In this episode, Scott shares expert insights on how investors can strategically work with different types of lenders to build an unlimited real estate portfolio.
Key Timestamps:
[0:00] Investment Motivations
- Early retirement goals
- Income supplementation
- Wealth building strategies
[4:30] Types of Lenders
- A Lenders (major banks, credit unions)
- B Lenders (alternative financing)
- Commercial lenders
- Private/MIC lenders
[8:45] A Lender Strategies
- 50% rental income calculations
- Property limits
- Qualification requirements
[12:30] Advanced Lending Options
- 80-100% rental income programs
- Property count maximums
- Asset requirements
[16:45] Commercial Solutions
- Single-family qualification options
- Cash flow focus
- Lower down payment requirements
[21:15] Strategic Planning
- Lender order importance
- Portfolio maximization
- Rate considerations
[25:30] Commercial Benefits
- Property-focused approval
- Competitive rates
- Flexible qualification
Key Lending Insights:
1. Lender Categories
- A Lenders: Traditional banks, credit unions
- B Lenders: Alternative financing
- Commercial: Property-focused lending
- Private: Individual and corporate options
2. Strategic Approach
- Start with limited-property lenders
- Progress to flexible rental calculations
- Utilize commercial options
- Avoid B and private lending when possible
3. Commercial Advantages
- Cash flow based approval
- Lower down payment options
- Competitive rates