If you already have one or more rental properties, you know that investing in real estate can be a difficult process. But if you're planning on making your first real estate investment, this should not scare you away. Whether you're an expert or a novice, the professionals at Southpoint can make the process a lot easier.
Problems When Buying an Investment Property
If you're thinking of turning one of your homes into a rental property, planning on buying a multi-unit building or simply considering investing in real estate, there are a few important terms you should learn. At Southpoint, we make sure that you fully understand everything before taking the first step towards investing.
Loan to Value Ratio: This is the ratio of your loan compared to the actual real value of the property. If you buy a $500,000 home and take out $400,000 in investment property loans for the down payment, your loan to value ratio is 20 percent.
Reserves: This is the value of your assets after purchasing a property. This can include real estate, cash and even your pension.
Making Real Estate Investing Easy
At Southpoint, our goal is to ensure that you're fully informed throughout the entire real estate investment process. For instance, did you know that making a 20 percent down payment can greatly reduce your loan to value ratio? This means you can pay off your mortgage quicker with lower payments.
It's these little nuances that can dictate your experience in buying an investment property. That's why Southpoint loan officers will walk you step by step through the entire process. We also have in-house underwriters,who can work directly with your loan officer to avoid any costly delays.
Apply today to get pre-qualified for your investment property loan, and our experts can help you qualify with a property's current renter. You may also be able to secure Fannie Mae options for up to four-unit or multi-family properties.
If you're ready to get started on your path to real estate investing, contact Southpoint today!