Investment Properties

Owning real estate has long thought to be one of the paths to accumulating wealth. Mark Twain was quoted to having said “Buy land, they’re not making it anymore,” and he stands to be correct. Although the location of the land and the structures on it can be extremely important factors when it comes to purchasing real estate for the purpose of investing in it as compared to occupying it as your primary residence. A real estate property purchased with the intention of earning a return through either rents received or future sale is considered an investment property. Many of the wealthiest people in the world have vast portfolios of investment properties, but you do not have to be in this category in order to be able to purchase residential investment opportunities. With as little as 10% down on certain property types, you too can begin building your real estate portfolio and the Mortgage Solutions of Georgia team can show you how.

For the most part, individuals looking to purchase residential property for investment purposes need to have what is considered excellent credit ratings. The actually credit score to achieve such a rating can be as low as 680, but it is not score alone that creates what is considered excellent credit. The pay history on accounts, number of active and open credit accounts, and length of time these accounts have been opened and utilized are all major factors. It is highly recommended that you consult with an experienced mortgage professional before pursuing a mortgage loan of this type to determine if your credit rating is acceptable.

Most lenders require larger down payments for the purchase of an investment property. These can run as high as 20% of the sales price or as low as 10% of the sales price (when buying a Homepath foreclosure). Also, it is normal standard that reserves in the form of liquid assets are required for most investment property purchases in the amount of 6 months PITI for the new property being purchase as well as the current primary residence. To determine the down payment and reserve requirements required to purchase an investment property, it is important to work with experienced real estate professionals, realtors and mortgage professionals. Experienced housing professionals can make the buying process a much easier experience from start to finish and eliminate costly mistakes that can cause delays and possibly lead to canceled contracts.

Today’s current market conditions, extremely low financing rates and a depressed housing market have produced excellent investment property purchase opportunities. If you have an interest in this side of the real estate market, it is imperative that you start by aligning yourself with a mortgage professional that can advise you on the loan products available and the requirements of each to fund your next investment purchase. The Mortgage Solutions of Georgia team prides itself on its knowledge of loan products, the mortgage market, and available lender partners that can help an investor builds his or her portfolio with residential investment properties. Call us today!