Financing Options for First-Time Multifamily Property Investors
09
Sep
By Kyle Muth
0 Comments
Real Estate Investments, ,

Financing Options for First-Time Multifamily Property Investors

There's no question that investing in multifamily real estate can create a steady cash flow. In fact, the potential to earn more income and to increase your net worth can be greater with multifamily properties than with single-family homes—as long as you complete your due diligence. Teaming with the right lender can help get you through the process. But before you start, it's helpful to understand the financing options available to multifamily property investors. That way, when the time comes, you can pick the best loan for your needs. Fannie Mae and Freddie Mac Loans Fannie Mae and Freddie Mac…
Read More
Why You Should Buy an Apartment Complex
25
Aug
By Kyle Muth
0 Comments
Real Estate Investments,

Why You Should Buy an Apartment Complex

Decide if Buying an Apartment Complex Is Right for You Before you start an apartment investing business, you want to make sure it’s the right investment strategy for you. Compared to purchasing single-family homes and small multifamily properties, an apartment building requires more research, more time, and oftentimes more capital and additional expenses. It’s important to weigh the pros and cons before buying apartment complexes. Pros of Buying Apartment Complexes There are many benefits to apartment investing. These include recurring income, spreading income across many units, lower per-unit maintenance costs, and the potential for extra income beyond collected rents. Lenders…
Read More
What Is a CMBS Loan? Your Guide to Commercial Mortgage-Backed Securities
16
Jul
By Kyle Muth
0 Comments
Commercial Real Estate, Loan Programs, Real Estate Investments, ,

What Is a CMBS Loan? Your Guide to Commercial Mortgage-Backed Securities

Those in the business of buying and selling commercial real estate have likely heard about CMBS loans. This is a guide to how CMBS loans work, the ways in which they are different from traditional commercial loans, and the advantages and disadvantages of choosing this type of financing. CMBS loans are also known as commercial mortgage-backed securities or conduit loans. These loans are used to purchase commercial real estate buildings like multifamily living communities, office buildings, or warehouses. They typically offer flexible underwriting standards and use the property as collateral. That said, a CMBS loan is different from a traditional…
Read More
Mixed Use Properties — Why They Are a Good Investment
06
Jul
By Kyle Muth
0 Comments
Real Estate Investments,

Mixed Use Properties — Why They Are a Good Investment

Maybe you’ve never heard of the term mixed-use property, but we can guarantee you’ve been in one. Mixed-use properties exist all over the place – these properties are real estate developments that have different uses (retail, residential, offices, hotel, etc.). In a mixed-use property, the separate uses all compliment each other. Mixed-use properties come in all shapes and sizes: they can be a single building or take up an entire neighborhood. Right now, there is an increasing number of real estate investors looking to invest in this type of property, and you can be one of them! Investing in these…
Read More
15 or 30-Year Loan for an Investment Property: What’s the Best Move?
17
Jun
By Kyle Muth
0 Comments
Mortgage, Real Estate Investments, ,

15 or 30-Year Loan for an Investment Property: What’s the Best Move?

There's a lot to be gained by buying an investment property. Not only can you take in monthly rental income from tenants, but you can also hold on to that property until its value increases and sell it at a profit.  However, many real estate investors can't buy a rental property outright. If you're looking to take out a mortgage for your investment property, you may be wondering whether to opt for a 15-year loan or a 30-year loan. There are pros and cons to both options. Here's what you need to know.  The 15-year mortgage The primary benefit of…
Read More
What is the 2% Rule? Is It a Smart Real Estate Investing Strategy?
06
May
By Kyle Muth
0 Comments
Real Estate Investments, ,

What is the 2% Rule? Is It a Smart Real Estate Investing Strategy?

Many real estate investors have heard of the 1% Rule, but what about the 2% Rule?  The 2% Rule states that if the monthly rent for a given property is at least 2% of the purchase price, it will likely cash flow nicely. It looks like this: monthly rent / purchase price = X.  If X is less than 0.02 (the decimal form of 2%) then the property is not a 2% property. If it is 0.02 or greater, then you’ve found a 2% property. This can then shed some light on whether or not a property is likely to…
Read More
What is a Rehab Loan?
05
May
By Kyle Muth
0 Comments
Loan Programs, Real Estate Investments, ,

What is a Rehab Loan?

A rehab loan is also referred to as a renovation loan and it will allow property buyers to finance both the purchase / refinance and rehab of a property through one mortgage. If you are planning on flipping houses for profit, you will likely have to make significant repairs and renovations to the house. In order to do this, you’ll probably need a rehab loan to pay for the property and its repairs so you can sell it at it’s new value.  There are three main types of rehab loans for investors you should know about: 1. A FHA 203(k)…
Read More