Point User Guide 293Investment loans4 In the If Construction Loan section, enter the estimated construction duration, inmonths, in the Period field or click Calendar and enter the estimated date range of theconstruction.5 Enter the amount of the required reserve in the Req Rsv field.Investment loansCreating investment loansTo complete a loan on investment property:1 Create a new borrower file.2 Complete the Borrower Information screen as you normally would with thefollowing exceptions:a In the Purpose of Loan section, select Investment.b Complete the Sales Price, Loan Amt, Note Rate, and Term/Due fields.If the loan is a refinance, complete the Appr Value field and leave the Sales Pricefield blank.c Click the Investment button to open the Investment Information dialog box.d Complete the Gross Rent and Occ Rate fields for the subject property.3 Open page 2 of the Loan Application and complete the following information in theMonthly Income and Combined Housing Expense Information section:a Complete the Gross Monthly Income section for the borrower and the co-borrower, but exclude the Net Rent field.If net rent is a positive amount, it is populated from the Schedule of Real EstateOwned section on page 3.Related informationRefer to Chapter 5, Loan Application, for more information about theLoan Application.NoteThe Net Rent amount transfers with to the Pos Cash Flow (Subj Property)field or Neg Cash Flow (Subj Prop) in the Underwriting section in heTransmittal Summary (1008).NoteThe amount in the Total field for the Housing Expenses represents thePrincipal, Interest, Tax and Insurance (PITI) of the subject property.The amount in the Net Rent field equals the Gross Rent field times the OccRate field minus the PITI.The Net Rent field shows the positive cash flow or negative cash flow forthe subject property.
