A client came in the other day and thought he had to pay cash for a rental property he wanted to buy. When I asked him why he was paying cash with the interest rates so low, he said that the bank with the wagon wheel told him, a veteran on disability with great credit, didn’t qualify. What most people don’t know is that some of the big banks will not count rental income on the new property if you are a first time investor, so the big bank turned him down. When I explained to him that he should always call me for financing because every bank can take the lending rules given to us by Fannie Mae, Freddie Mac, FHA, VA and USDA and make them even more strict.
Not all banks are created alike, and the more the CFPB makes rules to protect the consumer, the more the big banks don’t want any part of it. In fact the big banks cherry pick more and more. Did you hear the big banks are not doing FHA anymore? Don’t let friends or family go to a bank; have them call me for personal attention and access to all programs.
So, this veteran was able to buy a property with cash flow and only $20,000 out of pocket instead of $100,000.
He is now a happy investor and I have forgiven him for not calling me first. 😉