INVESTOR FINANCING

  There are two basic types of real estate investors: those that buy and quickly resell, and those that buy and retain property for rental income.  Centurion Mortgage supplies financing designed to meet the needs of both of these types of investors.

The Buy and Sell (Flip) Investor
    Investors that purchase properties with the intent to quickly resell for a profit are usually interested in obtaining such properties for as little down payment as possible.  This allows the retention of cash on hand to be utilized for rehabilitation work and loan servicing during the holding period.  For this type of investor, we offer loans that require minimal down payment. 

    In addition to requiring a low down payment, we also offer a reduced closing costs package in exchange for a higher interest rate.  Though the interest rate is higher, the savings in closing expenses tends to greatly offset the additional interest expense.  In other words, if the higher interest rate translates into a monthly payment that is $75 higher than what would be obtained through the lower rate offered through the full closing cost scenario, and the holding period is 6 months, then the higher rate added $450 to the interest expense of the transaction.  However, the higher rate would be obtained only by taking the lower closing costs option, which would likely save well over a thousand dollars in closing fees.  Thus, because the investor knows up front that they will hold the property and the loan for a short period of time, the higher rate will mean a much better net yield when the property is sold.  This type of investor seeks quick cash from hit and run real estate transactions.

Investors in Rental Property
    For investors that acquire property with the intent on holding such investments as long term rentals, the strategy is much different.  Such investors usually put some cash in as down payment so as to improve the monthly cash flow.  Likewise, they seek as low of an interest rate as possible so as to keep the payment down.  Such investors are looking to invest capital, as opposed to the quick turnover investor that seeks to earn fast cash.  The rental property investor anticipates a combination of nominal income from rent, with the later windfall of profit from long term property appreciation. 

    Both types of investment strategies have a sound basis.  Different investors have different talents and approaches, hence the alternative methods.  At Centurion Mortgage, we understand both strategies, and strive to assist investors in obtaining the type of financing that maximizes their return.  If you are considering an investment purchase, contact us with your scenario, and we will put together a proposal that should fit your strategy just fine.

Beginning Investors
    If you are just starting out as an investor, give us a call and we will meet with you in person to discuss the various investment methods.  Many new investors wish to do something as simple as purchase a duplex or triplex, then move in and rent the other units out to offset the monthly mortgage payment.  These novice investors are amazed to learn that such properties can be purchased with the same type of financing that one gets with any owner occupied financing.  When a buyer purchase up to a four unit building and inhabits one of the units, the property is still considered owner occupied and is eligible for the best financing terms.

Interested in Buying Foreclosures or Fixer-Uppers?
    If you have a talent for construction rehabilitation and simple redecorating, you might profit from buying and selling foreclosures and fixers.  We offer financing for these properties, and can get you a list of all such properties in any Metro Atlanta area you are interested in.  For more information, link here.