Community banks are still loaning money to local borrowers for local projects.  You'll probably need 25% to 35% down.  This might be a good time to think about bringing in partners or investors for the equity you need.  Owning part of a good dead is a lot better than owning all of nothing.  Now is the time to invest!  Prices are at all time lows.  Good, solid properties are being sold because the owners cannot refinance, or because the properties are cross collateralized on other loans, or because owners have capital calls on loans secured by stock portfolios.  Remember, a bargain property does not mean a bad property!

Owner/occupant properties are the most desirable loans right now, from the banks' point of view.  I'm encouraging my students to buy duplexes and fourplexes, and use one unit as their personal residence.  Established businesses who rent space: Buy a property now!  Prices are cheap and lenders are hungry to book loans.  Many of my clients are choosing to expand into larger space, and rent out their former locations as investment property.

Fannie and Freddie money is available for multi-family housing.  Originators who used to turn up their noses on anything less than $5 million dollars are now calling me to ask for referrals on $1 million loans!  Expect to see 70% to 75% financing, with non-recourse loans still available for larger projects.  Also for multi-family, HUD loans are still the best bet, if you can wade through the paperwork. With President Obama's commitment to affordable housing, expect to see more money flowing into HUD.

Don't overlook seller financing.  Two years ago, if you asked for seller financing the seller looked at you like had leprosy. What was wrong if you couldn't get 100% non-recourse financing from some lender?  Now, it's hard for lots of credit worthy people to get loans.  Always ask about seller financing when interested in a property.  Our old friends from the 1980's-assumable loans and wrap-around mortgages-are back in vogue.  Remember, that "due on sale clause" is not automatic, but simply something that can be exercised if the lender chooses.  These days, many lenders are choosing to allow the sale without calling the loan!

If you survived the late 1980's and the early 1990's, brush up on some of your old tactics and skills.  They are valuable again.  If you are too young for that, find someone you used to consider an old coot, and strike up a conversation. I guarantee, you'll learn a lot.

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