Sam Martinez knows the world of real estate rather well. Serving as the current CEO of direct lending bank Elite Loan Advisers, Sam has plenty of real world experience with the truths of real estate investing from the lender’s side. He has formed some key tips for investors that mainstream real estate gurus, although well-meaning, may not often mention. Read more about these essential tips for real estate investors below.
Don’t underestimate financing
According to Sam, the financing part of any deal can make a great deal a bad one and a bad deal a very good one. Oftentimes, professional real estate investors fail to be in tune with what financing options a property has, which could make a world of a difference when it comes to the bottom line.
Don’t underestimate a good lender
Unfortunately, some loan professionals can be short-sighted and profit-driven, meaning that, in the end, the client ends up paying the price, by not getting the best loan product and terms. A focal point for any serious real estate investor should be having a lender in their corner who understands multiple loan types, not just one, and can help devise the most advantageous loan structuring for the given situation.
Be aware of all your loan options
Many investors may have their own routine, which may consist of a fix-and-flip hard money loan or a standard debt service cover ratio loan. According to Sam, there are even more variations of these loans which can be far more accommodating, yet are rarely used, as it is up to the lending professional involved to know how to apply them for the maximum client benefit. This may come in the form of lower interest rate, lending term and or ease in access to funds for rehab. Clients shouldn’t be afraid to bring this up with their lender, and if the lender is not well-versed on the different loan terms, perhaps go find another lender that is.