There is no doubt that the mortgage market crisis is affecting most of the interest rates we're seeing in California. Since California is a high cost area of the country and our property values are higher, borrowers here often need loans larger that those currently offered by government programs. These larger loans are called "jumbo" loans, and this portion of the market has been especially hard hit in the current lending crunch.
The biggest changes for investment property owners include the amount of equity lenders are requiring, the need for full documentation to gain loan approval, and changing appraisal requirements. Fannie Mae, Freddie Mac, and FHA are not primarily focused on aiding investors, so pricing can get steep for investment real estate loans.FHA does not allow them at all. Portfolio lenders remain one of the better sources for investment property mortgages.
If you own investment properties and need financing, you could face some steep rates if you attempt to do this without the help of an expert strategist who also has access to portfolio lenders. At Avatara we are currently doing investment property loans at rates in the low 6% range through our successful use of strategy. If you want to fully explore your options and gain from the expert analysis of industry insiders, please contact us for a free consultation.
Avatara Finance Group is a dvision of
First
Priority Financial, Inc. Avatara is
a full service brokerage offering both
residential and commercial real estate
financing. If you are interested in
building a real estate portfolio and
increasing your passive income please
consider allowing us to help you with
both your investment stratgegy and financing.
You always gain by exploring all your
options.
You've probably seen seminars offered that teach real estate investment strategy advertised. They typically advertise that you can make millions with no money to start by purchasing properties and flipping them for profit. Our finance cousultants are expert strategists in addition to being veteran loan agents so we understand that every real estate purchase is an investment and should be treated as such.
You will benefit from using our services by gaining much of the same information you can get from a real estate seminars for free... without the hassles, hype, and costs for CD's, book sets and seminars that teach the same principles. Contact us for straight answers and proven investment techiniques.
Flipping properties can be a risky proposition, even for experienced investors. The same is true for purchasing foreclosure homes since they can have hidden conditions requiring expensive repairs. If you are considering buying a property to flip, be sure to have a plan in place that allows for extra time to sell the property... or plan to rent the rehabilitated property for several years before you sell. We can help you plan.
Current market conditions are ripe, however, for investors who are savvy and want to increase their rental property income. With lowered property prices, and foreclosures forcing people out of homes they've owned, this can be an excellent time to buy properties. As lender guidelines have tightened in recent months, this forces more people into the rental market, tightening rental inventories. We predict that rental prices will continue to rise into next year as a result.