Real Estate Investing
Investing in Real Estate has many benefits and with rates this low, you might want to giddy up!
Mortgages for property investors
- Intercap Lending provides 15, 20, 25 and 30-year mortgage options for one to four unit residential properties.
- Investment property loans typically range from $50,000 to $2 million or more.
- Rental property loans usually require 20% down payment. However, if you are going to live in the home or on the property, you may qualify for as little as 3.5% down.
- Rental property investors may be able to claim 75% – 100% of the rental income with a signed lease agreement and rental income history.
Turn your home into an investment property
If you are buying a new primary residence, you might want to consider renting your current home. In this scenario, you can still take advantage of rates and loan options for primary resident properties. In other words, you can keep your current home as an investment property without having to take out an investment loan. If you find a renter and get a signed rental agreement, you may be able to claim 75% or more of the rental income to demonstrate that you can afford both mortgages. There are other considerations, so please contact your Intercap loan officer for more information.
What does it take to be a landlord?
When you combine the potential benefits of appreciation, amortization, and rental income, rental properties can be a powerful investment opportunity. As with any investment, there are risks to consider. Support from rental investment professionals can help you mitigate these risks. Your Intercap loan officer may be able to provide local recommendations for the following:
- Investment Real Estate Agents
- Property Management
- Home Repairs and Improvement
- Tax Law and Accounting
- Short and Long-term Lending
- Lease Agreements and Legal Support
- Landlord and Rental Insurance
Why invest in residential real estate?
Property Investments Can Produce Passive Income and Wealth
Ninety percent of millionaires got that way by owning real estate. When you add up appreciation, principle buy-down and cash flow, rental properties have proven to be some of the best long-term investments out there. Check this buy vs rent scenario for potential net gain projections.
Real Estate May Be Less Sensitive to Volatility
Housing gains during most recessions remained positive. That’s because housing is essential, even in a recession. Buying and exchanging property during a recession is one of the more stable investments.
Property May Outperform Stocks and Bonds
Historically speaking, real estate has tended to outperform other securities when considering the combination of appreciation and leveraging rental income. Any investment has risks that need to be considered. If you are ready to become the Real Estate Wrangler you’ve always wanted to be, Intercap Lending can help you grow your wealth through real estate and take advantage of these historically low rates. Find a Loan Officer in your area, or apply for a loan now and we’ll get you started.
*Originally stated by Andrew Carnegie. Quoted by cnbc.com: “Real estate is still the best investment you can make today, millionaires say- here’s why”. Published Oct 1, 2019 | https://www.cnbc.com/2019/10/01/real-estate-is-still-the-best-investment-you-can-make-today-millionaires-say.html