As most readers know I’ve been lamenting the financing conditions for perfectly qualified real estate investors for quite some time. Well, last week there was a significant change. I have a client purchasing a Missouri fourplex. During negotiations he was quoted a minimum 30% down payment. But when it came time to lock in the rate after we arrived at suitable terms for all involved the 30% became only 25% required down payment.
Now, this sounds like a small movement. But it’s actually very significant. For instance, on this $260,000 property you are talking about being able to keep an additional $13,000 back for emergencies and/or future rental property acquisitions.
In this case, change is good.