What is a Sponsor?
Hello my name is Jeannie Orlowski welcome to the first edition of 60 second insights. In this series we are going to answer burning questions in 60 seconds or less.
A sponsor is someone who qualifies you for the mortgage amount. If you have a three million dollar property you are going to put 20% down. You will need to have the net worth equal to 2.4 million or the bank may require you to have a sponsor. They also may require you to have up to six months liquidity for mortgage payments- that you can co-sponsor with your sponsor who qualifies you for the mortgage.
Sponsors are everywhere. You can find them at local real estate investment club, you can find them in your own neighborhood, maybe even in your own family. People that just want to get a piece of the deal. They don’t want to do all the legwork that goes into getting a deal under contract doing the due diligence getting all of the necessary documents together in order to close on a property they just want to put up their tax returns and get a piece of the deal and that’s how you find sponsors. If you have any questions regarding sponsors, private money or any other burning questions leave it in the comment section below and perhaps next week we will be answering your burning questions.