How to get a mortgage for your first investment property
Summary
How hard is it to get a mortgage for your first investment property? If you’re a beginner real estate investor or if you’ve never invested in real estate before, approaching lenders to get a mortgage can be intimidating. In this episode, you’ll learn how to get approved for a mortgage as a first-time real estate investor – without any gimmicks. I’ll share 6 critical things you must keep in mind before approaching your lender so that you increase your chances of being approved for a loan.
“No matter what you do, real estate projects are difficult. They’re difficult not only because of time or because of money – but because physically they’re tasking projects. This is not an industry that you can go into thinking ‘’Hey you know, I watched Instagram, or I was looking at some TV program it looked easy to me’’.”
What we discussed
- (01:02) Being ghosted by lenders
- (01:02) Being ghosted by lenders
- (02:32) Who lends money to beginner real estate investors?
- (05:04) How to contact lenders for first-time investors
- (06:41) People who can help you invest in your first property
- (09:00) What is a deck in real estate investing? (MUST HAVE)
- (13:03) Getting rejected for a real estate investing mortgage
- (16:43) Beginner real estate investing mistake to avoid at all costs
3 things to remember:
- Big banks usually don’t want to lend to first-time investors. In the beginner space, their products are more tailored to first-time homebuyers. When you are looking to invest in your first property, you are better off contacting local banks rather than big-name banks. Local banks understand your community more than big banks.
- When banks ask you tough questions about the property you are investing in, you don’t need to provide an answer right away. Contractors, real estate lawyers, brokers, and other people in the real estate space can help you answer these questions well. This is why it’s crucial to network and surround yourself with people who know about real estate.
- Always apply for loans with at least 3 different lenders when investing in real estate. You want to always have backup options. You don’t want to lose a deal just because one lender rejected you and you don’t have time to contact other lenders.
