Portfolio Loans for Real Estate Investor Financing

Being turned down for real estate investor financing is becoming the norm these days – for some. There are others, however, that do not seem to have a problem acquiring the financing they need to purchase their investment property. This is because they understand the importance of looking towards portfolio lenders as a source of real estate investor financing.

Portfolio real estate investor financing is more important now than ever before. The reason for this is that banks are not making loans readily available to borrowers. There are a host of reasons for this and this most common centers on the limited availability of credit. Banks simple do not have the money to lend and when they do lend out money, they are very selective as to who they lend it to. This is not because they are being unfair to certain people. There have been far too many defaults in recent years. The banks obviously do not want to continue this trend.

However, portfolio real estate investor financing is generally free of these problems. This is because portfolio loans come from privately held funds. That is to say, the lending sources are not banks or traditional lending institutions. To a degree, portfolio real estate investor financing has not been hit as hard with defaults as other lending institutions. That is why portfolio lenders are still making loans available.

In a way, portfolio real estate investment financing exists outside the traditional norm of lending. For example, if the portfolio lender has had a “banner year” in terms of returns on his lending investments, then the whole subprime mortgage fiasco is irrelevant as far as his business concern. As long as he has made the right real estate investor financing loans and is currently in good enough shape to continue lending, he can still lend money to eligible borrowers. This opens a window of opportunity for those looking for real estate investor financing.

This could also be of special interest to those looking for unlimited mortgages. Portfolio lenders are free of the 4 property rule of Fanny Mae which is so disastrous. It kills the potential for financing for unlimited number of properties. Thankfully, procuring portfolio loans can completely avoid this problem.

Keep in mind, the market has its ebbs and flows. Prices that are down now have a potential to make a huge comeback in time. This is creating a tremendous opportunity for those looking to purchase property to sell at profitable prices. Unfortunately, many assume the credit market is thoroughly dried up and their options for real estate investor financing is limited. This really is not the case considering the availability of portfolio loans. As such, anyone looking for real estate investor financing would be well served seeking out a portfolio lender.

by Susan Lassiter-Lyons - July 6, 2009

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Source: http://www.portfolioloanblueprint.com