One of my real estate investor clients and I were on the phone this morning and she expressed to me concern with all the mortgage woes going on. We are passively looking for another property for her and she was worried about her ability to secure a mortgage on another property.
Although I didn’t outright say “Don’t worry, be happy” it was the theme of my response.
I took the necessary time to explain what I believe got us into this mess and that I believed it would probably go on a while longer. But that, in her case and in the case of many/most of my clients, it would have no bearing.
Why? Because most of my clients only own 2-4 rental properties. Most of my clients have household incomes well into the six figures. Most of my clients have credit scores that will make your nose bleed. And most of my clients have healthy and available liquid assets.
Not to say I don’t work with anyone. But I have to work with those that can qualify to own investment property, right?
No matter how tight credit gets, in my opinion, if you are able to put down 10% and stay under the “10” limit and find a property that works under your criteria then you will be able to acquire that property. At least the clients that I am speaking of.
Now, if you have four loans out and they are all 95% LTV or more, then you are probably going to have problems. You need to spend the next year or two getting those ratios more in line. Otherwise, don’t worry, be happy.