Find Out How Fannie Mae Can Help You As An Investor by Tony Martinez
Tony Martinez is the Founder and Chairman of the US Tax Lien Association, which is an organization that is committed and dedicated to helping others achieve total financial freedom through the power of investing in Tax Lien Certificates. With over 30 years of expert experience, Tony is the world's #1 authority on the subject of creating enduring wealth through the little know strategy of investing in Tax Lien Certificates, which gives anyone the opportunity to earn guaranteed fixed rates of returns of 18% – 36% interest per year, and acquire valuable real estate for approximately 10% of market value.
Here at the US Tax Lien Association we have decades of combined real estate investing experience. One of our student mentors, and Tony’s and my longtime friend, Ed Mitchell - spent many years working as an appraiser. He knows how to evaluate properties, and how to estimate their fair market value. This skillset is extremely important as an investor so I would like to pass on his lessons to our readers.
You’ve heard it from us before, but I’ll say it again, you make your money in real estate when you buy. This is a golden tenant you must always keep in mind. So, you can understand why it is so important to properly estimate the fair market value, or FMV, of a prospective investment property. If you don’t know what a property is worth, how can you determine a purchase price? Rehab costs and needs? Your profits? Really, the entire deal hinges on the value of the property.
So, how can Fannie Mae help you in this regard? Well, Fannie Mae has guidelines for selecting homes as comparables, or ‘comps’, for appraisers to follow. Just to go down a rabbit hole for a second...Fannie Mae has these guidelines in place because it holds lenders responsible for the accuracy of the appraisal and marketability of homes. Fannie Mae doesn’t offer loans directly, instead it’s a government backed agency that buys the mortgages from banks and the like so that those institutions can lend to more homeowners.
It’s in Fannie Mae’s best interest to purchase sound mortgages, so their comparable guidelines are an excellent resource. Some of the guidelines are listed below:
Remember, it’s important that you estimate the fair market value correctly before purchase. This is a skillset you should perfect.