Even if an investor starts out with plenty of cash on hand, it’s inevitable that some type of financing will be required as part of most real estate investing endeavors. One of the greatest benefits of real estate is the ability to use other people’s money, and that’s where mortgage brokers and lenders come in.
Having a mortgage broker that understands investor needs, and is well connected to those that can provide different types of financing options is another important partner for the real estate investor.
While your local bank or credit union will likely offer mortgages and loans, you’ll find a much wider array of options when partnering with an independent mortgage broker that can tap into multiple financing sources that align with your specific needs. Sometimes this will be institutions that the broker knows is offering the most favorable terms and conditions, or this may even be private investors seeking to invest passively.
What is the Benefit of Working With a Mortgage Broker that Understands Investors?
A well connected broker or lender that understands and can offer multiple financing options to fit your needs based on your varying situations will unlock opportunities to successfully invest when you find and come across deals that require 3rd party financing. These deals can be lost of the investor not can’t perform to make the purchase, but also if the investor cannot move quickly to secure financing.
A pre-existing relationship with a lender and/or financier can make the difference in successful completion of deals that you come across.