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Every week, our “property finders” search the Portland area for real estate bargains — real bargains with minimum discounts of 25% to 35% off current market prices. These wholesale real estate deals are only available to investors with the ability to pay cash and close quickly, usually within 7 to 14 days. When a new property becomes available, we email the details to everyone on our VIP Buyers List and someone usually grabs it within a few days. To buy real estate at huge discounts, sign up now using this link. And remember to respond quickly when you see a Portland investment property that interests you in one of our emails.
Many real estate investors have given up on buying investment property due to their inability to find financing. In some cases, this is due to tighter credit and income documentation rules (no more stated income loans). However, most investors have discovered that even well-qualified borrowers (great credit, cash reserves, proof of income, etc.) are unable to get mortgages to buy or refinance investment properties.
Most lenders have decided to stop writing loans for people who have more than four mortgages — even though Fannie Mae rules allow investors to have up to 10 mortgages. (See our post titled, Fannie Mae Does Investor Loans.) So Fannie would buy these loans from local lenders without recourse, but the lenders don’t care. [click to continue…]
If you’re not an experienced, long-time real estate investor, here are some basic investing tips that can help you get started buying Portland investment property without making any fatal financial mistakes.
1. Don’t be paralyzed into complete inaction by the fear of making mistakes. This is known as “analysis paralysis” and it prevents most people from achieving financial independence because they never get started. No matter how many deals you have done, you are going to make mistakes because you’re human. But if you are careful, you should be able to limit your mistakes to ones that merely reduce your profits, rather than causing real financial losses. [click to continue…]
Effective February 1, 2010 – FHA will waive their 90 day seasoning rule for a one-year trial period. This is great news for sellers and buyers of investment property in Portland! In the past, it was difficult to resell properties because the end buyer could not use FHA financing unless the seller held title for 90 days. This meant that the seller (wholesaler or rehabber) had to sit on the property for 90 days or try to find a buyer who did not need FHA financing, which ruled out about one-half of all potential buyers. There are still some restrictions, but here are the basics (be sure to read the new rules for yourself): [click to continue…]
When the government’s Home Affordable Modification Program was announced back in March, the goal was to save four million homeowners from foreclosure by getting their mortgage payments permanently reduced. The Treasury Department recently reported that 728,000 trial modifications are underway, but only 31,382 homeowners have received permanent loan modifications. [click to continue…]
(Be sure to read the Fannie Mae Does Investor Loans post before reading this.) To see how many lenders were willing to make loans on investment property, we called every mortgage lender in a town of 50,000 people. Our informal survey included the four biggest banks in the US. We told them we were full-time real estate investors with ten financed properties (the limit set by Fannie Mae), excellent credit, low debt ratio, more reserves than Fannie required, and we wanted to refinance several loans on rental properties. [click to continue…]
Ever since the bank/mortgage implosion last year, it has become very difficult for investors to get financing. At first, Fannie Mae set a limit of four mortgages, which meant that investors who had a mortgage on their personal residence plus three more mortgages on investment properties could not get any more loans because Fannie Mae would not buy them from the originating lender. And 99% of lenders would not even think about underwriting new loans if they couldn’t sell them. [click to continue…]
Thanks to lower home prices — caused by a flood of foreclosures — and the $8,000 tax credit, home sales (and prices) are up slightly in most local real estate markets. However, the increase in prices is only over the last six months. Year-over-year prices are still down 11% for most major markets, including Portland, but the lower prices have caused home sales to increase dramatically at the lower end. Many first-time home buyers are now able to buy, and bargain hunters are picking up more investment property in Portland. [click to continue…]