Understand loans. Debt is cheap and leverage is how you outperform every other asset class.

Getting Started with Loans

Determine your occupancy

The intended use of the property will determine the available rates lender will lend to you. The lowest will be your primary residence, then Second Home, and investment (1-4 units), and then commercial.

Primary Residence

• Must live in the home for the majority of the year
• The lender usually offers the lowest rate for primary residence because you are most likely to repay a loan for the home in which you are actually living.

Second Home

• Must live in the house for some part of the year
• Some lenders do not allow the home to a rental, airbnb, timeshare, or be under a property management agreement. (Please check with your lender prior to finding a house)
• Require to be a certain distance away from your primary (100 miles usually)
• Second home may offer at primary residence rates or a percent above. Sometimes less than investment properties due to lessor risk.

Investment

• A property you are collecting rent from and do not live at

Mixed-Use Property

• The property must be a one-unit dwelling that the borrower occupies as a principal residence.
• The borrower must be both the owner and the operator of the business.
• The property must be primarily residential in nature.