Why Investors Use Interest Only Financing For Rentals

How Interest Only Funding Affects Cash Flow

What you'll learn

Different loan types

Why investors use interest only loans

Why some investors do not use interest only loans

What market environments make these types of loans more appealing

Requirements

Some real estate experience is helpful but not requires

Description

How you structure the financing for a real estate deal is important to the long term profitability of that deal. Ensuring cashflow is essential to growing your portfolio.I work with real estate investors across the country and the types of funding products that they utilize have changed as rates have risen. It is important to look into the math on a deal and examine not just the short term but long term profitability of an acquisition. In this course I will go over what the majority of investors I am working with are doing to ensure that they have short term and long term profitability. We will discuss:Interest only Long Term 30 year loans and their interest only periodsInterest only Bridge Loans and their applicationsWith an interest-only mortgage, you only pay the interest on the loan. At the end of the term, you'll still owe the original amount you borrowed. The main advantage of paying a mortgage on an interest-only basis is that your monthly payments will be much cheaper. This allows you to Cash Flow. In real estate investing Cash Flow is the focus.Interest-only loans are generally for those folks that are probably not going to be in the property for a long period of time such as 5, 7, or 10 years. OR in times when there are high interest rates and your plan is to refinance into a lower rate fixed loan once  rates have gone back down.In this course we will help you better understand the structure of this type of funding and how to make use of it in your portfolio.

Overview

Section 1: Introduction

Lecture 1 Introduction

Lecture 2 Different Types of loans

Lecture 3 What is an interest only loan?

Section 2: Why?

Lecture 4 Why interest only loans

Lecture 5 When to use interest only loans

Section 3: Why not? - disadvantages

Lecture 6 Disadvantages

Lecture 7 The argument against

Section 4: Funding Examples

Lecture 8 Interest only as a good option

Lecture 9 Interest only as a bad option

Real estate investors,Aspiring real estate investors