BiggerPockets Real Estate Podcast

847: How to Fund Real Estate Deals Right Now w/Zach Lemaster

Nov 22, 2023

Zach Lemaster, real estate financing expert, shares valuable insights about financing and funding real estate deals in 2023 and 2024. Topics include underrated rental property loans with low interest rates and low down payments, the pitfalls of focusing solely on interest rates, understanding different loan options, and exploring unconventional financing options like seller financing and syndication deals.

01:04:15

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Episode guests

Zach Lemaster

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Quick takeaways

Understanding different loan options is crucial for financing real estate deals in 2023 and 2024.

Building a strong relationship with a lender and discussing your investment goals can lead to personalized loan recommendations.

New guidelines from Fannie Mae and Freddie Mac provide more loan options for self-employed individuals based on their income from the previous year alone.

Deep dives

Conventional Loans: Understanding the Basics

Conventional loans are the typical Fannie Mae Freddie Mac loans that require a 20% down payment for investment properties. They offer a 30-year fixed rate mortgage and usually allow up to 10 loans personally, or 20 loans for couples. It's important to shop for lenders and find the best loan terms based on your buying criteria. Understanding your financing options is crucial, and conventional loans are often evaluated in real estate proformas.

Introduction

3min

Real Estate Deals and Investing Out of State

5min

Challenges and Solutions in the Real Estate Market

16min

Understanding Loan Options and the Pitfalls of Focusing on Interest Rates

4min

Managing Short-Term Rentals with Hospitable

5min

Exploring Financing Options for Real Estate Deals

28min

Discussing the Trend of Flashy Ads on TikTok and a Funny Car Rental Experience

2min

Promotion of Social Media Profiles, Guest Introduction, and BiggerPockets Bootcamps Advertisement

2min

Yes, there are STILL rental property mortgages with low interest rates AND low money down, even in 2023. These investment property loans are unknown to most real estate investors simply because they don’t know where to look or who to ask about them. Which loans are we talking about? Stick around because today, we’re uncovering all the ways that YOU can finance and fund your real estate deals in 2023 and 2024, even when getting a loan is harder than ever before.

If you’ve been struggling to put properties under contract because your financing keeps falling through, this is the episode for you. After running into numerous closing table conundrums and non-stop financing fatigue, many real estate investors are giving up on buying new properties due to banks’ lack of liquidity and eye-watering loan requirements. But that isn’t stopping David, Rob, or today’s guest, Zach Lemaster, from closing deals.

In this episode, we’ll go through the loan options that WORK in 2023 and 2024, the creative financing you can use to fund your next deal, and the often unknown loans that STILL offer only three percent mortgage rates or just five percent down on rental properties (seriously). If you haven’t tried these loans yet, you could be missing out on some of the best deals of the decade.

In This Episode We Cover:

The underrated, often overlooked rental property loans with low interest rates and low down payments

Why getting a thirty-year fixed-rate loan may NOT make sense in 2023 and 2024

Whether to secure the debt or the deal first on your next real estate investment

Loan “covenants” you MUST look out for before getting any new mortgage

Mortgage rate predictions and where interest rates could be over the next five years

How to build a relationship with banks/lenders so you ALWAYS get funding

And So Much More!

Links from the Show

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