Truly expert real estate investment lenders aren’t rare, they’re very difficult to find. Has that been your experience?
Transcript: Hi this is Jeff Brown the “BawldGuy”. Today we’re going to talk about investment lenders, not regular lenders. It’s important to distinguish between the two. Here’s why. They simply don’t know the rules. Underwriting an investment loan is far different in many ways than underwriting a home loan. They have to know the different Fannie Mae rules. Many of them still think to this day that the most loans an investor can get are four when it’s ten. They don’t know that there are certain things you should watch for when you’re booking the third and fourth loan for the guy who may be thinking of buying five or six. Here’s what happens. They’re in the middle of underwriting for that fourth loan and their lender’s all happy because they’re getting ready to buy that fifth and sixth. They put those fifth and sixth properties in the pipeline. What happens is Fannie Mae comes up and says, “Sorry, this fourth loan you’re doing is going to have to be at a 5% higher down payment because you’re doing a fifth and sixth loan.“ Keep those loans under the radar until you’re done with your first four. You see, your home lender doesn’t know that. It’s not their fault. Ignorance is ignorance. You’re not going to feel that way when it cost you 5,000 to 10,000 or more because you have extra appraisals and the like. Look, get an investment lender and I’ll tell you right now. I’ve been doing this since Ford was in office. Pick a hundred lenders at random. One or two of them can do investment loans competently. Maybe only one, half of one can do it expertly. This is why I go through lenders all the time when I’m in a different state until I find the one. I have the one. This is why you want to make sure that when you’re buying investment property, you have the right lender. Otherwise, you’re not going to make it to the ninth inning. This is Jeff Brown, the BawldGuy. Thanks for showing up. We’ll see you next time.