An investment property is a property that is not your primary residence and has been purchased with intent to generate revenue, either through the future resale of the property, rental income or both.
An investment property can be a long-term project or an intentional short-term investment where real estate is purchased, remodeled or renovated, and sold at a profit.
Yes. In comparison to homes purchased as the primary residence, taking out a loan for an investment property often comes with higher interest rates and a larger down payment. It can be difficult to receive a loan on an investment property, particularly in Orange County, San Diego County, and Los Angeles County, so the borrower must be prepared to put down at least 20% of the home price as a down payment and be able to prove good credit scores.
It is important to be patient and well-informed about the market value of the property you wish to purchase. Selecting real estate that is more likely to increase in value is the most important decision you will make, therefore, buying at the right price is crucial.
Before you purchase the home, have a professional building inspector perform an in-depth inspection of the property to find any potential problems as this may hinder your profit potential. Thereafter, it is recommended to do an in-depth inspection annually.
Loans for investment properties usually accompany a higher interest rate. Be prepared to put down at least 15 percent of the property price as a down payment on the loan and ensure that your credit is in good standing.
Contact The Eric Vavere Team today for any interest in becoming involved with investment property or investment property loans!
We had an aggressive pre-approval timeline and an aggressive loan contingency timeline, and Eric’s team met those milestones. Eric also gave great advice, and the rate we received was extremely competitive. Thank you for the great experience.Yip
Eric and his team were great to work with. They locked me in at a great rate and helped me achieve a pre-approval that made my offer more competitive. Eric even went out of his way to call the listing agent to solidify my offer when there were multiple competing offers. Without this, I am unsure if the seller would have accepted my offer. Thanks again, Eric!Tikker
Eric and his team were efficient, thorough, and very helpful throughout the whole process. As first-time buyers, we had many questions; Eric and Team were very informative and proactive when explaining each step. They were always quick to respond to communications and got us closed in 21 days. We would definitely use them again in the future.Radtke
Professionalism from top to bottom. Still can’t believe how smooth things went. One of the best teams to work with. Thank you so much Eric and team and look forward to doing continued business in the future.Michel
My wife and I recently purchased our first home. We worked closely with Eric Vavere on the loan. Eric was patient, knowledgeable, and supportive throughout the purchase . He took the time to understand our situation and advice us on the best approach to secure a loan. The actual loan process was smooth and clear. We were able to communicate with Eric and his team easily and we understood each step in the process thanks to his communication. We would definitely work with Eric and his team again!Madigan
When it came time to perform, they were lightning fast and were able to give us a competitive edge with fast loan and escrow times. Everyone that communicated with me from the team were very friendly. Highly recommend Eric and his team.Kim
Eric and team were incredible – quickly providing me confirmation of a loan, and coaching me through the process every step of the way. Super grateful to Eric and team for helping land me my dream homeDeyan