With the tightening of regulations, many mortgage-lending institutions no longer lend on rental properties or if they do a cap is in place for the maximum number of properties a client is able to finance. With this being the case, many property investors are left scrambling to finance a property even though on paper it is a very strong investment purchase. There are also many alternative mortgage-financing options available to suit these investment clients’ needs.
A real estate investor wanted to purchase another property to add to his real estate portfolio.
His own bank: turned him down for a mortgage because they felt that, by adding one more property to his existing investment portfolio posed too much risk to the bank!
He was got him approved for alternative financing through a sub–prime lender.