Cheap financing source for rental property? - Posted by Bryan

Real Estate Investing
1

Posted by Tim on August 29, 2005 at 20:26:21:

Could you email me a few applications?

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Cheap financing source for rental property? - Posted by Bryan

Posted by Bryan on August 29, 2005 at 10:44:25:

I’m signing a purchase agreement on a rental this week and am looking for some ideas on getting the money together from a good cheap source. This will be a long term property for me. I’ve checked with the bank I usually finance from, but they have 3.5 points plus other ridiculous closing costs because it is an investment property. I’m looking for conventional finance solutions that are cheaper and may not require so much money down. Any ideas or other sources that you like to deal with?

Thanks,
Bryan

3

Re: Cheap financing source for rental property? - Posted by Devon Daughety

Posted by Devon Daughety on September 05, 2005 at 02:03:08:

What state are you in?? What is purchase price?

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Re: Cheap financing source for rental property? - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on August 29, 2005 at 11:02:03:

What is the bank offering?
Whats the LTV?
Credit Grade?
What would your debt-to-income be?
How many units are in the rental?

I’ll let you know whats available, but I need more info.

Regards,
Patrick S. Lawson

5

Re: Cheap financing source for rental property? - Posted by Bryan

Posted by Bryan on August 29, 2005 at 12:06:26:

Patrick, thanks for responding!

  1. 5.75% 30year fixed with 3.5% points (total closing costs of $6100)
  2. 90% LTV
  3. Very good, but I’m not sure of my score
  4. Payments/insurance/taxes = $925,
    rental income of $1250 monthly (it is currently occupied thru May 06)
  5. One 5 bedroom student rental 3 blocks from a large university

It is a small town bank that I’ve dealt with my entire life and I like the service they give and the fact that I can get money at anytime, but now I’m starting to buy more and more real estate and want to start researching other sources to try and save on the bottom line.

Thanks for the help!
Bryan

6

Stick with the Small town Bank? - Posted by Randy (SD)

Posted by Randy (SD) on August 29, 2005 at 14:34:16:

90% LTV @ 5.75% on 30 yr. Fixed for non-owner occupied rental and you?re complaining about 3.5 points? You should take it, no questions asked?