Become the Go-To for Investors
Written By: Frank Borelli
Throughout my time in the mortgage industry, I’ve found one thing is for certain… investors in real estate can make for great clients — and repeat customers through refinancing. As they generally make more property purchases than traditional home buyers, targeting the specific needs of these investors with Non-QM Investor Cash Flow is a strategic move to growing your business.
Why might investors want to go the Non-QM route?
The requirements for traditional qualified financing are set for the masses, with the most common types of borrowers in mind. Investors often don’t fit that mold. But Non-QM Investor Cash Flow doesn’t hinge on employment information and tax returns as QM does. With their non-traditional incomes and financing needs that are usually more complicated than the average borrower, investors likely mesh well with Non-QM products.
Stress that the focus is on the investment more than on the investor.
One would do well to point out to potential investor clients that they often can’t use proposed rental income to qualify for Fannie Mae, VA, FHA, or Jumbo loans. But many Non-QM products are designed specifically for non-owner occupied deals that are common with real estate investors, even if the investors have no experience as landlords. With Investor Cash Flow, the projected cash flow of the property is the main determining factor for qualification, not the personal income of the investor.
Appeal to an investor’s desire for increased profits.
Investors are in it to make money. Bottom line. It’s why they invest. Non-QM products may make it possible to purchase additional properties when compared with conventional financing that may be tougher to qualify for, and increase the income potential for investors.
Options for LLCs
As a hedge against the ramifications of an investment loss, lots of investors look to erect a wall between their personal finances and those of their investments. Setting up a Limited Liability Company (LLC) can be a sound way to do that. But this can cause a roadblock when it comes to obtaining a mortgage for the purchase of a new investment property. Thankfully many Non-QM products allow financing when the home is owned by an LLC, providing further flexibility that is appealing to many investors.
Point Out Fast Financing
At Luxury Mortgage our streamlined process allows us to move quickly from application to closing. A client who is quickly served is a happy client.
Feel free to Contact us with any questions you may have. Our Simple Access® Non-QM Investor Cash Flow product can be the game changer in your 2022 business.