Investor Loans with 20% Down in LOW 6-!!! WHAT?!

Investor Loans with 20% Down in LOW 6-!!! WHAT?!

Author: Michael Zuber July 22, 2024 Duration: 14:57

In this episode, we dive into the exciting world of investor loans with Jonathan from Convoy Home Loans. Did you know it's nearly impossible to get a conventional investor loan with just 20% down? Jonathan shares the inside scoop on a DCR loan product that offers investor loans with 20% down at interest rates in the low 7s, and even potentially in the low 6s if you're willing to put a bit more down. This is a game-changer for real estate investors, especially in lower-cost states where every percentage point counts towards your cash-on-cash return.

We also explore the nuances of maximizing your yield, the advantages of putting more down to secure better rates, and why conventional loans are becoming harder to obtain. Jonathan discusses how this new loan product can help investors lock in fixed debt for 30 years, ensuring predictable returns and minimal risk. Plus, we talk about the current market trends and why now might be the perfect time to jump in and secure these favorable terms.

Episode Highlights:

[00:00] - Introduction to investor loans with 20% down.

[00:44] - Market changes and the importance of getting deals to work.

[01:35] - Cash-on-cash return and the significance of saving 5% on down payments.

[02:26] - Understanding the formula for calculating yield.

[03:42] - Benefits of putting more down to get lower interest rates.

[04:56] - Why locking in a low 6% rate is a smart move for investors.

[08:12] - Challenges with conventional loans and stricter underwriting.

[09:06] - Risks associated with changing titles post-closing and the importance of compliance.

[12:29] - The potential role of AI in mortgage underwriting and audits.

[13:46] - Advice for investors considering DSR loans over conventional options.

Links & Resources:

Closing Remarks:

If you found this episode insightful, please rate, follow, and share our podcast. Your support helps us bring more valuable content to you. Happy investing!


Michael Zuber’s One Rental At A Time is for anyone who’s ever looked at real estate investing from a distance, intrigued by the possibility of financial independence but convinced their current schedule makes it impossible. This podcast dismantles that assumption by focusing on the steady, incremental approach that its title suggests. Instead of complex theories or get-rich-quick schemes, you’ll hear practical conversations about the tangible steps involved in acquiring and managing rental properties. The discussions stem from Michael’s own journey and the experiences of many others who have built a meaningful second income stream through this method. Each episode feels like a straightforward talk about turning a sidelined idea into a actionable plan, addressing the real balancing act between work, family, and building something for the future. Tuning into this podcast, you’ll find a grounded resource in the business and investing space, one that emphasizes how long-term holding and thoughtful acquisition can quietly reshape your financial landscape without demanding you upend your existing life overnight.
Author: Language: en-us Episodes: 100

One Rental At A Time
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