As the financial markets melt down will there be anyone left to invest? Or better yet, are there any lenders available to finance investment properties?
I received this email today from a client and I feel that is important for a couple of reason, both which we will get to later.
I was wondering if you could find Jason and me a loan for a rental. We currently have 7 rental properties and have been told 4 is the new limit. Is there any way around this?
I do have at least two lenders that still allow borrowers to finance more than 4 properties. These particular banks do not have a limit to the number of properties owned individuals, just have to be able to qualify. Here is a brief overview of the guidelines:
- 75% Loan to value
- 6.75% 30 year fixed interest rate
- 1% prepayment charged if paid off in first three years (.5 fee to have n prepay)
- Full documentation of income
If you would like I can put together some numbers, please provide me with the details.
She followed up with:
This great news! I am cc:ing Jason to this so he can follow up with you. We hae been considering buying stuff at auction to use as rentals but had heard we would not be able to get loans. Thanks for your quick response.
I share this with you for a couple of reasons. There is a great deal of opportunity and optimism about the investment market place. While there are thousands of people in peril, there are still a large number of individuals that can take advantage of low low prices, selection of inventory,low interest rates and the number of quality renters.
Why is now the time to buy?
Here is a look at appreciation from The National Association of Realtors.
Real Estate markets across the nation are already going up. The west is the last region trending down, but it soon will turn as the foreclosures purge themselves from the market place. In Phoenix, Arizona you can buy some homes for less than what it cost to replace them. This indicates that the bottom is soon to come, just like other regions.
For those that can buy real estate please do not follow media headlines during a Presidential race. Follow the facts, numbers and statistics.