What’s the Difference Between Buying Primary vs. Investment Property?

[Ken and Ari Walker]

The process of buying an investment property, though like buying a personal property, involves a handful of variations and considerations you should consider. Be prepared before you start the process, and you’ll avoid costly mistakes. Below are just some of the key ways buying either property differs: 

🔑 Property criteria: 

Investment property: Focus on the rental income, location, market trends. An investment property does not have to tick all your personal boxes. 

Personal residences: Emphasis shifts to personal preferences, and the property’s suitability for the buyer’s family. 

🔍 Market Analysis: 

Investment property: In-depth market research is crucial to identify areas with strong rental demand, potential appreciation, and favorable economic conditions. 

Personal Residence: Preferences and immediate neighborhood appeal play a mor significant role.  

💰 Lending Standards: 

Investment property: Traditional Lenders have stricter criteria for investors, requiring a higher down payment, even a property’s income earning potential. With private financing however, this isn’t the case.  

Personal residence: Requirements are more lenient. First-time buyers may benefit from programs that reduce down payment demands.  Private financing requires the same amount of down payment for a primary residence as it does for an investment property, at least 25% downpayment on the purchase price.  

No matter what, it is important to have a better understanding of real estate when planning to buy for any reason.  Best recommendation is to reach out to a local, licensed real estate agent and lender who can help provide you with information to make a more informed decision.  And we are available to assist with any fast, flexible & alternative Private Money loan programs in case conventional or traditional Underwriting qualifications turn you down for financing.   
 
 
Best,   

Ken & Ari Walker - Your Direct Private Money Source   

  

Husband & Wife Team   

Phone: [phone] / Office: 1400 N. Dutton Ave #22 Santa Rosa, CA 95401  
Ken: CA DRE Broker #01858042 / NMLS #1221130  
Ari: CA DRE #01858152 / NMLS #2170867  

  

Bio: Ken & Ari are a husband & wife team with over 30 years of combined real estate and private money lending experience.   They like working with buyers & borrowers, as well as directly with other licensed individuals who have clients in need of fast & alternative financing, and who can benefit from Private Money mortgages. (Qualify for our financing despite DTI ratios, credit score, property condition, difficult to prove income, etc. on purchases and refinances for owner occupied & investment properties.)