Investor Mortgages range the broadest of the lending species, including Agency, non-agency, and Private bridge lending on the Single Family Residence or 1-4 family level. 5+ units fall under commercial lending, and no longer may be considered for agency products until the loan size exceeds 1 million, then may be considered for agency commercial lending. Over 5 units and under 1 million will undoubtedly be non-agency or private bridge mortgage lending. Non-Agency and Private Bridge lending are weighed heavily on Debt Service Coverage Ratios (DSCRs) and Collateral value adds for distress properties.
COVID has dramatically negatively affected the non-agency investment lending industry. A few permanent financing lenders remain, much of which due to discussion of moratoriums on dispossessory actions and forbearance requests on current lending relationships.
As Real Estate Investors, we know we must “adapt” to changing environments. We, the progressive Investors, increase our knowledge and improve our techniques to increase our passive income and drive to increase our net worth, recognizing challenges and hedging against risk. We can’t be “bull” when its time to position ourselves bear, and hopefully be wise enough to have the foresight to know what to do, if not then to collaborate and improvise, so to prevail.
For example, if someone only does “Fix & Flip” investing, and we come to a time where sales are “slow and low”, this investor will need to change his plan to adapt to the changing market. This investor would need to recognize opportunities in different areas, such as being a “buy & hold” investor with Section 8 tenants in this COVID era, noted with low-interest rates, and still high government section 8 rents.
There are too many possible scenarios to highlight on this page, please call our office for a consultation in your specific scenario.