Real Estate Investing

Diamond Residential Mortgage Corporation believes in the power of real estate as part of a diverse investment strategy. We have loan programs that can make it easier to buy and sell investment properties so that you can focus on building your portfolios. That’s why real estate investors love working with us. Contact one of our knowledgeable DRMC loan experts who can help guide you through our suite of investment solutions.

Want to learn more? Let’s take a closer look.

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Investment Loans

What are Investment loans?

An investment mortgage loan is a type of loan that is used to purchase or refinance a property that will be used for investment purposes. The property may be rented out to generate rental income or held for appreciation in value over time.

  • Finance multiple properties
  • No Income Investor Loans (DSCR)
  • Fix and flip loans
  • Small balance commercial loans
  • SBA Lending

Here are some pros and cons of investment mortgage loans:

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Pros of Investment Loans:

  1. Income generation:
    An investment property can generate rental income, which can help cover the mortgage payments.
     
  2. Appreciation:
    The property may appreciate in value over time, providing a potential long-term gain.
     
  3. Tax benefits:
    There may be tax benefits to owning an investment property, such as the ability to deduct mortgage interest and property taxes.
     
  4. Diversification:
    Investing in real estate can be a way to diversify your portfolio.

 

Cons of Investment Loans:

  1. Higher interest rates:
    Investment mortgage loans typically have higher interest rates than traditional mortgages.
     
  2. Stricter requirements:
    Lenders may require a larger down payment and have stricter qualification criteria for investment mortgage loans.
     
  3. Property management:
    Managing an investment property can be time-consuming and require additional expenses, such as property management fees.
     
  4. Market risk:
    The value of the property may decline over time, resulting in a loss.

 

Good candidates for investment mortgage loans include:

  • Those who have a solid financial foundation and can comfortably manage the additional expenses and responsibilities that come with owning an investment property.
     
  • It is also important to have a clear investment strategy and understanding of the local real estate market to make informed investment decisions.
     
  • Those who are seeking to diversify their investment portfolio and generate income may also be good candidates for investment mortgage loans.
     
  • Please consult with a financial advisor or real estate professional to determine if an investment mortgage loan is the right choice for your individual circumstances.

Contact one of our knowledgeable loan specialists who can help guide you through our extensive suite of loan products for a mortgage solution tailored to meet your specific needs.