Are any of you experiencing any difficulty getting t/b financed? we have several deals taken off the table, with not being able to get them financed through sub prime lenders recently. Just wondering if anyone is experiencing the same. And if you have any suggestions to get us through this recent sub-prime market drop. :banghead
Are these short term holds? Try hard money or private money lenders. They don’t take order from the stock market. For longer term, a local bank that holds loans in-house may have more liberal underwriting standards. Most of the long term investors I know don’t have problems getting loans in this environment.
He’s trying to get tenant buyers in lease option deals financed at the end of the lease term. These aren’t deals that he needs to finance short term for himself.
I’ve had a few hiccups with tenants recently.
On one unit we informally extended the lease term giving the tenant a little more time to procure financing. They didn’t feel they needed to go the hard money route.
On Another unit we hooked them up with a small private lender that we do business with, not hard money rates, but they’re not countrwide either. That lender is in the midst of dropping their LTV, so i’ll probably have to hold more of a note than originally agreed.
In retrospect, i probably could have been a little pickier when it came to credit and background checks when we did the paperwork. For obvious reasons, that will be more important now, and probably for the next year or so.
I’m also buying a townhome as an investment property from a developer who had four people in contract on a property in the last two months. Every single one of them fell out of contract because of financing. They were made offers, they just couldn’t afford the payments.
Good luck,
Craig