Todd Polke explains why flexibility and liquidity matter more than interest rates when building a property investment portfolio. Low-doc loans let investors without strong financial documentation access capital creatively.
For those who don't have the financials that stack up and that need a low-doc loan, what are some creative ways they can do that?
Yeah, great question. So one thing I see a lot of people get caught up in is they get caught up in the cost of the money and what interest rates are and zero in on that one element and they fail to see the forest through the trees, right? To me, when I'm thinking about things like that, the cost of the money is not the most important element to me. It's actually number 4 on my criteria of how I look for a loan. Flexibility and liquidity is always number 1. For those who want to build a multimillion-dollar investment portfolio, especially with property, the most important thing is not the cost of the money. It's your ability to continue accessing capital on a consistent basis.
