Today’s REI Classroom Lesson

Today, Stephen Bighaus talks to us about what to do after you’ve reached your maximum amount of investment properties with Fannie Mae or Freddie Mac.

REI Classroom Summary

Learn more about the alternatives to securing funding for your investments, and how some investors can utilize commercial lenders when they have lots of volume.

Steve Bighaus
VP of Mortgage Lending
steve.bighaus@rate.com
www.rate.com/stevebighaus
o: (206) 823-3213 – f: (872) 808-1296
1100 Dexter Avenue N Suite 100, Seattle, WA 98109
NMLS ID: 112825

Listen to this REI Classroom Lesson

Real Estate Investing Classroom Show Transcripts:

Announcer: Welcome back to the FlipNerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.

Steve: This is Steve Bighaus, Security National Mortgage and host of the REI Classroom this morning.

One of the common questions I get with investors is what do I do once I get to my ten finance properties with Fannie Mae or maybe my six with Freddie Mac? Where do I go to from here?

Announcer: This REI Classroom real estate lesson is sponsored by VirtualStaffNow.com.

Steve: Over the last few years, there have been some companies that are popping up and offer the portfolio lending. But the feedback that I’m hearing from a lot of my customers that tried it is one, it is expensive, one, that they never get closed, I mean, it’s just really, really tough right now. I think the portfolio lenders right now are still trying to get their feet planted a little bit more solid because they’re just not sure where it’s going to go.

One of the things that I’ve done in that is I’ve shied away from the individual portfolio lending until the market problem matures a little bit more and we see some of the people that can really step up to the plate and offer some pretty good financing. Some of the issues that I see in the portfolio lending are requirements on a property as far as square footage, bedroom and bathroom counts, as far as neighborhoods. The get very selective about the neighborhoods, and you’ve just got to be really, really careful in that area.

Like I said earlier, one of the things that I try to do is trying to shy away from that as far as the individual because, like I said, they can be pretty expensive. One of the things that I’ve done in that is I work a little bit more with a couple of commercial lenders. They can offer the bundling in that, which I think is a really viable product. Rates are probably a little bit better. The fees are definitely a lot better. It’s just another vehicle for people to increase their portfolio size.

What I tell my customers, I say, “Once you get to that limit of 10 financed properties, you’re really no longer a residential customer. You’re really a commercial customer.” That’s the mindset that you really have to think. So if you want to grow, the commercial side is a good avenue. I’ve got clients right now that own up to 40-plus properties.

I don’t have much more to say on the subject, and that I just think that there are opportunities once you get past your 10. I’m more than happy to help you. Thank you.

Announcer: VirtualStaffNow.com is the leading virtual assistant provider for real estate investors. As busy real estate investors there’s nothing more valuable than our time, and VirtualStaffNow.com not only helps you find the right real estate virtual system for your business, they train them on an ongoing basis, manage them daily, and make sure they’re staying productive and effective. And in the event they’re not the right fit or need to be replaced, they handle that for you, too. Whether you need 1 or 100 virtual assistants for your team, start the process right now at VirtualStaffNow.com.

Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.

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Stephen Bighaus
Steve Bighaus has over 28 years experience in the mortgage industry. He maintains a focus on servicing the real-estate investor by offering aggressive financing options and resources for buyers interested in purchasing or refinancing their investment property. By concentrating on investment properties and the financing that comes with them, Steve is recognized nationally as an industry expert. The knowledge that he has enables him to find financing for people even when they have had difficulty elsewhere.
Stephen Bighaus

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