Category: DC Fawcett real Estate Tricks

Dc Fawcett – The Dos For Becoming Eligible For A Loan On Investment Property

Purchasing of the rental properties is one good way to put money into, but being eligible for a loan on investment property is not that easy. Being eligible for a loan on investment property is a herculean task when compared to being eligible for a loan accrued on a property that is owner occupied.  It will need addition shelling out of money.  Most of the banks take into account the loans more risky than owner occupied loan amounts.  It makes it difficult for the investor to being eligible for the loan.  An investor can opt for many things to get cleared on becoming eligible for an investor loan.

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The ABC’s for qualifying for home mortgage

When one wants to become eligible for a home mortgage, most of the banks consider multiple aspects.

  • Debt to income ratios:

There is the ratio between the money you earn each month versus the debt payment you have for every month.  It depends on the loan amount for a bank to give consent on the loan.  Many people opt for the 30-year mortgages because it is more viable to accrue more loans on properties due to debt to income ratios.

  • Time spent at the job:

Most of the banks prefer to look at a borrower at the same job for a couple of years before they offer a loan.  If the borrower changes job, but is in the same field, banks will be ready to offer a loan.  The bank will require verifying the salary, and this makes it a herculean task for those who have retired to accrue a loan.

  • Credit Score:

A few of the loan programs enable credit scores which are under 600, but when the score is low, there are additional fees and expenditures.

  • Tax returns:

Banks will resort to verification with the tax returns.  If one furnishes scant income, it will be difficult to get a loan.

Is it more complex for investors to qualify for loan when compared with owner occupied properties?

There are the new renting regulations, and has it become difficult for investors to acquire a loan on rental properties? If one is an investor and requires a loan on more than ten properties, things are not in the favor.

The main issue for investors to be eligible for the loan is that they have to be eligible for two houses if they have a loan placed on their house.  It is not advisable for people to purchase house for the exorbitant amount.  The debt to income ratio should be low for the investor to qualify for the loan.  If you furnish more qualification on the personal home, it will become more arduous to become eligible for a loan on investment property since it hikes the debt to income ratio.

Is more money required by banks for investment loan to become viable?

Many of the banks require at the least 20 percent down payment on an investment property loan.  Those residences which are owner occupied need no additional investment. But, sometimes the banks require investors to be more diligent in the game.  The origination fees, appraisal fee and the cost of loans may become exorbitant, and it depends entirely on the type of investment property that is purchased.

The Final Say :

It is particularly more complex to accrue a loan as an investor, and less difficult if the loan is availed of as an owner occupant.  Planning is very important when one plays the role of an investor.  It is preferable to talk to a lender if you are interested in purchasing an investment property to observe whether you are eligible, or what is required out of you to be eligible.

If one needs more details on how to purchase the best rentals that will get the best profit, one may skim through the blogs by DC Fawcett, the founder of the Virtual Real Estate Investing Club.

Real Estate Investment or Stock Investment – DC Fawcett Training

Which is better to invest in real estate or stocks?

Read this valuable review by DC Fawcett


Real estate is the land and the buildings on it and also includes natural properties like crops and minerals. Stock is a type of security in a firm which lays a claim on the profits and assets of the firm. Both real estate and stocks are good for investing. Real estate investment has earned an average return of 8.6% from 1978-2004, while stock earned 10.6575%.  So how do we decide which is better for investing? While we can see that stock has earned a higher return on an average,  real estate is a tangible asset. So we must first analyze the pros and cons of both to decide which is one step ahead for investing? We can do this easily by reading DC Fawcett reviews

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Real Estate:

People can relate to real estate easily as it is an appreciable and tangible asset. There are two main types of real estate:  commercial and residential. Investing in real estate is not easy as it is not monotonous. A thorough analysis of the pros and cons of investing in various types of real estate must be done (A separate topic of discussion by itself) before deciding how we are going to make money out of real estate.

Pros and Cons of real estate investments

        Pros of real estate investments

  • It results in tax deductions

  • It is an appreciable asset – prices have appreciated to nearly 20% in the United States from the year 2012-2015

  • If we sell a property and invest in a similar one , we are not liable to any tax;

Cons of real estate investments

  • For real estate to appreciate it takes time and we cannot sell it easily.

  • Real estate prices either increase at a slow rate or stay flat – housing prices rose by 6% in 2015 and they are predicted to rise by 3% in 2016 as surveyed.

  • The closing cost can be a lot in terms of commission and taxes

    Pros and cons of stocks

      Pros of stocks

  • Stocks are easy to sell. Stocks often do better than real estate in a year .

  • Stocks can be reallocated even into a retirement account

  • Stocks tend to increase a company’s growth.

      Cons of stocks

  • Stocks are very unstable and depend heavily on economic situations. When the economy is bad stocks do really poor.

  • Sometimes decisions related to stocks can be illogical within the market.

  • We are always in the danger of our stocks getting dissolved due to bankruptcy


Stocks have a real edge in some areas but real estate is better in terms of stability and taxes. Also some disadvantages of real estate can be nullified- for example when we invest in real estate, diversification is not possible but when we invest in real estate investment trusts then it is possible to overcome this disadvantage. On the whole your financial position and comfort determine the type of investment area.