Welcome to another episode of InvestorComps' Invest Anywhere From Anywhere Podcast with host, Mark 'MJ' Jackson, where you'll gain the confidence and knowledge to profit when you buy real estate. In this episode, MJ introduces Bruce Canada from Atlantic Bay Mortgage, an expert with extensive experience in the mortgage space. They delve into the intricacies of leveraging for single-family acquisitions, second homes, and investment properties, particularly within the context of the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method.
Bruce shares his journey in the mortgage industry, from wholesale lending to retail, emphasizing the importance of face-to-face interactions with clients, especially first-time homebuyers. They explore key factors for first-time homebuyers, including credit scores and down payment assistance programs.
The discussion extends to FHA and conventional mortgages, credit score requirements, down payments, and mortgage insurance. Bruce emphasizes the significance of good credit and the necessity of having some financial reserves when entering the competitive real estate market. They discuss the growing gap between renters and potential buyers, highlighting the importance of timely action in real estate.
MJ and Bruce also explore utilizing home equity lines of credit (HELOCs) and the potential to tap into that equity for investments. The conversation touches upon investment property criteria, the amount that can be refinanced, and how banks limit the use of rental income for qualification. They also discuss how long you might need to wait after acquiring a property before doing a cash-out refinance.
In summary, this episode offers valuable insights for first-time homebuyers and real estate investors, shedding light on navigating the mortgage market, effectively leveraging equity, and maximizing returns on investment properties.