Texas investment property loans - acquiring rental propertyAs of midnight march 13ths I lost 2 deals due to Wall Street. Yes Wall Street has drastically cut back on 2nd liens , particularly the high LTV loans (90-100%) that I have been doing for investors for several years. What does this mean? It means that the days of the 0 down investment property mortgage is probably over, at least for now.I want to talk about one strategy that I personally use to acquire rental property. I never really thought it was a great idea to buy rental property with a 0 down loan, unless you were purchasing at a minimum of 80% of market value, which most buyers fell short.When buying rental property how do you eliminate 98% of buyers (not hard to do these days with subprime fallout?) Find properties that are not lendable by conventional Wall Street mortgages. Properties that the appraisal would read below average or have any roof or foundation damage are good candidates. Bottom line, if you would move your … [Read more...] about Texas Investment Property Loans – Changes on the Way
Cash out refinance texas investment property
Restaurants are a favorite commercial property for many investors because:Tenants often sign very long term, e.g. 20 years absolute triple net (NNN) leases. This means, besides the rent, tenants also pay for property taxes, insurance and all maintenance expenses. The only thing the investor has to pay is the mortgage, which in turn offers very predictable cash flow. There are either no or few landlord responsibilities because the tenant is responsible for maintenance. This allows the investor more time to do important thing in life, e.g. retire. All you do is take the rent check to the bank. This is one of the key benefits in investing in a restaurant or single-tenant property. Whether rich or poor, people need to eat. Americans are eating out more often as they are too busy to cook and cleanup the pots & pans afterwards which often is the worst part! According to the National Restaurant Association, the nation's restaurant industry currently involves937,000 restaurants and is … [Read more...] about 2009 Complete Guide For Restaurant Real Estate Investments
In Texas you can refinance your home as well as your investment property. And with today's low mortgage rates, lots of people are doing just that using home equity loansPlus some are doing the two-birds-one-refinance-approach: Refinance the home and pull cash out.When it comes to refinancing, you have two options. A "rate and term" refinance or a Texas home equity loan "cash out" refinance.With a home equity loan you pull equity out of your home or investment property.Most people refinance to get a lower rate; this is called a "rate and term" refinance. One is keeping the same loan amount, they are just lowering or changing the rate or term of the mortgage.Maybe they are moving out of a 30 year note to a 15 year note. This is called a rate and term refi because they are just changing the rate or the term of the original loan.Lower mortgage rates do mean lower payments. But some clients choose a "cash out" refinance (Home Equity loan)- which means they pull equity (cash) out of their … [Read more...] about How a Home Equity Loan Refinance Can Save You Money – Should You Refinance Your Texas Home Loan?
Every mortgage or refinance needs a target; something larger we're trying to accomplish beyond just buying/refinancing a home or investment property. The best loan isn't always the loan with the lowest rate, but the loan that helps you move forward financially.Here are a few "Refinance Rules" you may want to consider.These are rules aren't strict-rather they are just like the sites on a rifle...they help everyone get a focus.Because a mortgage should not be an end in and of itself, but a means to a bigger end.Top Refinance Rules...#1) Eliminating Consumer Debt: (Non-tax deductible)#2) Have a Savings Cushion: Ideally 3-6 months in a liquid interest-bearing account.After you close on a home loan, you'll need a savings cushion. They focus so much on the mortgage rate, that they'll empty all their savings to buy a home. Not a good idea! Tell me, does it matter if you get the lowest rates in Texas if you don't have $500 left to your name after closing?This is one reason why people should … [Read more...] about Which is Better – Home Equity Loan Or a No Cash Out Refinance?
The state of Texas has some pretty interesting refinance rules. This is especially true when one wants to pull cash or equity out of their home.There are two types of mortgage refinances. The first type is called a rate and term refinance. This is simply when someone wants to lower their rate or change the term of their original home loan. For example, someone with a 30 year mortgage at 7% may want to refinance to a 5.25%, 15 year mortgage.In this instance they are not pulling cash out they are just changing the rate and/or the term of their original loan. During the "refinance boom" (2001-2004) many loan officer and mortgage brokers did dozens and dozens of rate and term refinances because mortgage rates dropped so low.Most people refinance when their home loans when the market rate is much lower than their current mortgage rate. A good rule of thumb is when you can save about 1% it may make sense to refinance.The second type of refinance is called a Texas Cash out Refinance. This is … [Read more...] about What Are the Home Equity Loan Rules in Texas?