Mortgages and your first

I imagine there are a lot of topics like this but once again I have a couple questions.

Do you use an ARM or a FRM? Why did you pick the one you are using?

When you bought your first property how did you finance it and what was your exit strategy? (Buy and hold, rehab, wholesale, etc)

Thanks again


I have used all kinds. Now I am using 30 year fixed for a couple of reasons. First, there is very little difference in rates between a 3 or 5 year ARM and 30 year fixed. Second, I see more downside than upside on ARMs right now.

well serio, you don’t need a mortgage if you’re wholesaling property, unless you want to go through with the contract if you do not obtain any buyers…then you would need some form of financing (or cash) to close.

you’re asking the right questions. i would say that it depends on your exit strategy.

it also depends on the deal itself - do you need conventional financing or can seller consider holding a note?

if you’re looking to buy and hold/rent - this depends on what type of property you’re buying, if it will take time for you to get it up and running (raise rents if possible)…but most likely, you’ll want a fixed term for rentals…unless again, your exit strategy is to rent it for 3 to 5 years and sell it (speculation of appreciating value).

if you’re fixin to buy, rehab and sell - well then that breaks down to your comfortability with an ARM…again, if you use conventional financing.

ditto on that. Also, I never go for less than 5yr ARM; have used 7 and 10yrs as well.