DSCR. The property qualifies using a 1007 appraisal to determine expected cash flow and closes faster than most other options.

[@BrianWingard]

Just watching this video now and saw your comment. Out of curiosity what is the appraisal process like? Do you hire a local person to view the property or do you simply look online for the value? Trying to educate myself some since I am in the market for a refi using dscr.

[@weschristensen]

@@BrianWingard oof just seeing your comment now, my bad! We order a local appraisal and an appraiser gets rental comps and defines an expected rental income. Some of my lenders will allow you to use Airbnb income history or AirDNA numbers if the property was already being used as a short term rental. Depends on the scenario but typically the appraisal is done in person.

[@happycamper4483]

Do you lend in Illinois for rental property?

[@weschristensen]

@@happycamper4483 I do indeed 👍🏼

[@zoerpm6493]

Quick question, What are the credit requirements?

[@seanlovesrealestate]

Portfolio lenders are definitely the way to go if you plan on scaling your rental portfolio. A couple things to note are that different loan types also have different origination and processing fees associated with them and that different lenders may have different lending requirements (i.e. min loan balance, DSCR, and prepayment penalties). For a new investor, it's definitely worth the time to speak with AS MANY lenders as possible when they're just getting started so that they can shop the best rates and terms.

[@jamesscobba7001]

Love Sean videos!

[@jamesmathiasch4864]

Hi Phil, I own Landmark Capital Mortgage in Arizona, I'm a Non-QM Mortgage Broker and we specialize in Investor Loans. I'm an Investor as well. Here to help your subscribers. Thank you!

[@goodfella998]

What is the typical rates for 800 credit scores?

[@ednasalinas5568]

Do you do cash-out refinance or a HELOC for a rental property (Paid off) that is under a LLC? I own multiple properties, most with mortages. For this cash-out refinance, the property is paid off. Would the multiple mortgages in my portfolio affect my chance?

[@happycamper4483]

This mortgage company is Closed.

[@elenabeckford8300]

Thank you for this info. I’m glad I found your content. There are other KZbinrs don’t talk about this important things.

[@AllNighterHeider]

That was great. You stroked my confirmation bias and outlined the plan that I had come up with to get into residential real estate.

[@MichaelFoxFamily]

Great video Phil and thanks for the resources! After 15 years as a realtor I'm still learning important "signal" in all of your videos!

[@hannahnguyen3142]

Your channel offers so much free helpful info. It deserves way more among all real estate investing channels now.

[@R3MARKable1]

Sooooo much good info and advice here Phil. Thanks again! The various scenarios provided were essential to getting my head around these financing options. You really opened some doors for so many wandering. I was hoping you would offer recommendations to Lenders, and you did! Cheers!

[@flyingsun510]

This is one of the most informative videos that I've ever watched on rental property loans. Thank yuo, Phil!

[@bennybronco76]

An absolute WEALTH of information. Absolutely invaluable. And thanks for answering the question about the down payment most of these podcast fail to mention that. There's no way around it. I have heard mentioning of crowdfunding if you care to elaborate.

[@freedom_mentor]

Crowdfunding initially had huge momentum but then it suffered some major setbacks due to piss poor underwriting departments that didn't know what they were doing and bought the wrong properties at the wrong prices and with the wrong management. Whether the source of the funds is 1,000 people putting in $5,000 or an investment fund or private bank putting in $5MM; the underwriting is the key. There has always been more money for real estate than good deals. Sourcing money from the crowd was never needed to begin with; we already have all the money we will ever need for real estate. What's missing are good deals that are purchased and operated by smart investors.

[@ddubsr5886]

When discussing cons of moving real estate out of your name and into the LLC you overlooked the most important: triggering the due on sale clause

[@freedom_mentor]

I have never seen this actually happen to anyone, ever. If the LLC is 100% owned by the very same person, in my experiences over the past 20 years, no lender has ever enacted their rights under the security instrument to call the loan due.

[@amoszook3775]

You are a great speaker. The info u presented has changed my life.Thank you so much.

[@lostislander253]

this was the EXACT video I was looking for

[@freedom_mentor]

Great to hear! Any other videos you'd like to see?

[@josephmihalak1904]

Phil is always so clear on topics. You can tell he is so well versed on RE investing.

[@k.lynnecollier7763]

Thank you for covering that last few minutes Apple Rabbit Trail. You just took away all my question marks.

[@freedom_mentor]

Great! Glad you found that the clarity that you needed. Let us know if you have any other additional questions.

[@Youllneverknow143]

thanks for the info Phil. You are always a go to for detailed information not found elsewhere.

[@Eye-Wandering]

SO i cant use this for my down? or you can use this but you have to earn the cashflow to pay the down in anytime? someone please help me understand, i am a slow learner.

[@ton4real474]

Nobody breaks it down better than Phil.

[@OreliaLatrice]

Wow, thank you! This video is jam packed with awesome information.

[@channel6sandiego]

Hi Phil can you point me in the direction of twice moved portfolio lenders for manufactured homes? Thanks

[@freedom_mentor]

I cannot. I am not aware of Portfolio Lenders specifically for manufactured homes.

[@Bluewh174]

Wow ..what an energy and positive posture ..awesome Phil👍

[@funinchico84]

Amazing advice as usual. I just went through this a week ago on our first vacation rental property. Conventional loan in Florida. Ran into every problem mentioned regarding LLC.

[@larrycox697]

I will be brief with what I do. I'm a financier building my profession around business professionals like you with hopes of synergy for the growth of each other's business. Should you be looking for finances to sustain your business/personal interest, kindly look into 52G Finance LLC. We specialize in personal loans, business loans, project finance e.t.c with a very competitive/low rate to local and international borrowers(Your location is within our jurisdiction). Our terms includes great features to help stabilize your business before repayment. I can send more information if interested. The rate are welcoming I assure you.

[@JuanGomez-yi2xj]

Do you have this in Canada?

[@jhitchman1]

At a recent Real Estate Investor meeting I met a guy from TAM Lending. Sounds like they are doing the Port Folio lending as he explained it just like you did about focusing more on the property than the applicant

[@freedom_mentor]

Looks like a mortgage broker that may originate Non-QM loans; they don't appear to be a Portfolio Lender.

[@cesarmelo4559]

Hello Phil thanks for this video, How can I use land I already own to get a loan to build rentals on the same property

[@thomasreto2997]

So, a question for you...we payed 20% down and needed the higher investment property fixed rate 30 year loan...the question is “After four or five years go by, we decide to move into our residential rental triplex and rent the other two units out short term to tourists and local rental laws CHANGE and BAN short term rentals...Are we “Grandfathered in” ? Does the county have to accommodate us or does the lender have to compensate us?

[@freedom_mentor]

(1) If you make your 3 unit your primary residence, when you move in, refinance into an owner occupied conventional loan to get a lower interest rate (and a lower down payment). (2) The short term vacation rental question is more complex. You may NOT be grandfathered in. I wasn't on 5 of my vacation rentals in Daytona Beach. I could have sued the City, and perhaps after 4 years of litigation, I may have won. But I could have lost too. So I didn't take them to court. The Achilles Heel of short term vacation rental investing is if you are doing it in an area that legislators in that region are trying to ban in.

[@thomasreto2997]

@@freedom_mentor thank you for the information Phil. My wife and I bought a house with 2 separate ohanas on the property. It was not our intention, but, as it turned out, we needed to finance as an investment property because the state of Hawaii required this because of the fact that our primary residence is not on island. As it has turned out, we have a great property manager whom found us great long term Tenent’s to rent and live in the house for the few years before we move. Someday we wish to cater to tourists whom visit the area, but we have come to find, that Hawaii’s local government is in bed with the large hotels that will oat likely present another problem for us to find a way around in the future..🌈😃🤙

[@coolfiregirl2003]

What about for commercial loan like for a multifamily property, without experience. I want to invest in multifamily but most lenders are requiring experience

[@Dumeme510]

Phil, great stuff. Are there porfolio lenders you can recommend in California? Thank you for the work you do.

[@neva-surrender]

But where do you get the money to do repairs?

[@pablocavero1108]

Please, can explain about VA loan for investors.

[@boomanati8772]

Do your lenders you recommend service South Carolina?

[@freedom_mentor]

They are not "my lenders". This video teaches you the fundamentals of how lending works for rental property. If you apply what was shared here, you'll be able to find the best loan program for your individual situation, regardless of which state you live in, in the United States.

[@sudeepkhadka6458]

Awesome Video! Loved the way you presented. Great!

[@eugeneeugene3093]

You’re a life saver Phil

[@freedom_mentor]

Thank you! What was most helpful about the video for you?

[@craiglis7868]

Phil, What’s your recommendations for someone with no W2 job who wants to get into 5+ units multi-family buy and hold? I can come up with down payments. The property will cash flow to cover expenses and debt service but I’m running into a lot of “No W2, no loan” responses from lenders because I don’t have a job. I own 1 rental and my primary residence, both free & clear. No credit card or any personal debt. Somehow this doesn’t matters to the lender.

[@freedom_mentor]

Have you contacted any Portfolio lenders?

[@craiglis7868]

@@freedom_mentor thank you Phil

[@jo69817]

For conventional, what about buying it in the personal name and then Warranty deeding it into the LLC, that way the title insurance policy remains and doesn't get voided like with a quit claim deed?

[@freedom_mentor]

Maybe. Most title insurers will not issue title insurance when there is a mortgage lien recorded against the property; while in theory, the title agent could simply insert an "exception" to the title policy; almost none of them will.

[@AberrantArt]

What do you suggest to canadians who can only get a fixed rate for 5 years on average?

[@freedom_mentor]

That's all you can do in Canada so that is what you have to do.

[@idkmybffjill9682]

My local state employees credit union is a portfolio lender 🤗

[@idkmybffjill9682]

0 down with them on primary residence loans too. No minimum time of residency before you can move out and rent it out

[@freedom_mentor]

Nice!

[@1973superdad]

I always bought rentals on 10 years loans with the goal to pay them off. Now you say dont pay them off.....ill need to see your video on that. Ultimate goal, build networth and cash flow...

[@brendayourlender]

Thank you for the information Phil. This video was timely for me. I have recently been looking to refinance one of my properties. I appreciate you so much!

[@larrycox697]

I will be brief with what I do. I'm a financier building my profession around business professionals like you with hopes of synergy for the growth of each other's business. Should you be looking for finances to sustain your business/personal interest, kindly look into 52G Finance LLC. We specialize in personal loans, business loans, project finance e.t.c with a very competitive/low rate to local and international borrowers(Your location is within our jurisdiction). Our terms includes great features to help stabilize your business before repayment. I can send more information if interested. The rate are welcoming I assure you.

[@graceluo8354]

@@larrycox697 what is your email address? I am in Canada.

[@amgcook1081]

Great info! You need cash to start out with. Wont be able to get around the 20%.

[@wolverg0174]

Wait , how about down payment? I have a few banks that would do a 10% down for a rental residential home at prime rate. If I go with a credit union would they do a 10% on a rental or they wold ask for the 20+ down ?

[@freedom_mentor]

20%+

[@ChristopherEverett]

My credit is shit. Was wondering if you know anyone I can talk to about buying a handful of properties and some with some revos needed.

[@freedom_mentor]

It’s not about credit, it’s about how much you have to put down and how good the deals are

[@uninouayisyen9988]

where I get money for loan for down payment?

[@robbrownstone]

If the demand is healthy and people are holding longer than ever then why do you think things will change in 6 mos to a year? Interest rates going up? Long term holders will start selling again?

[@mkmitchell4028]

Hey Phil thanks for what you do, my problem is understanding asset lending which gurus teach is based on the property and not the investor i have found that to not be true my credit was the deciding factor and then i was told asset is hard money. iIm 62 yrs old retired cant find that one opportunity just one to gain credibility. Its frustrating when nothing is guaranteed.

[@freedom_mentor]

How large is your down payment? How well does the rental property cash flow? What portfolio lender are you contacting?

[@wabajack8250]

Would a portfolio lender work with someone getting a first rental property?

[@freedom_mentor]

Absolutely

[@AaronCMounts]

In 2023, no bank is making loans for rental properties for decent rates. It's all high interest rates. This was great advice for the time when rental property loans could be found 3-5%. Those just don't exist anymore.

[@jairbarcenas7308]

This is wonderful and insightful. Thank you

[@freedom_mentor]

You're very welcome. Are you investing in real estate right now?

[@petuniasprojects839]

Hi Phil, Thanks for the video. I checked google reviews for Finance of America Commercial and was surprised to see it got a rating of 2.3 our of 15. Appears they give approval letters only to pull out when in escrow. Can you comment on that?

[@freedom_mentor]

Don't work with FoA Commercial. They even screwed me! They were really nice to me for a while. I gave them my recommendation on this video. And then afterwards, they have been awful. Don't work with them.

[@trevorreed4711]

Mortgage Broker here, I'd argue DSCR has rates comparable to current (in some cases better) than current conventional lending.

[@freedom_mentor]

Isn’t that wild? First time in my 20 years in real estate that investor loans based on the performance of the property can have better terms than conventional loans based on the credit worthiness of the borrower.

[@rogerl8488]

Hi Phil thank you for video!! So I have 6 free an clear rental thats being rented an I am still a sol prioritship what do you recommend I do at this point? I also own a piece property city water an sewer in a great location for apartments. Do I go borrow money against these 6 homes an with who an do I switch to a llc or scorp or stay where I am at? Thank you!!

[@freedom_mentor]

Watch this video first: kzbin.info/www/bejne/bGXXgoeKm5KopKs

[@bellallchome8595]

Hello! Do you know where can I find a loan to build a vacation home in Cancun? I live in US. I am a foreign in Mexico. I own 3 lots in a vacation development there.

[@MSHairCandy]

Your incredible!! Question, with local banks or credit unions can you name some that do construction to permanent loans on a quadplex?

[@josedominguez-zd9vk]

Hi Phil. Very interesting and educational video. I am considering start as real estate investor and I have a question. How Portfolio Lenders use Debt-to-Income (DTI) criteria to lend money? When the plan is create a big portfolio, Personal incomes plus cash flow from same properties are not normally enough to get a good DTI ratio, and if each property need to get a good DTI itself with the rental incomes, the mortgage should be around 25% of the rental incomes, and that is very difficult. I would appreciate your comments. Thank

[@369PennState]

Hi, Phil. Would a Portfolio lender allow the loan to be in my LLC name?

[@freedom_mentor]

YES!

[@369PennState]

@@freedom_mentor Thank you for your help and such GOLDEN content, Phil. You are a blessing to many. May God continue to bless you.

[@rachellachamawi6343]

If you buy your rental cash, can you estimate the interest for the money you paid and write off?

[@freedom_mentor]

No. Do a cash out refinance. Don't won your rental properties with no loans on them.

[@MattyGgardneR]

Phil, what types of lenders will do a blanket encumbrance? How many properties are the minimum for a blanket encumbrance?

[@freedom_mentor]

You don't want to structure a cross collateralization loan. You want each loan to be individual to the property, so that you can sell each property without having to get permission from the lender each time.

[@ronniewooldridge9870]

Hello. Would your contact at Finance of America be good for Texas or should I look in Texas for a portfolio lender??

[@freedom_mentor]

Yes. Give Gerry a call.

[@BritBrat444]

I want Phil and Ken McElroy to do an interview together!

[@brendayourlender]

good idea

[@HashP100D]

add Tom Wheelwright too

[@nordiawilliams9322]

I agree.

[@williemudabeti3708]

Mos def

[@mr.g937]

Let's be honest, they aren't in the same ball park. McElroy's AUM and industry reputation dwarfs this guy's.

[@JJTrades_X]

Thanks Phil, this clears up a lot of things. Information gold.

[@miguelmaldonado4492]

Amazing video !! Very valuable information!

[@freedom_mentor]

Great! Glad it was helpful and informative.

[@ministeriounamanoeneldesie1615]

Hey Phil God bless you and your family and everything that has to do with you.

[@j.a.c.3776]

Excellent information, thanks Phil!

[@TedPert]

very informative phil!

[@freedom_mentor]

Thanks Ted!

[@malindagillespie8722]

Good realistic info Phil. Thanks for the lenders.

[@vacuumbed1]

Hello Phil, great video and thank you for posting. Question. Are there creative ways to finance a new construction single-family home other than a construction loan? I look great on paper except for DTI due to losses from my rental properties.

[@freedom_mentor]

Not that I am aware of. Construction loans are higher risks for lenders because they know, all too well, how difficult, complicated and risky developing a new house is; all the delays, unexpected problems, etc. I would NOT recommend building new. Buy existing and remodel.

[@karakidder1545]

@@freedom_mentor I’m building new but having guest houses attached to Airbnb here in New Orleans you can really remodel because a lot of properties are historic and can’t be change … city regulations

[@NetflixButFree]

look into tax harvesting for losses

[@lamontcorprew1146]

I’d like to know more about your apprentice program.

[@freedom_mentor]

Thanks for reaching out! You can apply here: www.freedommentor.com/apprenticeprogram

[@ruqhayam1214]

Please forward me the link of the best loan broker doe portfolio loan . I haven’t seen in the comments Thanks

[@freedom_mentor]

Mortgage brokers are local to your state and even your city. You'll need to search for those locally.

[@ae96nupe]

Just what I needed. Thank you!

[@anthonyparadiso8573]

Thank you so much for this informative and clear video!

[@tedpert8786]

Thanks Phil!

[@Tony170st]

Thank you so much I appreciate this video, great content great info.

[@russlavalle]

Hi Phil, Love your super informative videos! I have a question about the subject in this older video. We're thinking about buying a single family home vacation rental. Current interest rates are going crazy compared to a year ago. I see 4%, 5%+. What do you think about doing a cash-out refi on our primary residence? I can get a 5/5 ARM with a rate of 2.65%. We owe about $215,000 on the home which is worth about $1.5M. Thanks! Russ

[@freedom_mentor]

It sounds like you have a tremendous amount of potential capital to deploy into real estate; whether you did at 5 Year ARM or a 30 year fixed rate, you could pull out a substantial amount of capital from your primary residence to use as a down payment on an income producing property that had a 70% LTV first mortgage. So you could theoretically purchase a $2M+ property (or several properties that add up to that amount). Money isn’t your problem. I would guess the bigger issue is finding highly productive income producing properties to purchase as explained in this video: kzbin.info/www/bejne/bGXXgoeKm5KopKs

[@russlavalle]

@@freedom_mentor Thanks for the quick response Phil! I hadn't thought about using the equity as a down payment vs buying a 2nd home outright. Even more investment potential. :-)

[@psych007]

But Phil, you don't need the protection of an LLC if you have adequate insurance (landlord, umbrella, etc)

[@freedom_mentor]

How many times have you dealt with insurance companies? They can be AWFUL! They have teams of brilliant lawyers that spend all day coming up with ways NOT to payout claims; whether a property specific policy or an umbrella policy. And they always have limits. Owning each property in its own LLC is the best umbrella policy.

[@samirvasani]

Yes that's the route I'm going to grow my rental portfolio non qm

[@jamesscobba7001]

This is gold info!

[@freedom_mentor]

Thank you! Have you had a chance to watch any others of ours?

[@genegene9144]

Hello I have 2 single family rentals that are free and clear, no loans. Im looking to purchase my next rental property, which method or loans would you suggest? Cash out refinance, Heloc or what.. I have a 695 credit score.

[@freedom_mentor]

It depends on your ability to identify new opportunities. If you are really good at that, you would do cash out refi's on both; if not-so-good, perhaps cash out refi one of them and then do a HELOC on the other. If you are absolutely horrible at identifying new opportunities, then perhaps you not cash out refi until you get closer to finding something.

[@dataguy7013]

Phil, can you talk about buying properties that are old, like 1945 construction, what about Asbestos and lead issues?

[@freedom_mentor]

I own several properties that were built before 1945. They don't make them now like they used to! I love older properties. Asbestos siding is awesome. It's much better than wood or vinyl siding. As for lead based paint, since you just paint over everything, unless you test, you never really know if it was lead

[@terysantos2810]

Thank you!

[@blueplanet1422]

Godday i am fr jamaica need ur guidance

[@freedom_mentor]

Hello!

[@taraspeed5421]

Phil my husband and I just purchased our first home that we currently live in. We would like to now purchase a duplex how long do we need to wait if at all to get a loan for a rental property?

[@freedom_mentor]

If you go the non-QM or portfolio lender route, right away. Conventional lenders may want to see 6 month or more separation

[@marcuscotton]

This is great Phil--thanks so much for the information. I am looking for a new portfolio lender. I'm based in St. Louis and so are my properties. Can you please send me the link to your friend Jerry Collins or any others that you can recommend? Thanks!

[@freedom_mentor]

DON'T work with Jerry or Finance of America Commercial. Instead, the very best Portfolio Lenders are listed here: www.freedommentor.com/investor-loans-for-rental-property/

[@marcuscotton]

@@freedom_mentor thanks! do you ever chat with other investors over the phone? If yes, I have a unique situation and would love some guidance (maybe 5 min). I can supply my number if you're open to it. Thanks again!

[@freedom_mentor]

@@marcuscotton I mentor people across America on a daily basis over the phone. To reach me by phone, you'd have to join my Apprentice program.

[@jackj20111]

I have about 350K in equity in my home and want to get into real estate. Our income is on the lower end for us both, Will any lenders look at us? credit is good 715 and debt is very little under 40K CC, and one car. I will be looking to your responds.

[@freedom_mentor]

The equity in your home could potentially be accessed using a HELOC but that will be predicated on your debt-to-income ratio. Your ability to obtain a loan on a rental property could be determined by the performance of the property itself, and not your personal financial situation.

[@noelmarte2835]

How manny property can I have under one llc?

[@freedom_mentor]

As many as you want. But you should own each property in an individual LLC

[@Real.Estate.Report]

Great tips! I'm working on building a new relationship with a broker this year to do more relationship deals and portfolio loans.

[@larrycox697]

I will be brief with what I do. I'm a financier building my profession around business professionals like you with hopes of synergy for the growth of each other's business. Should you be looking for finances to sustain your business/personal interest, kindly look into 52G Finance LLC. We specialize in personal loans, business loans, project finance e.t.c with a very competitive/low rate to local and international borrowers(Your location is within our jurisdiction). Our terms includes great features to help stabilize your business before repayment. I can send more information if interested. The rate are welcoming I assure you.

[@mg541-]

Thanks Phil! What are your thoughts on fixed vs adjustable rate ARM ? Looking to purchase a second home that we will use ourselves and rent seasonally. Planning to have it for decades to come. Likely to refinance in around 5 years or so to pull out equity for another real estate purchase. Quotes in hand today for fixed rate conventional 30yr around 3% (for 2nd home) and a 10/1 ARM (portfolio) around 2.875%. What do you think?

[@freedom_mentor]

30 Year Fixed; you never know what will be going on in 5 years.

[@MsElaine122]

And then only buy deals regardless of the financing that have DSCR >1.5. Google DSCR. Which usually means you are also >$300 net between PITI and rent. Best to you.

[@abdulshakurmuhammad2480]

Great information thank you

[@freedom_mentor]

Thanks!

[@danettegrant6408]

Wonderful thankyou

[@buckjohnson2836]

I am new to this channel - great info Phil. What are your thoughts on a Brrrr using a home equity line with the intent to refi after that first year is up. Why would I not go with this method instead of going to get one of the 4 loans types you mention. Also, with the prices of houses where they are now, seems like those higher interest rates would kill the cash flow that would normally be available to a conventional or local/union borrower. Should I assume those non QM and portfolio loans are only to be used short term? Thanks again!

[@freedom_mentor]

HELOCs are wonderful! BUT, make sure you lock in low, long term fixed rates when you can. The problem with HELOCs is that there is a small risk that rates will increase and then you'll wish you locked in a fixed rate. Use HELOC money for short term uses.

[@buckjohnson2836]

@@freedom_mentor Thats the plan! 100% agree. Thanks Phil!

[@gregrichards1660]

no argument that Phil isn't awesome yet 30 yr Fixed Sep 2022 6.78..is this still true to 6.78? ty

[@freedom_mentor]

My rules still hold true today, such as always keeping loans on rental properties.

[@ettycarmen7672]

Why is an LLC soooo necessary? If I can save 600$ monthly on a 500k property with a conventional loan why shouldn't I just do it in my name? I have a separate 1 mil umbrella policy for each propery and that is much much cheaper. It also doesnt mess with the DTI to do it that way. Sure no LLC is a drawback but that justifies paying 150k plus over the life of the loan in interest to go via a portfolio lender etc? Lets assume that credit union is not an option for me....

[@freedom_mentor]

How many times have you dealt with insurance companies? They can be AWFUL! They have teams of brilliant lawyers that spend all day coming up with ways NOT to payout claims; whether a property specific policy or an umbrella policy. And they always have limits. Owning each property in its own LLC is the best umbrella policy. And with Local Banks / Credit Unions providing the same loans as Conventional, but allowing for LLC borrowers, it's a no brainer.

[@ettycarmen7672]

@@freedom_mentor Lets say I cant find a local bank or CU that will allow an LLC. WOuld u say that the cost to do portfolio is worth the added benfit of LLC? ALso even if I do conventional, wouldnt quit claim into LLC and then getting a new title insurance policy and paying transfer tax still leave me far far ahead in overall costs considering the rates are so much better for conventional? Again assuming I cant get local/ CU....

[@BringingFaithHome]

@@ettycarmen7672 I'm not sure of your financial situation, but obviously you can only buy conventional for so long. Eventually, you don't want to look good on paper..

[@freedom_mentor]

@@ettycarmen7672 For me personally, I have never had a problem finding a local bank / credit union and I doubt you will either. But to answer your hypothetical question, I will think its worth it to go non-QM over buying in your personal name; but again, I don't think you truly will be faced with that decision. If you can be a full doc loan, non-QM rates will be very similar to conventional rates.

[@ms.cordero2784]

Anyway people can watch your videos outside of KZbin? The continue to blacken the screen and cut the audio. To me that is indicative that there is value and truth in them; hence being subjected to se~sorship. .

[@siracida2564]

great info mr pustejovsky...thank you! I am a beginner real estate investor..

[@BikeHelmetMk2]

Hey Phil, got any Non-QM name suggestions for a Canadian? I have heard of NRZ, but that's US.

[@freedom_mentor]

In Canada, you've got the few banks that originate mortgages (Scotia, RBC, TD, BMO, CIBC, etc) and then you have some private, hard money lenders; that's all I am aware of.

[@BikeHelmetMk2]

@@freedom_mentor Ahh, alright - not your primary area. I know that Scotia, RBC, TD and CIBC tend to stick to traditional mortgages. BMO and Credit Unions will go a little further outside the norm. Mobile home? Sure. Modular? Great. Don't own the land? Workable. Own a half interest? Not ideal, but still doable. They're who you approach for weird properties at higher rates. Then there are global banks and pension funds that wholesale owner occupied mortgages and investor mortgages (Max $1m), which mortgage brokers often have access to - but at significantly higher rates. I was hoping to be able to drop some names there, but the only one that I know is HSBC, and they're not huge like NRZ is in that field. Thanks for getting back to me!

[@alishasellers6206]

Sooo helpful!

[@freedom_mentor]

Glad to hear!

[@patcivitella1]

awesome info thanks