By know you have all heard about the meltdown in subprime mortgages. Foreclosures are on the rise and home prices have dropped in many areas across the country. The number of real estate investors in the market have fallen considerably as many of them have lost their shirt buying homes at the top of the market hoping the prices would keep going up.

Now there is a new sheriff in town, so to speak. All of the novice investors are gone leaving room for the seasoned vets to play the market again. Being a bit contrarian in nature, I see lots of buying opportunities out there IF you know what you are doing. Many markets are also seeing increased rents as would be buyers put off that home purchase and people that have lost their homes are subsequently renting.

This makes for an interesting buy and hold opportunity for the right properties. Part of determining the right opportunity is the type of financing you have in place. There are still a lot of options for real estate investor loans despite the fact that mortgage companies have tightened up their credit policy.

Real estate investor financing options include:

  • 95-100% Financing – This option has almost completely disappeared due to the amount of foreclosures that resulted from it but it is still available in limited situations.
  • Investor Pay Option Arms – Here is another loan program that has gone into hiding that allowed investors to double or triple their cash flows.
  • Investor Rehab Loans (Hard Money Loans) – This little darling of a program is meant for all you that enjoy flipping houses. The underwriting guidelines are more flexible and fundings are much quicker. Hey you could eventually get your own TV show if you do enough of them! LOL

This is not a complete list by any stretch of the imagination but I also didn’t see the point of listing 101 variations of investment property loans when they fall under a few general categories. Next time I’ll dig a little deeper into specific guidelines such as how to get a loan with no title seasoning, etc. I will also go over some examples of how the financing can, and should, play in the decision of whether you should buy a property or not. Stay tuned.

Later

Tags: Investment Property Financing, Real Estate Investor Loans, Hard Money Loans, Investor Rehab Loans

Filed under: Investment Property Financing

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