All Forum Posts by: Robert Bowles

There is a lot of confusion with this. I am meeting with someone with OR Dep of Finance and Corp Securities next week and a RE attorney to make sure to get this right.

There are circumstances where someone can invest in notes without a license but they seem to be written so that you can finance a property you own or invest in a few (less than 3 (a question I need answered)) with your own funds. If you are in the business of making or investing in RE notes you would need a license...but when are you "in the business"? Below is part of the list who does not need a license.

• A person who makes a loan secured by an interest in real estate with the person’s own moneys, for the person’s own investment and who is not engaged in the business of making loans secured by an interest in real estate.

I hope to have a definitive answer soon and well shoot what I find your way.

Fannie Mae and Freddie both allow you to refi for your cash purchase price and accusation funds before 6 months....this is no financing on the subject property.

You can do a no cash out refi (pay off existing loans) after 4 months using a new appraisal.

You can do a cash out refi after 6 months, going off the new appraisal.

Talk to local brokers who also invest and they can find lenders that will fund these loans.

Not too many evil tricks. Hard part is finding the property...as always. The interest rates a little higher, but the lack of MI makes that a non issue, not to mention only 10% down.

I find that the best deals disappear really quickly, but good deals do exist.

you are correct you can purchase the home with 10% down for an investment property.

There are very few downsides...if you find the right property. I just helped fund two rentals through this program and the difference between HomePath and conventional was huge.

I would love to attend, but will be on vacation for the next 3 weeks.

Please keep me in the loop for next time.

Robert Bowles

503.490.5153

As @Jon Holdman said your payment is calculated from the loan amount, interest rate and term.

Your interest rate is determined by the factors of the loan (LTV, credit score, non owner occ vs owner occ, FHA or conventional or VA, ect).

Your income will be used to see if you qualify once you have a loan scenario. You should find a broker that you can talk with and they can walk you through the different options you might have and show you how your rate will be found. Ask around and you will find someone who will teach you everything you need to know.

Good Luck.

I am not sure about the Seattle market, but I have met a few people that rent units in Portland through Airbnb and VRBO and do really well. They all seem to be bringing in more than the unit would rent for if monthly. Two of the units are close to down town (1 a duplex the other 3 plex) and the others are ADU's around the city.

My wife stayed in an Airbnb 4 plex in FL to take some classes where the owner rented all the units through Airbnb. After talking to him it planted the seed for us to buy a vacation rental on Mt Hood. Although a totally different thing we are hitting it out of the park (We have paid the mortgage until 2015 already).

You might look at Airbnb to see if they have any meet ups. There is a group in Portland that meets occasionally and we have spoken to a lot of people here, if a group exists it might help you do the math.

Good Luck.

Call the local zoning dept. In Portland they can usually answer most questions over the phone. You might have to stop in, but should not take long at all.

Call the city ,541.450.6000, they should send you in the right direction or tell you who to contact to make sure.

you can have unlimited owner occupied loans (ok one sat a time), but you will be limited for most loans if you have 10 financed properties. You might have to go to a broker or credit union, but there are loans up to 10 properties.

Here is Fannie's guideline:

If the mortgage being delivered to Fannie Mae is secured by the borrower’s principal residence, there are no limitations on the number of properties that the borrower can currently be financing. If the mortgage is secured by a second home or an investment property, the borrower may own or be obligated on up to ten financed properties (including his or her principal residence).

The financed property limit applies to the borrower's ownership of one- to four-unit financed properties or mortgage obligations on such properties and is cumulative for all borrowers. These limitations apply to the total number of properties financed, not to the number of mortgages on the property or the number of mortgages sold to Fannie Mae. Unless otherwise stated, these requirements apply to all mortgage loans whether underwritten manually or through DU.

So to fix this you have to refi in your wife's name ONLY on some of the loans and your name ONLY for the others. I currently have 9 loans and my wife 8 (and catching up this week i hope).

There are anther lenders that will go above 10 properties, but they are going to hold the loans. One lender i use allowed it in one of their Jumbo programs, but have no issues as long as the loan is over $200,000. Strange but they do it and they are still in the 5's for NOO's

Good luck

It should not be a problem. Lenders typically want to see two years for employment, but I have never ran into them questioning a job change.

What might be an issue is going from W2 income to 1099. In that case lenders want to see two years income. If you went from 1099 to W2 you are fine with one month verifiable income.

Hope this helps. Talk to a local broker and they can help you.