Jeff writes: How would you finance unconventional residential rentals (commercial) in this market?
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Welcome to the real investing show with Tim Herriage each day, we’ll provide real investing for everyday investors. Tim is a nationally recognized real estate investing expert podcast, host and public speaker. He built his businesses from the ground up and is here to help you do the same. Here is your host Tim Herriage.
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Welcome back to the real investing show. I’m Tim Herriage. Thank you for coming back today. Jeff rights, how would you finance unconventional residential rentals commercial in this market? Uh <laugh> well, I won’t say I wouldn’t because you asked me how I would. So right now in this market, Jeff, I feel like anything that’s not, I, I use this phrase a lot. Cookie cutter, bread and butter. That’s not just the three bedroom, two bath, two car garage, brick house in a nice neighborhood. Feel like a local. Bank’s gonna be your best option. Now, if it’s a mixed use property, we’re happy to look at it at RCN capital, but I mean, I, I just, it, I gotta have more, more information on this question, Jeff. So if I’m doing a fix and flip, I’m probably going through RCN because I can get more leverage. And right now I feel like, you know, debt is definitely cheaper than equity.
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If we’re talking long-term rental, depending on the loan size, I’m probably looking at a community bank mainly because, you know, typically with community banks, you’re not seeing prepayment penalties, typically they’re indexing their rates off of a wall street, journal prime, a li B, something of that nature. And typically they’re not dependent upon securitization execution to kind of, you know, fund the takeout of the loan. So I’ve always said this, even though I’m a national lender, you’ve got to keep your options open. There will be times in market cycles where the best thing is not the normal thing. So to tip, to stick to your question, if I had something that was unconventional in, in today’s market cycle that I wanted to fix and flip, I’d probably still go with like a larger national lender, like RCN capital. You can find us@rcncapital.com, uh, slash podcast. Uh <laugh> but if I was looking to keep it as a rental property with rates kind of jumping all over where they are right now, I’d probably go to a local community bank. So, Jeff, I really appreciate it. Thank you so much for taking the time to submit a question. If you’re out there listening and you have questions hop on over to, Ihavelunchmoney.com. I would love to answer your questions. I’m doing my best to get to every question. Uh, and I look forward to answering yours. So until tomorrow, have a great
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Day. Thank you for hanging out with us today on real investing. If you have questions, comments, or feedback, please visit Ihavelunchmoney.com. Tim, can’t wait to hear from you. We are always grateful for your reviews. And if you enjoyed this episode, please subscribe and share it with your friends. Remember the business is the vehicle, not the dream. See you. Next time. The proceeding program is provided for general education purposes only and does not constitute legal tax, financial investment or other professional advice. No information contained in this program should be construed as financial investment or legal advice from any individual author or post or guest. You should always consult a financial advisor before investing.
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