Portfolio Lenders

Since my last post, and yes I know it's been a while, the housing bubble has burst and there are a lot of great deals in the market. You have to be very patient as the banks are taking months and months to respond to offers as they are inundated with foreclosures and short sales.

The huge problem now is getting financing as Fannie Mae has lowered their allowed limit of financed investment properties from 10 to only 4. Most banks follow these standards but a few banks called "Portfolio Lenders" don't. Here is the list of bank that I have contacted that would not take my application because I have four or more rental properties:

• Wells Fargo
  
• US Bank
• America First Credit Union
• Washington Mutual
• Zions Bank
  

These banks are able to lend past the Fannie Mae limit of 4:

• Washington Federal Savings (currently requires 25% down)
  
• Countrywide Financial (currently requires 40% down for non Fannie Mae properties)

So now is the time to get private financing from friends, family, business associates, or via business lines of credit. I am always looking for additional sources of funds to invest and can pay 1-2% per month. Not only a great return on your investment, the money is also backed by an asset that I have purchase at way below market value.