Does anyone know whats the deal with May and Mac
not letting investors have 10 open loans now and
I hear it is only 4 now?
Any Feedback?
If so what options are available to the buy and hold investor
like me?
Wallace,
If that’s true, you will have to either buy with all cash, buy with seller carrying the loan (I’ve got a couple of those–low interest and almost no closing costs, they are great), maybe buy subject 2 an existing loan with seller carrying a second mortgage.
You also need to cultivate a relationship with your small local bank. Borrow some money and pay it back. Do that a couple of times. Talk to the banker about your chances for getting a loan with them. This will be their own portfolio money and not sold on the market. In my small local bank I have borrowed with 15% down. Recently I bought a duplex with NO DOWNPAYMENT because the bank was willing to put a blanket loan on the duplex and another property that had equity. I had to pay for 2 appraisals. There was enough equity to set up a line of credit with that same bank for the next rehab or purchase.
I am bummed too, that there are no more Countrywide non-owner occupied loans with 10% cash down. That was sweet while it lasted.
Furnishedowner
Find a bank that doesn’t sell its loans. I prefer ones where a person makes a decision based on you instead of plugging your information into some formula.
Subject to
Seller Financing
Those are probably your two best bets for not having 4+ loans showing on your credit. This is the concept of Other People’s… Loans. Make sure you understand the mechanics and local/State laws of those strategies. But, effectively, you could have 1000 mortgages: 4 of those are mortgages in your name, the other 996 are “mortgages” that you pay Subject To or have the owner finance to you. When picking up your buy-and-hold properties this way, make sure that there is a clause in the contract stating that it is Ok for you sub-let. (DISCLAIMER: I’m not giving legal nor contract counsel. Follow up with your favorite attorney to verify everything).
I, myself, haven’t studied this strategy out well enough to implement it, yet. But it is my next real-estate strategy of choice to become versed in.
The idea of having a local/community bank, is a really good one. I hadn’t thought of that, but now the gears are starting to chug inside my head about paying more attention when driving down my local main street in town.
Dean
Wow, thanks for the great suggestion
from the trenches.
Does anyone know if the 4 loan rule is
a fact now or just a rumor I read.
As far as I know it is still 10 open
loans under your own name?
freddie 4
Fannie 10
Fannie mae and freddy mac??? Who needs them??
Has it occured to anyone to make some MONEY off Frannie and Freddie??? Anyone noticed the price moves in those stocks last week???
I’ve seen this movie before…Like in March of this year…both stocks get crushed by panic on Wall St. only to come roaring back within a week.
2 weeks ago I bought $30,000 worth or Freddie options by way of the January 09 $15 calls. They were priced at .30.
Last week…Sold them at .60…For a 1 week profit of $30,000!!
Not bad for 2 clicks on my computers enter button.
Yea, nobody makes REAL money in the stock market :banghead
Here’s a tip boys…
If I were you guy’s I’d be watching this hurricane in the gulf VERY CLOSELY!!
WHY???
In all likelyhood there will be some price OVER REACTIONS in the oil markets on MONDAY. Do you think it just might be possible to take the OTHER side of that PANIC and make yourself a PILE of money over the next month???
Jake, this is great if you know how to do this.
This is like me telling a newbie on here to go buy a 40 unit apartment building and make $10K a month on cash flow. Great if you know the steps to do it.
Tell me how to make $30K in a week and I am there, I have about $40K cash on hand in my pocket right now is all.
Jake what to share with me how to do this?
wallace
buy DIG
Jake
I’m still surprised at your post. I did exactly that before reading this post. send me any thoughts you have on stocks and ill do the same.
One of my mortgage brokers will finance my houses into my LLC (with no seasoning) with a limit of $1million. That frees me up to buy more. The down side is it is a commercial loan meaning 20% down. He will take 20% equity, but if I sell one of the houses in the package they resize the loan. The way they resize the loan is that if I sell a house that is financed for $70k and I sell it for $100k they resize the loan for the $100k. That means I don’t get the cash out I just get a smaller loan and more cash flow. We are working on how to fix that.
My original plan was to have 7 houses (not the same 7 but keep the number at 7). I guess I will make that 4. But if I want to increase my houses my fall back position is that I buy 4 houses and my wife buys 4 houses so I get 8 houses.
Fannie allows 10. So you can have 10 and your wife can have 10. Who do you have your commercial mortgage through? Is it a local bank or a nationwide commercial lender?
Blue,
Thank you for the referral.
All it means is that you get your additional loans from a lender who doesn’t sell to Freddie or Fannie.
Some local banks carry their loans in-house. A lot of credit unions carry their loans in-house. A few of the big boy banks carry not only their own loans in-house, but buy up loans from other banks.
None of the above are going to care what F or F require before they will purchase a loan.
Right now it is hard to get a 10% or less down loan, even with a 736 FICO Score I am finding.
I used to get stated ones easy but not now :banghead
Agree. We just got 15% down thru a local bank. I have a 750 FICO.