The recent changes in mortgage rules are certainly helping investors get back in to the market. Fannie Mae had previously limited investors by allowing them to finance only up to four properties, regardless of whether they had money for a down payment, and perfect credit. Ever since March, the limit was increased from 4 to 10.An article in FloridaToday describes how this has changed the real estate climate. Scott Bray, vice president of residential lending for AmeriBest Mortgage in Satellite Beach, said in the article that before the limit was raised, he would take one or two calls a week from investors who wanted to refinance a property or buy a new rental house. Ever since the limit had been imposed, if an investor owned more than four properties, they couldn't add a new mortgage or refinance a current one.Dick and Ginny Pugh had begun their real estate investing career 8 years ago and Dick had worked 33 years as an airline pilot. The couple never had a problem getting a loan until December 2008 when they found a home that they liked but could not get financing. Luckily, they were able to take out a HELOC and buy the rental with cash.You may have noticed a large number of cash deals for homes under $100,000 between September and February – these were probably investors who weren't able to finance the properties, but couldn’t afford to pass up the great deals. Sales for those months probably would have been higher if the four-property limit hadn't been in effect – and not allowing investors to chomp through the backlog of foreclosures has been hurting our markets.
The current markets are an investors’ playground, and serving to the needs of this segment is the key to improving the housing market. What kind of marketing tools are you using to help grow your business with investors?
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