INVESTOR MORTGAGES, WE LOVE THEM BUT MANY DON'T ...

?Investor Mortgages, We Love Them but Many Don?t?

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At least a dozen times this year, local banks and credit unions have referred clients that were looking for mortgages on their investment properties. In most cases, we got these folks the mortgages for their properties. In one case, I refinanced 4 single family homes. So why do they send these clients away?

Many investors have one or more 1-4 family homes that they purchased a few years ago. Many have 7-12% interest rates and? lots of equity. The big problem is tax returns that show losses on these properties. What further complicated a refinance possibility is many banks and credit unions require lower debt ratios than we do, even though the clients? never missed a mortgage payment at the rates they are paying.

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?Cashing in on Investor Loans?

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By: Doug Smith

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The demand for investment property is at an all-time high. In some markets around the country, one in three homes sold today is sold as a non-owner-occupied investment or rental property. The reasons are clear:

1. Housing prices are down and mortgage interest rates are at record lows, allowing real estate investors to buy property at big bargains with low monthly payments.

2. Rental costs are up. With the demand for rental property soaring across the U.S., average monthly rents in urban areas and large metropolitan cities now exceed the average payment for a monthly mortgage.

3. Homeownership attitudes have changed. Current research reveals that many Americans would rather rent a home in today?s economy than deal with the burdens and risks of owning one.

With potentially thousands of investor loan opportunities out there in your local market, now is the time to maximize this channel of business. As the housing industry continues to recover, the demand won?t last forever. Here are seven suggestions for landing more investor mortgage loans in the upcoming months:

? Direct mail?Work up a simple, one-page letter promoting the benefits of investing in real estate. Explain how others are making handsome returns owning and leasing rental property. Send out 500 copies of that letter to homeowners in your area. That letter may cost you $300 in postage and paper, but will pay for itself with just one deal.

? Seminars?Consider delivering an informative 45-minute seminar entitled ?How to Purchase and Finance Investment and Rental Property.? Offer the seminar at a local community college, at churches, associations, organizations and/or area companies and large employers. A seminar is an inexpensive way to position yourself as the subject-matter expert and allows you to get in front of multiple prospects all at once.

? Presentations to real estate agents?Many agents supplement their incomes by purchasing and managing rental property around town. Take your seminar out to local real estate offices, your real estate association, Women?s Counsel of Realtors or a Realtor investment club. This can be a huge win-win not just for finding investment loans, but also for meeting and starting relationships with some new real estate agents.

? Target financial planners and financial advisors?It?s no secret that people?s investments in CDs, mutual funds and stocks aren?t paying very good returns these days. Financial advisor-types are always looking for good investment ideas to suggest to their clients. Purchasing investment/rental property in this market is a good idea. Get on the phone and schedule some breakfast meetings and luncheon appointments with these referral sources.

? Telemarket your database?If you have a database of past clients, consider making five to 10 outbound phone calls on a weekly basis to these contacts. Let them know about the tremendous opportunities out there today for purchasing real estate as an investment and renting out the property. Follow up with helpful information and ROI examples in the mail.

? Approach other lenders?You may have the interest and the loan products to attract investors, but many of your competitors may not. Many local banks, credit unions and even some national mortgage lenders are still gun-shy about doing investor loans (or their qualifying requirements are ridiculous). They may have good leads and referrals to give to you on loans they can?t or don?t want to do.

? Talk to your family, friends and neighbors?It is statistically likely that some people close to you are considering investing in rental property right now. Get the word out that today is the time to act, and that you have the information and expertise to help them make a smart and well-informed decision.

While some investor loans will naturally just find you through your normal business channels, the majority of the loans will go to the mortgage loan originators who are proactively out looking for them. As with all new opportunities, those who work fast and hard to capitalize on them will reap the biggest rewards.

image:jscreationzs/freedigitalphotos.net

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Source: http://righttracmortgage.wordpress.com/2012/08/30/investor-mortgages-we-love-them-but-many-dont/

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