How To Evaluate Loan Options

The Same Day Podcast

Rockford Steele is the Vice President and Loan Officer at Stout Funding, a commercial loan brokerage helping real estate investors secure funding. As an active real estate investor with a portfolio of rentals, he has been a financial advisor, property and casualty insurance agent, and realtor.

In this episode…

When it comes to securing loans, real estate investors often lack the bandwidth to determine the best loan or lender. Fortunately, loan brokers are available to help borrowers decide which type of loan meets their financial needs, assessing commercial and private lenders and determining the ideal type of loan for the borrower's situation. How does a broker help you find the appropriate loan to fit your investment goals?

As a financial advisor turned real estate investor and loan officer, Rockford Steele can help you navigate the complexities and narrow your loan choices. Conventional 30-year loans offer many options, including lower fixed or adjustable rates, but the qualifications are generally stricter. If you choose a federally backed loan — like a VA or FHA — it's easier to meet the criteria, particularly if you have a low credit score. However, a commercial loan may be a good choice if you're a business or LLC; although the interest rates may be higher and the loan period shorter, the application process is often simpler. Real estate investors may choose a DSCR (Debt Service Coverage Ratio) loan if their DSCR is high enough so the cash flow is better, providing them with a favorable rate. With so many factors and variables, it's beneficial to have a broker on your side to navigate the complexities.

In this episode of The Same Day Podcast, Rockford Steele, the Vice President and Loan Officer at Stout Funding, joins Mat Zalk for a discussion about real estate investment loans. Rockford explains the various types of loan options, how interest rates are determined, and which loans are best for the different asset classes.