Landon asked, "Hey, Murph! "I'm thinking about buying a second home outside of Minnesota. What happens if I want to buy a second house, fill me in.
And this is great because there's a lot of people that are thinking about possibly buying a lake home right now. There's a lot of people thinking about a vacation rental down in Florida, or out in Wyoming, or wherever it might be that you want to hang out outside of your current state or your current location.
Here's what I told Landon. There are a couple of different things you need to think about.
Are You Self Employed?
Number one, are you self employed? Because right now, if you're self-employed, it's very difficult to get financing because the banks are nervous about people who are self-employed because you’re considered more of a higher risk, especially now post-COVID Shutdown because businesses got hit pretty hard.
Financing: Stay Local
Number two, where should you get financing? I would recommend, especially if you're self-employed to find a local lender, maybe a Credit Union. Credit Unions are really good right now and really aggressive. Also, consider a local smaller bank that really knows real estate in the area. A big bank in your local city it might be more difficult to get financing just because they're not as familiar with that specific location.
Check Inventory
The next thing is, start looking because inventory everywhere is super low. You're probably not going to find anything right off the bat. And make sure that you buy the property at a good value. Don't overpay.
Right now, lots of people that are buying are paying top dollar just because there's not a lot of inventory.
Ask yourself this, too … Will you be able to rent it out? Are you open to renting it out? If you are going to rent it out, who's going to rent it out and manage that property for you? And what are the property values? And do you have a real estate agent that's local, that's helping you try to find a good deal or maybe even a deal that's not on the market?
Okay. I went through a lot of different things and there's a lot more I can talk about. So, if you have questions about this topic, or anything real estate related on your mind, fill out the form below and we'll get right back to you with the answer!
Real estate doesn't have to be a mystery and doesn't have to be stressful, that's why I'm here. Ask away!
