Traditional Real Estate
I see so much these days on creative real estate I am just wondering if anyone is finding a good property, going to the bank and getting a loan and being a landlord. Is anyone doing this? Is this still a viable way to make it in real estate?
Absolutely, as long as it is worth it when closing costs and other settlement fees still make the deal worth wild.
Depending on your state, the average closing costs for a loan are $2500-4000. And points usually are around 1.5K.
That usually adds 25-30 dollars to the monthly payment to include these costs.
As a loan officer, I have found that a lot of investors go for a 7/1 (7 years fixed, and then it adjusts)...this gives a really low rate to save money and put towards the principal...
There are also special COSI loans that are interest only....this is good for investors that know the property will appreciate in the next few years and aren't worried about knocking down the principal balance.
It's out there...I usually deal with 3-4 investors a month. This is what they do for their loans.