How To Buy More Homes to Reach Your Financial Goals
For a lot of people, it is a bit of a leap of faith to commit to real estate investment, even though they know that this is their best chance to create future wealth for themselves and their families. This is a question I often get from people who may be hesitant about taking the plunge into real estate investing: “Is real estate investing easier if I already own property?” There is the idea that once I take the plunge, things will get easier. This is only partly true.
Does it get easier?
If you’ve bought property before – to live in, to make an office or to run a business, or as an investment, you know the nuts and bolts of it all. Buying property involves getting a loan, signing documents, and generally going through the closing process. Basically one knows what the whole exercise entails.
So yes, you do have the comfort of being familiar with the process and the next time around will be less intimidating and more familiar. However, beyond the psychological edge over a complete newbie, there are no major benefits. There are other factors that will decide how easy or difficult it is for you to get a loan, and how many loans you will be able to obtain.
Other factors that influence investing
The number of loans you can take out as an individual is limited, which is up to ten Fannie Mae loans per person. As I often joke with my clients, not even Warren Buffet gets more than ten loans! However if you're married, you can, as a couple, take out up to 20 loans, thereby increasing your chances of wealth creation for your family.
Lenders look at a potential borrower's income, type of employment, and credit history, as well as tax returns to decide whether or not to grant loans. A lot of lenders will prefer to lend to people who have already taken out loans to buy homes as investment over those that have not. This is because those who have already invested may already be generating a rental income for themselves. This makes them a more attractive type of borrower in the eyes of the lender. So if you're financially sound, you may be able to get up to ten, and as a couple, up to 20 home loans.
More details on this here.
If you have questions about buying homes to create retirement riches for yourself, we at ICG Real Estate are happy to answer them for you. We can help you take that plunge! If you like you can attend one of our quarterly real estate investment events before you decide.