Agent Profile
My job is service...service to you and your real estate transactions! How can you benefit from my 25 years of experience and expertise? What can I offer to make the process more productive?
* Current information on available housing...comparative and competitive market pricing and analysis
* Daily involvement in the local real estate marketplace.
* Thorough, comprehensive knowledge reflecting years of helping others complete their real estate business.
* Extensive network of professional resources to make the process as smooth as possible.
My commitment is to you! Being available to you...returning your calls...answering your questions...addressing your concerns...respecting your money...matching your timeline...meeting your expectations...helping accomplish your real estate goals!!
JANEESE JACKSON: 503-709-0802 or jj@janeesejackson.com
“Sunny Day Real Estate”-Rain Song
By now, you’ve figure out that I’m “hot for real estate”!!! And, I’m particularly excited about investment real estate! I believe it makes an excellent addition and rounds out a financial portfolio that could include stocks, bonds, mutual funds, savings accounts, gold, your mattress and/or sock drawer!! So, how do you prepare to become a successful investor?
Keep in mind who might NOT be the best candidate. People who are not engaged in the process, fad followers who expect “easy money” or people who are “too busy”. It takes a bit of time and energy to research the properties, run the numbers and make a qualified decision!! Sometimes you just have to “make the time”. The pay-offs or ROI (return on investment) can be very good!
It can be more difficult (but, not impossible, as I have proven) if your income is variable or newer, your debt load is high or there’s a lack of cash capacity and reserves! For traditional Fannie Mae and Freddie Mac financing, most lenders require a 20% down-payment and you get a better interest rate with 25% down. If you own more than 4 properties, you could have to put even more money down. No gift funds can be used. The seller can pay up to 2% towards the buyer’s closing costs. The borrower can have no more than 4 mortgages total (if you own 5-10 properties, there are additional rules). You must have 6 months PITI (principal, interest, taxes and insurance) for the subject property PLUS 2 months PITI reserves on all other properties. If the buyer has no history of property management covering two years, the buyer must qualify for the full PITI regardless of expected rental income!! There is no loan program for investment property purchases under FHA (Federal Housing Administration) and VA (Veteran’s Administration) financing (unless you live in one side of the duplex). Lenders allow 75% of market rent to offset payments. Lenders will look at 2 year’s Schedule E Tax returns and can use real rental income/loss.
If this is your first rental purchase, you must document all cash for the down payment and significant reserves. You must qualify with no rental income to compensate. And, the lender will require “rent-loss” insurance!
When you already have 4 mortgages, there is a Fannie Mae program for financing up to 10 mortgages but few lenders participate and the terms can vary! Lenders typically have their own additional “overlays” or restrictions. Portfolio financing (where the bank holds the loan instead of selling it on the secondary market, thus don’t HAVE to follow Freddie Mac and/or Fannie Mae guidelines) does exist with at least 25% down. You could also refinance your primary residence and pull cash out or refinance current rentals and consolidate debt into fewer mortgages.
There can be other challenges. A duplex, triplex and/or four-plex may lack good comparable sales data which will impact the appraised value. Weekly rentals in resort areas are considered on a case by case basis and on a lender by lender basis. Condo purchases will require extra verification.
It may sound daunting and I know from experience, as I have personally experienced nearly all of this!! I have owned a vacation rental, I presently own a condo rental, I have experienced a low appraisal on one of my duplex purchases, I have been turned down by lenders on duplex acquisitions because of my variable income, I own more than 4 properties. But, if it were easy…everyone would do it!!! No pain, no gain!!! When the going gets tough, the tough get going!!! And, every other trite inspirational saying I can include. My point being, you’ll never know till you try. If you are interested, call for a lender recommendation and sit down and go over your assets with a Mortgage Broker and make a plan. Meet with an experienced Real Estate Broker and plot out an approach that works for you. Then you can start searching for properties that meet your pre-approved loan amount and your particular strategy. Read HERE some things I’ve learned while managing my own investment properties!
About the Author | Janeese Jackson
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