Attention Experienced Investors -> What do I need to do to restart my business?

Financing, Hard Money Lenders, Private Money
1

Real Estate Traditional Finance Killed my business…

Are there way to get my business restart again?

Here is My Skill and Experienced Level:

Real Estate Realtor: 3 Years (Lexington, KY) focus on investment properties.
know all the BPO, foreclosure deal in town…

BPO Agent: 1 Year, did various BPO jobs all across the central Kentucky
area, to mainly learn how bank determine the value… also have direct
contact with the BPO company…

Internet Marketer: 1 Year, Expert at SEO, Listing building, Product Launch…

Land Lording: 3-4 Years, get rental as soon as I made 1st sale in real estate as an agent…has local knowledge who to hire as contractor, handyman, cleaning lady, currently managing over 10 properties for both myself and my client…

Credit Rating: Excellent…

– I felt, I am just wasting my talent and experience away —

Traditional Financing has killed my Buyer’s business, but brought
more renters to my rental business…

How Do I get financed these days?

I want to buy and hold for long term, and get in Rental Income…
When bank are requiring 20% of your own cash down… as investment
loan… It just don’t make sense anymore…

Also, 6 month reserve in cash, on every single property you own…

If I can find out how to over come this…I know both my rental and real estate
business will double…

This is a great opportunity here, Lots Deals, Not many competitions (finance issue),
yet rent keeps increase, because demand increases, people foreclosed, people
can’t come up with down payment, will look for place to RENT…

Any input, or comments are welcome…

Thank you in Advance…

Han

2

One of your answers could be and in fact should be the money to fund the deals

Ed

3

Hi

I can feel your pain. You are correct that your down payment requirements these days are 20% on most non owner occupied loans. The primary reason for this isnt that the lenders wouldnt be willing to go to a higher loan to value or LTV, but the issue is that there wasnt until somewhat recently, PMI companies that would do the loan.

The PMI companies, just like the lenders have gotten killed in this whole melt down. There are very few PMI companies that have even survived and so their willingness to stick their necks out and insure a loan of higher LTV that is a non owner occupied came to a complete stop, and is just now starting to ease up which means you will see LTV’s in the 85 and 90% range and so your downs will need to be 10 and 15%, howver do not ever really expect the 6 months PITI reserve reuirements to ease up, you will be required to have this to qualify.

My suggestion if you dont have the money the lenders want, would be to look for owner financing. Anytime it is hard to get financing through traditional channels, you should find more sellers willing to carry a contract. Remember that if the average person cant get financing, then the seller in order to sell during these tough times, must offer attractive terms of some sort, such as owner financing, just to increase their odds of selling their home. This is not always the case, but in general yes it is.

Good Luck