BiggerPockets Real Estate Podcast The Best Real Estate Loans You DON’T Know About
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Aug 20, 2025 Jeff Welgan, a seasoned lender based in Los Angeles, shares insider knowledge tailored for real estate investors. He discusses lesser-known loan options that can offer interest rates around 4%, even for those with low credit scores. Jeff reveals the significance of innovative programs like interest-only loans and highlights strategies for maximizing seller credits to reduce interest rates. The conversation also speculates on potential mortgage rate trends leading into 2025, making this a must-listen for savvy investors!
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Use 10-Year Interest-Only To Buy Time
- Use a 30-year fixed with a 10-year interest-only option to maximize short-term cash flow and manage vacancies or repairs.
- Treat the interest-only period as a bridge and plan to refinance or start paying principal before the 10 years end.
Weigh ARMs When Rates Are High
- Consider ARMs if the initial rate is low enough to offset long-term risk and you have a plan to refinance.
- Use credit unions or regional banks for competitive ARM offers but keep a Plan B due to stricter underwriting.
Dave's 7-1 ARM Example
- Dave used a 7-1 ARM through his brokerage relationship to get a lower initial rate on a rental.
- He chose it because seven years gives time to refinance or manage increases capped at half-point steps.