One huge challenge investors with over four properties are finding these days is financing for additional investment properties up to a total of ten. Many lenders perceive an investor with more than four financed properties as an increased risk. This, despite Fannie Mae announcing last spring that it would allow their mortgages to go up to ten financed properties from four.
Good news. Sierra Pacific Mortgage, our parent company at Golden Bear Mortgage, has affiliates that will allow the practice of lending to investors with more than four properties. We can even combine an investor purchase with a flip (a home that has been purchased and is being sold within a 90 day period).
Investor financing is alive and well. Many investors were not able to generate positive cash flow on their investments with a 20% down payment as recent as 2008, relying on equity appreciation to capitalize on their properties. Well…we all know what happened to the equity. The current market realities are actually better for the investor, with plenty of highly qualified tenants for residential homes.
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