In this episode, we dive into the exciting world of investor loans with Jonathan from Convoy Home Loans. Did you know it's nearly impossible to get a conventional investor loan with just 20% down? Jonathan shares the inside scoop on a DCR loan product that offers investor loans with 20% down at interest rates in the low 7s, and even potentially in the low 6s if you're willing to put a bit more down. This is a game-changer for real estate investors, especially in lower-cost states where every percentage point counts towards your cash-on-cash return.

We also explore the nuances of maximizing your yield, the advantages of putting more down to secure better rates, and why conventional loans are becoming harder to obtain. Jonathan discusses how this new loan product can help investors lock in fixed debt for 30 years, ensuring predictable returns and minimal risk. Plus, we talk about the current market trends and why now might be the perfect time to jump in and secure these favorable terms.

Episode Highlights:

[00:00] - Introduction to investor loans with 20% down.

[00:44] - Market changes and the importance of getting deals to work.

[01:35] - Cash-on-cash return and the significance of saving 5% on down payments.

[02:26] - Understanding the formula for calculating yield.

[03:42] - Benefits of putting more down to get lower interest rates.

[04:56] - Why locking in a low 6% rate is a smart move for investors.

[08:12] - Challenges with conventional loans and stricter underwriting.

[09:06] - Risks associated with changing titles post-closing and the importance of compliance.

[12:29] - The potential role of AI in mortgage underwriting and audits.

[13:46] - Advice for investors considering DSR loans over conventional options.

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Closing Remarks:

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