With the banks still not lending (at least not in my area of Minnesota) and with there tighter underwriting criteria, what are investors doing to obtain financing? The biggest hurdle that I have is that I have 8 properties, 4 more then what most banks are currently allowing. The other is being self-employed. How are other investors getting around these obstacles? I’m aware of lines of credit or even seller financed deals, but are any investors still using banks?
I am thinking more are going for private funds ?
may be even JV deals with others who are more cash rich and not so cash poor ?
I am trying to figure out the same thing. I made several offers on lower priced properties yesterday with a proof of funds letter from a hard money lender , but most of the realtors came back saying they have other all cash offers.
One realtor even said she “probably wouldn’t accept a prequal letter from that lender” and that supposedly she heard he is out of money…who knows though.
The status always shows “Active” on these listings…but then they claim there are a bunch of other offers…I guess it could be true , but who knows.
I don’t want to pay all cash as then I limit how many properties I can purchase.
I think that all cash is what the /some realtors want
But they all most never get what they want /they say the seller wants
But a proof of funds /preapproval letter is just about the same deal as all cash
And really how would a realtor in most cases know if a lender was out of money ?
I have had to go through many realtors to get just two who understand and will work with any type of investor s
And it helps to some point one is a investor as well
Yeah…I think it might be because the hard money lender in question is also a Realtor himself…seems they are trying to ruin his reputation…who knows.
I think most of these realtors do a disservice to their clients as they play games and make it difficult to sell. Money is money and it’s all cash to the seller whether it’s hard money loan or from a bank account.
Or maybe they just have something against investors and want every property they sell to be “someones dream home”.
There are few realtors it seems that understand the investing business , so it is frustrating.
Also , I am making offers directly…without a realtor you would think they would be happy to get more of a commission, but it seems they view this as a bad thing.
Investorman
Have you considered paying for the property with your cash and then paying yourself back with the Hard Money Loan? If you have the cash I don’t see why this wouldn’t work!
You need a portfolio investor. However with the new guidlines (I’m no experty in conventianal financing) I think the new limit across the board it 10 loans.
quick question i hope applies if i live in utah and the properties are in ohio and georgia do i find a lender there or in my home state?
I am using POF letter, but I am with a program that offers training, the contracts, POF letter and title company(which is nationwide). If you would like to check them out here is the link
http://www.investorvision.info - they have webinars weekly.
Recently, I had an interest in a builders model, which has been on the market 469 days, my realtor said she called the listing agent and he told her that he had a cash offer for $169,000, the current list price is for $179,000 -mmmm. I am not sure if they are both trying to work me over. :bobble
Here’s the chicken-or-egg-first, or “Catch-22” giving me migraines these days: Many great SFR deals, but private lenders and hard money lenders want me to have them under contract before they will look at the deal. I don’t want to put property under contract unless I’m sure I can get a loan. Frustrating. :eyecrazy Anybody got experience with this? Thanks.
Banks? What are banks? :grim I consider them dead. We have to start financing ourselves - Be The Bank. Until then there is a looooooong list of hard money lenders (look at list to your left under Investor Resources) on this website. Yes they’re expensive. But after a deal or two you could probably negotiate better rates/fewer points. Good luck to everyone.