Portfolio Lending to Acquire Unlimited Number of Mortgages for Real Estate Investors

The previous rules for unlimited number of mortgages for real estate investors have not changed. Now, some may read this statement and assume it is some sort of typo. After all, the new Fannie Mae and Freddy Mac rules have dramatically limited the number of loans one can acquire to purchase property. This is true. However, there are many alternatives to dealing with Fannie Mae and Freddy Mac. Portfolio lenders remain an excellent source of acquiring unlimited number of mortgages for real estate investors. This is because portfolio lenders are not held to the same rules Fannie Mae and Freddie Mac are.

Real estate investing is a matter of simple math. An investor purchases a property at a certain price and, in time, they sell the property for more than what they paid for it. Of course, there are no guarantees with this method. It is not impossible for the equity of a home to drop. If the value of the residential or commercial property falls below the purchase price of the home, then a loss is incurred.

However, there are ways of diffusing such a loss. One such method is wholesaling. Wholesaling is a very simple real estate investing strategy. On a baseline level, wholesaling involves purchasing a huge number of properties and then selling them at a profit. Because the volume of properties being sold, even a small equity increase could yield huge returns. That is, an average of a 4% increase in equity over 20 properties comes out to a significant profit.

Keep in mind, the aforementioned 4% averages combines the gains and the losses of the properties across the board. This is a critical point because it shows the importance of being provided with an unlimited number of mortgages for real estate investors. If an investor is capped to four loans, the ability to offset losses will be dramatically limited. This can have a chilling effect on the economy.

Namely, by providing an unlimited number of mortgages for real estate investors, the investors can be more confident about making their investments. However, if their ability to diffuse risk by acquiring an unlimited number of mortgages for real estate investors, they may opt to this type of investment and go elsewhere.

There will be those that are opposed to allowing an unlimited number of mortgages for real estate investors. However, these individuals do not realize that the economy is not a self-contained entity. That is, if those looking to procure unlimited number of mortgages for real estate investors are denied, it will hurt the economy overall. The economy works best when people are investing in various sectors. Limiting investment or creating impediments to investing simply is not a good idea.

Again, those looking to acquire an unlimited number of mortgages for real estate investors have a venue they can approach. Portfolio lenders are both allowed to issue these loans and commonly do issue an unlimited number of mortgages for real estate investors. If such volumes of mortgages are what you are looking to acquire, a portfolio lender would be the lender to approach. Really, there are few other options.

by Susan Lassiter-Lyons - June 7, 2009

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Source: http://www.portfolioloanblueprint.com