As soon as the thought enters your mind about buying an investment property or a primary residence in Ventura County, you should meet with a mortgage professional—up to a year in advance.
A mortgage professional will take a look at your situation and your income and provide you with options for either an investment property or a primary residence. They will let you know how much you qualify for, and if you don’t qualify they’ll let you know what you need to do to do so. If you’re looking for an investment property, they’ll let you know how much you would qualify for regarding duplexes, triplexes, and fourplexes.
Why meet a year in advance? Sometimes we may want to purchase something, but we don’t know exactly what we have to do to purchase it. I always meet with a mortgage professional up to a year in advance and ask them questions about what I have to do to qualify for a property, how much my payment would be, and what my interest rate would be like.
This way, if I don’t qualify over the next year, they’ll tell me what I need to do and I can correct that. In addition, by meeting with a mortgage professional up to a year in advance, you’re prepared. If you meet with one today, for example, and they tell you you’re qualified, that’s a huge benefit because good investment properties are rare and go fast once they enter the market—usually a matter of days.
So, be ready or know what you have to do to be ready so once that great opportunity comes along, you can pull the trigger.
It’s also important to know what your options are. Every time I close on an investment property, the next thing I do is have a conversation with my lender about what I need to do to purchase my next investment property. Every single time, no matter what it is, I know what my options are.
Be ready so that once a great opportunity comes along, you’ll be ready to pull the trigger.
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For example, my mortgage professional told me that because I own four residential properties, I have to make a minimum 25% down payment and have a certain amount of reserves for my next property. Now, if I come across an opportunity I think would be good for my investment portfolio.
My dad always told me that the ability to be able to borrow money at a lower interest rate for assets is one of the biggest benefits of living in this country. By being able to do that, you can grow your wealth. Who wouldn’t want to borrow money at 4% for 30 years? The only way you can accomplish this, though, is by meeting with a mortgage professional. They’re the key to getting loans from a bank and being able to qualify.
To end this week’s segment, I want to answer a question I received from a man named Jeff. Jeff asks, “What do I need to have to find a rental with 18% return on investment?”
You have to be ready, Jeff. Your area is pretty high in price, so you may have to search in other areas—maybe not where you live, but somewhere with a really high rental market that features lower prices.
If you have any questions about this topic or you’re thinking of buying or selling a home, don’t hesitate to give me a call or send me an email. I’d be glad to help you.