Real Estate Investments That Make Sense

Our mission is to provide unbiased information and advice to residential real estate investors nationwide. Steve Setka, the owner and primary consultant at Nationwide, is available to provide you with information and insights that will position you to acquire income property investments with a high probability of yielding an exceptional return with a minimum amount of risk. Real estate investments are an essential componant to increasing level of wealth.

FINANCING ADVICE  

Financing options and availability are constantly changing. Some lenders obtain their funds from national sources such as the Federal National Mortgage Association (Fannie Mae); other regional lenders lend their own funds. Finding and choosing the most advantageous financing will have a positive impact on your cash flow and the return on your investment.

Lenders who act as conduits to sources such as Fannie Mae or firms who lend with Federal Housing Administration (FHA) insurance have to adhere to strict rules and guidelines relating to the characteristics, condition, and financial capability of the property. In most cases the structure of the financing, rates, and other terms are superior to loans available through local bank’s using their own funds (portfolio loans).

There are many regional banks and savings and loans who secure the funds they lend from their depositors and make portfolio loans. In most cases, they are more flexible with their guidelines and standards; they can make a loan that “makes sense” that would not fit into the rigid guidelines of government sponsored or insured lending programs. These loans are more likely to be adjustable, rather then fixed; come with a higher rate and sometimes fees; and normally have a shorter due date, five to seven years with a balloon payment as compared to a 30 year fully amortized.

When evaluating the viability of a potential investment, having reliable projected loan rates, amortization schedules, and other information is essential to preparing realistic projected pro-forma financial statements; which will be at the heart of determining the likely cash flow and return on investment of a property under consideration; and ultimately the maximum acceptable price. The consultants at Nationwide can assist you by contacting local and national lenders to provide you with information relating to the availability of financing for the property under consideration, restrictions and guidelines, and terms for each of the most competitive lenders in a position to lend.