How To Get The BEST Loan As A Real Estate Investor
In this video, Tony Stephan interviews one of his favorite mortgage brokers to get her insights and industry secrets on how to get the best loan as a real estate investor.
The best loans for real estate investors depend on their investment strategy (e.g., fix-and-flip, buy-and-hold, commercial properties) and financial situation. Here are the most common and effective loan options, with their key pros and cons:
Conventional Loans Best for: Buy-and-hold investors with good credit.
Pros: Low interest rates. Long terms (15โ30 years).
Cons: Strict credit and income requirements. Limited number of financed properties (usually up to 10).
Portfolio Loans Best for: Investors with multiple properties or complex financials.
Pros: Flexible underwriting. Can finance multiple properties under one loan.
Cons: Higher interest rates. Shorter terms than conventional loans.
DSCR Loans (Debt-Service Coverage Ratio) Best for: Buy-and-hold investors with rental income.
Pros: Approval based on property cash flow, not personal income. Great for full-time investors.
Cons: Must live in the property. Limits on property types and number of units (max 4).
Commercial Real Estate Loans Best for: Large multifamily (5+ units) or mixed-use properties.
Pros: Tailored to large-scale investments. Can fund millions.
Cons: Complex underwriting. Higher down payments (20%โ30%).
HELOCs Best for: Investors with existing equity in property.
Pros: Low interest rates. Flexible use of funds (rehab, down payments).
Cons: Risk of losing your home if you default. Variable rates (HELOCs).
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00:00 - Intro 01:16 Conventional loans 03:45 Who is Conventional For? 06:30 DSCR Loans 10:33 Working with lender 11:45 DSCR Foreign national 12:25 FHA 15:05 VA 15:42 - HELOC 17:59 - Recap on all loans 18:19 Outro
