An investment property 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 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.
Loans for investment properties usually accompany a higher interest rate. Be prepared to put down at least 15 percent of the property price as a down payment on the loan and ensure that your credit is in good standing.
Contact CostPro Lending Team today for any interest in becoming involved with investment property or investment property loans!
As a first-time homebuyer, you know the process isn’t guaranteed to be smooth. More than anything you hope that your lender will work hard to help your dream of homeownership come true. That’s exactly what Bobby did and in the midst of a pandemic. No, how about during the week the lending guidelines changed. It was unprecedented what was happening all around us. People with credit scores that would more than likely close on a loan were being rejected. I was one of those people with a “decent” score, and with the strict and tight guidelines being changed every hour. We weren’t so confident we would get cleared to close. I know for a fact other lenders would’ve walked away the moment they saw the challenge ahead in closing this deal. Bobby not only fought for our loan, he even battled with not so pleasant parties in the transaction. He was professional at ALL times and never once lost his cool even though I did (not towards him of course). He was knowledgeable and held our hands throughout the whole process reassuring us this was our home. He didn’t lie. Cinco de Mayo will forever be special for the Browns. On that day we bought our dream home!!! Thank you so much, Bobby. You already know…you’re our go-to for the next purchase or refi!KeKe Brown
We recently purchased a $795K home with Babak (Bobby) Afrasiabi as our loan officer. He was outstanding to work with. A few of the things that stood out were his knowledge of the process. He very accurately laid out the next steps in the process which gave me peace of mind which in turn minimized my stress levels. I also want to commend him for being very forthcoming on the rate and closing costs. From the beginning of the process, I asked him what rate he thought he could get us and he actually did better than he initially surmised. He also gave me a very accurate closing cost range. This was important because it allowed me to mentally see the finish line with a number I felt comfortable with. The final closing cost was right in the range he initially gave me. Lastly, what also stood out was his availability. As a first-time homebuyer, I had quite a few questions. Bobby had great response times via email and text. If you are looking to close on a home there is no one better to choose as your loan officer than Babak (Bobby) Afrasiabi. I give him 5+ stars!Rodney Rambo
Bobby very helpful all the way throughout refinance process. He made everything so simple and easy. It was a great pleasure to work with him and all the others that helped with the process.Tommy Faulkenberry
You’d think three reviews is enough, but good work is always worth commending. This round was a vacation home purchase, and it was certainly the most complicated deal we’ve done. You’ve got the time zone difference with Hawaii, the building was fee simple but there was a leasehold portion of the property’s parking, the building was also in a flood zone, etc… despite the odds stacked against us (and I do say “us” as this is a team effort when you’re buying a place) Bobby’s persistence, knowledge and people skills prevailed. The best part, I knew he’d get it done, from day one, and to top things off, we closed early. It still blows my mind how well Bobby is able to keep up with all the moving parts of the transaction, especially since I know this guy is working on multiple other deals all at the same time. So if you can’t already tell, I am going to be working with Bobby on the next project, give or take another year and you’ll see another review!Ivan Drury
I was transferred to Bobby, the agent, he was very brilliant and he explained all costs briefly, no surprises. Very detailed, once you completed the application and submitted all the required documentation, the processing was very fast. Thank you so much and I appreciated your help. Great job Bobby. You’re awesome!!Analynn Nelson