Small Property Investor Points in Stimulus Bill & Treasury Plans ---

Fannie Mae has agreed to raise the limit of 4 loans for investors to 10 loans.  This, coupled with the drop in residential real estate prices, makes this market prime for the small investor.  The following has changed the number of loans allowable on residential properties from a limit of 4 loans to 10 loans for investment properties under 5 units. *  DBC has included the residential mortgage information as it may affect your current and future investment strategies.

1. Loan limits will be raised to $727,000 in high cost areas (home)

2. Tax credit will be raised to $8,000 with NO payback [a true credit] – home)

3. Interest rates have come down 125-150 basis points  (home)

4. The bill has over $50 billion in it for foreclosure mitigation  (home)

5. Geitner’s treasury plan signals that the second half of the ‡TARP funds will be used to:

   1. Mitigate home foreclosures through a government guarantee

   2. Drive down interest rates by buying another $200-300 billion of mortgage paper thereby freeing up money for new loans.

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Advantage of the Stimulus Package to a “Small Property Investor”

 The Stimulus package and the TARP funds should, at a minimum, halt the decline of the residential real estate market.  Over time the value of those properties should increase as the economy recovers and the demand of homes increase therefore it is time to invest in this market.

 Even though the prices for homes have declined rapidly rental rates have remained constant or increased which is dramatically increasing rental property cash flow.

 Now is the time to take advantage of an Investor’s Market!