An investment property, unlike most residential properties, 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 such as in the event of flipping, 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.
Investment properties usually accompany a higher interest rate. Be prepared to put down at least 20 percent of the property price as a down payment on the loan and ensure that your credit is in good standing.
Contact The Kolesar Team today for any interest in becoming involved with investment property or investment property loans!
We cannot say enough about our real estate agent, Chris Fox, and Sean Stanfield with the Kolesar Team ! Their professionalism, caring nature, extensive knowledge, and ongoing communication was impressive. Throughout our home buying process, they were extremely patient and responsive, which helped make this experience enjoyable (and definitely not stressful)! The entire team is trustworthy, and we highly recommend them for your next real estate transaction!Kelli Bremonte Cardenas
This is my second loan in 6 months and the efficiency and patience with Tiffiney and Branden were fantastic as usual. I would use them again.Deanne Bourne
I had the best experience with The Kolesar Team ! We really had no clue how to even begin the loan process and they helped us through every step of the way. Thanks again team!Arielle Dumaw Whitman
I don’t normally make endorsements of other people’s companies, but when I do – I mean it! We are beginning our 5th deal with Brendan Kolesar and his Team of experts (with 2 more hopefully in the pipeline). I’ve spent a lifetime in this business, many of my old friends have either died or retired. This caused me to seek out new young blood to work with. It isn’t easy finding professionals that really understand their profession, all the related nuances, have excellent communication skills, provide outstanding service, and are more than competitive with rates and fees. I highly recommend Brendan and The Kolesar Team!Ron Martin
Brendan and the team are as good as it gets! I’ve done multiple transactions through them over the past 5 years now and I guarantee you will be happy you used them.Scott Brouse