CONSIDERING HOW INVESTMENT PROPERTY OWNERSHIP COULD CHANGE YOUR LIFE?
What Investors Can Expect
So you’re considering jumping into the world of investment property! I know I caught the bug more than 17 years ago and haven't looked back.
There is much more to consider and at stake when buying and selling investment properties compared to traditional residential real estate -- which is why I’m here to coach you through every step to make sure you don’t miss any details or opportunities and you do maximize your goal-specific investment.
If this is your first time purchasing for pure investment purposes, click through the icons to learn more about what you might expect in the process.
Preparing to Buy
Before you start shopping for your investment property, it is a good idea to understand down payment requirements, various loan types, and how to leverage current assets to best position yourself to win an investment property.
Build Your Credit Worthiness File
A credit worthiness file contains all your important financial documents. You will need it to secure financing for your property. This file should contain:
Financial statements
Bank accounts
Investments
Credit cards
Auto loans
Recent pay stubs
Tax returns for two years
Copies of leases for investment properties
401K statements, life insurance, stocks, bonds, and mutual account information
ProForma for Commercial Loans
Check Your Credit Rating and DTI (debt-to-income) Ratio
Your credit score will have an impact on what type of property you can buy, and at what price. In addition, your debt-to-income (DTI) ratio will also be a significant factor. Buying an investment property increases your DTI ratio.
If you are buying your first investment property, it is very important to note that from a Lender’s perspective, you will need to be able to prove you can afford the increase in debt that comes with purchasing the investment property, as well as have reserves to cover in case of a major life event. Sounds a little scary….no worries! I will help you navigate and understand these requirements!
Be Careful With Your Finances
Sudden career changes or large purchases will most likely have a negative effect on your ability to secure financing. You want to approach your property purchase from a position of financial stability.
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