A Two-Minute Investment = Lifetime
Dividends
If
your client is a first-time homebuyer, do both of you a favor and consider a
multi-unit property. Obviously, most
first-time homebuyers are looking for that cute little house with a two-car
garage and a white picket fence – one of the symbols of the American Dream, of
course. However, consider for a moment
that many first-time homebuyers are willing to look at and embrace a “tweak” to
the American Dream: a revenue-generating investment. While most investment properties require a
fairly significant down payment, an FHA loan only requires 3.5% (and it can be
a gift). Making an even better case for this
type of purchase is the size of loan FHA allows for the following sizes of
properties:
o2-unit
property: $347,000
o3-unit
property: $419,255
o4-unit
property: $521,250
Your
buyer is only required to live in this property for 12 months. Once she’s hit the 12-month mark, she can
slide another renter into her unit and look for a single-family residence (if
she so desires). In addition to the
rental history she’s built up with her other tenants, she can immediately count
future rents for the unit which she’s just vacated as long as she has a
one-year lease signed for that unit – all of that will be used as income in
helping her qualify for the loan on the SFR (perhaps with a two-car garage and
a white picket fence).
We’re
not kidding ourselves into believing that every child dreams of being a
landlord when he grows up, but it doesn’t hurt to have a two-minute
conversation with your new buyer and present him with the option as outlined
above. He’ll thank you for presenting
him with all the options – and if he takes your advice, he’ll either be asking
you to find a house for him in a short twelve months or look for more
multi-unit properties, which means you could have a lifetime client looking to
grow and manage a lucrative portfolio.
We’re fairly confident that’s worth a two-minute conversation.
Expand Your Horizons
Relocation
and timing don’t always coincide with one another, and that usually leads to
the potential buyer signing a twelve-month lease on a rental property when
she’s moving to a new city because she thinks she needs an employment history
to qualify for a mortgage. For those
professionals with jobs that are tied to a contract (doctor, attorney, teacher,
nurse, dentist, etc.), we can
close
and fund 60 days before
their starting
that
new job
and use that
income to qualify. Put that information in your back pocket and
start marketing yourself all over the country – or around the world.
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