I continue hear (and read) more and more about investors who are in financial straights due to getting involved in real estate investing without "full knowledge".
I had a call from someone last week who almost lost his primary residence due to trying to juggle his home payment along with his investment property payment when it was vacant.
I hear more stories from disgruntled landlords (rookie & marginally experienced investors about how their deadbeat tenants are not making payments, which straps them financially.
For those who still don't understand - this is why rates and terms on investment properties are higher. The bank knows it is more of a risk, and they know the failure rates to the decimal point.
Am I saying not to invest in real estate? NOT AT ALL. Real estate is still (and will likely always be), the best form of long term investing. What you need is a trusted advisor that you will listen to. I have talked more people out of investment properties than most loan officers who are just looking to make a loan. Many people are lured in by greed, and others simply by desire, or even need for additional income.
Now is a GREAT time to become a real estate investor, especially as many investors are baling out. The keys are to know your financial situation and how it relates to taking on another mortgage, get to know the property intimately, know the market and where it is headed, have a cushion to fall back on, and don't over leverage yourself too fast.
If you would like to speak to a mortgage advisor whose goal is to help you strategically add real estate to your investment portfolio with minimal risk to your overall financial plan, call me today at 800-757-9507.
Make it a great day!
P.S. - Here is some info to help you in the process of your investment property search:
1. Nationwide Government & Bank Foreclosed Property Listing
2. Course on buying fixer-upper real estate.
No comments:
Post a Comment