Investment Loans

We offer a great selection of Investment loans.

• Up to 80% Loan to Value for Single Family
• Purchase 2-4 Units up to 75% Loan to Value
• Fixed, Arms, & Interest Only Options
• Up to 2% back from seller for closing costs
• Close with in 30 Days

Why Invest in Real Estate

• Invest to get a great rate of return on your money.
• Invest to gain equity over a long period of time.
• Invest to purchase, fix up, & sell for a profit.

Buying a Rental? Here are some Do's & Don’ts

Do's

• Use an agent that has experience with purchasing rental properties.
• Always calculate your Return on Investment (We can help you with this)
• Location Location Location
• Be conservative when calculating the return on investment

Don'ts

• Do not purchase based on emotion. Always purchase based on logic.
• Do not purchase based on future potential appreciation. Unless you are getting a good rate of return.
• Do not buy unless you have at least 6 months reserves in the bank after purchasing.

How to Calculate Your Return on a Rental Property

• Add up the down payment + closing costs + repairs needed = Investment.
• Subtract the total monthly payment (PITI) from the gross amount of rent = Monthly Cash Flow.
• Add up any monthly expenses including property management fees, monthly repairs exc and subtract this from the Monthly Cash Flow = Net Cash Flow
• Multiply the Net Cash Flow by 12 = This is the yearly profit of the Rental.
• Divide the Yearly profit into the total Investment from #1.

Example: $130,000 4-Plex Purchase

Investment = $32,500 Down Payment + $5000 Repairs + $3,000 Closing Costs = $40,500 is the total Investment

Total Rental Income $2,000 – Monthly payment $714 = Monthly cash flow $1286

Other Monthly Expenses $250 – Monthly Cash Flow $1286 = Net Cash Flow $1036

Net Cash Flow $1036 x 12 Months = $12,432 Yearly Income

Yearly Income $12,432 / Total Investment $40,500 = 30% Rate of Return

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