No limit on your investment property portfolio!!!

Comments(3) By Mike Miller •September 11th, 2008

DON’T TURN AWAY INVESTOR CLIENTS!!!

STATED INCOME FOR NON-OWNER OCCUPIED???

NO LIMIT TO AMOUNT OF FINANCED PROPERTIES!!!

WOW!!!!

As you may have heard, FannieMae and FreddieMac have been implementing new guidelines regarding non-owner occupied transactions. There was a time when an investor could own as many investment properties as they wanted with no limitation.   Fannie stepped in and limited it to 4 investment properties max and Freddie is limiting investment buyers to 10.  Most lenders will only allow 4 financed properties, which includes the clients primary residence as well.

As you know there are tremendous investment property opportunities out there right now. But what are we to do as Real Estate professionals when we come across a qualified investment property buyer who exceeds these limits?  Most are turning them away, unless they are paying all cash. Others are going through with an offer and getting into escrow, only to find that their client cannot get a loan because of these limitations.

DO NOT TURN THESE CLIENTS AWAY!!!

Here at Capital Market Funding we have a large National Bank that has a solution for your investment property buyers. Our clients can own and finance as many properties as they would like, with very few restrictions.

Great Credit / Employed / 25% down / Loan Amount below $417,000

As an added bonus this product is available on a “Stated Income” basis for self-employed borrowers which translates into an easier process for you and your client.

You would certainly expect the rates to be real high, but I have seen some investors actually take out hard money loans with interest rates over 10% because of the restriction, but check this out, today we are at 7% with one point for a 30 year fixed with no prepayment penalty.

That’s better than some small local banks owner occupied rates!!!!!

I urge you to notify all of your investment property clients of this tremendous loan opportunity, it will NOT last forever.

HINT: if you have a client who paid cash for an investment property, have them call me, we will pull out 50% of their equity and you get to sell them ANOTHER property, EVERYBODY WINS!!

Filed Under: Borrower Tips, Popular, Realtor Tips

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Comments

By Hal Jones on January 11th, 2009 at 1:31 pm

I am a real estate investor in Atlanta. Have bought 45 properties in 6 years. Most sold but some kept as rentals. Have had up to 14 rental properties, but now have only about 6. Would like to build rentals again, but the Fannie Mae limit of 4 is interfering. Any options available for overcoming the ownership limits in the Atlanta market? I heard they don’t count properties owned in corporations, even if you are sole owner.

Hal

By Mike Miller on January 12th, 2009 at 9:50 pm

Hal, you will be limited if you seek out loans that are originated by bankers who sell only into the secondary market. Find a small regional bank with whom you can have a real relationship. They should be happy to work with you especially if you can bring your business banking to them as part of the package. Private lenders are also a good resource and could be worth the increased cost (just consider the higher cost a “cost of doing business”), and look at the big picture. Lastly, ask a small bank to wrap multiple properties with one commercial loan. Find the properties with the least risk for the bank. Doing so will remove those loans from your personal credit profile and will allow the FNMA lenders to make several more loans to you. Good luck!