Investment Mortgage Guy

One of the biggest challenges with investing in real estate in 2009 is financing. Financing has become much more difficult and for many investors, there are no viable options. The credit market is very tight. Fannie Mae and Freddie Mac are the only national sources left for financing investment properties. Even so, if you have over 4 financed properties, you won’t qualify with them. In October, they modified their guidelines down from a total of 10 financed properties. So what is the real estate investor to do?

Local banks have become a viable option for investors with more than 4 financed properties. A local bank is going to look even harder than Fannie Mae or Freddie Mac at your credit profile and liquidity, but if you fit the box, they will lend you the money. The terms with local banks are very simillar from bank to bank. Rates are typically 7% with a 20-year amortization and a 5-year balloon. The down payment right now is the same as Fannie Mae and Freddie Mac at 25%. Many local banks got hurt with some bad properties druing the last few years and aren’t real keen on working with people who want to invest in real estate. This is where I can help. I have developed key relationships with Banks from around the Twin Cities who are still interested and excited about lending to the real estate investor. For a broker fee, I will match you up with the local bank that I think has the best option for you to accomplish your financing needs.

You can reach me at 952-808-2820.

Rob Bonahoom

Mortgage Coach