Podcast Episode 9: Let’s Borrow some money Pt.1 – Traditional Loan
Welcome to every possibility podcast. A place for new investors to learn about investing, starting a business, and credit knowledge. Sit back, relax and let’s get the conversation started…
My name is Ameerah and our topic for today is…
Let’s Borrow some money – traditional loans
Just like in the investor diagram back in one of the previous episodes. If you haven’t heard it then you may want to check it out.
If you have credit and assets then a traditional loan may be a good option for you. Depending on the strategy you are trying to use. We will talk about different strategies in a later podcast.
But let’s carry on. If you are wanting to get a traditional loan for a rental then now is a good time to buy because interest rates are so low (depending on when you listen to this) and it may be easier for you to qualify.
Depending on if it’s a commercial loan or a conventional loan you can see rates under 5% in most cases. This will all depend on credit score, DTI (debt to income ratio), income, and assets. You will need to put 20% down or more however the down payment can range between lenders. Again this is if you go the traditional route.
With this type of loan, I would see if I can find a deal where you can have instant equity and with low monthly payments. This way you are more likely to be able to cash flow! Everyone loves cash flow. I know I do.
With instant equity, you can have some wiggle room if the housing market starts to sway a little. Especially now in 2021 with the housing market the way it is and homes sales prices are going way over the asking price. Now if you are in virtual real estate groups there may be a few investors saying there may be a correction coming. No one really knows what is going to happen everything is just speculation but it is always still good to be prepared.
Now each lender will have its own requirements for getting funded and different programs they offer. So look around, ask questions and see what works best for you.
Before we end this podcast I wanted to leave you with a FREE resource which is an excel spreadsheet of a DTI, debt to income, calculator. Yes, you can probably search around and find it online. Definitely a possibility however for ME I like something I can use on my computer where I don’t have to always go online.
It will also have video instructions on how to use the calculator. I was a residential loan officer and I made a spreadsheet similar to this to help clients. So I am passing it along to you. Knowledge is power. If you are listening to this outside of my website then you can go to my website at www.everypossibility.net/podcast and head down to the episode on traditional loans.
Well until next time I want to wish you a good day and a good week and I hope to talk to you soon.
Thank you for taking the time out to listen to this podcast.
If you are interested in unsecured financing for your next business project you can reach out to us at www.everypossibility.net or give us a call at 469-722-1788. We would love to hear from you. But until then bye now…