We want you to meet Steve. Steve is an experienced real estate investor out of Bay Area in California. Steve did everything right; He bought twelve income properties during 2003 - 2005. He put 10% down on each property and didn't fall for the A.R.Ms, instead he financed the deals at a fixed interest rate. Steve diversified his investments by owning these income properties in six states. Smart move!
Not so fast! When Steve saw an amazing buying opportunity in Fall of 2008, he was declined for an investment property loan because he had more than "5" mortgages on his credit report.
Now meet Abbey. Abbey is a novice real estate investor who wants to buy properties to hold for long term. However, Abbey lacks the most important element to qualify for a traditional mortgage: the verified income. Abbey is a part time student and a full time home maker. Her husband's income is not enough to qualify them for an investment property loan.
Both Steve and Abbey have one thing in common: Both see a huge buying opportunity in today's market for the real estate investors. But neither one of them are viable candidates for an investment property loan even with above average FICO scores.
Recently, we asked one of our top loan brokers for some possible options. The answer wasn't surprising: there are none!
Not so fast! When Steve saw an amazing buying opportunity in Fall of 2008, he was declined for an investment property loan because he had more than "5" mortgages on his credit report.
Now meet Abbey. Abbey is a novice real estate investor who wants to buy properties to hold for long term. However, Abbey lacks the most important element to qualify for a traditional mortgage: the verified income. Abbey is a part time student and a full time home maker. Her husband's income is not enough to qualify them for an investment property loan.
Both Steve and Abbey have one thing in common: Both see a huge buying opportunity in today's market for the real estate investors. But neither one of them are viable candidates for an investment property loan even with above average FICO scores.
Recently, we asked one of our top loan brokers for some possible options. The answer wasn't surprising: there are none!
So what are 90% of aspiring real estate investors to do, who don't fit the criteria? The solution: Start thinking out of the box!
Interestingly, a huge industry is thriving in today's real estate market. This industry consists of creative real estate investors / sellers. The idea: Carry the note on the property and sell the note on a discount to thousands of note buyers. Note Buyers? What are they?
The note buying is an old idea that's making a come back during the "credit crunch". The void left by the banks, that are too busy rewarding stupidity of their executives, is rapidly being filled by this sophisticated industry.
Bottom line: Don't give up on your real estate investment goals simply because you are not a "viable" candidate for a conventional mortgage. Please contact us so that we can show you how to utilize the "un-conventional" Seller-carry mortgages to take advantage of this once in a lifetime investment timing.
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