Lenders Vs. Notebuyers For Investors
I buy ,rehabb and sale properties to other investors across the www.nation.Lately I have been having a difficult time getting my properties closed with my investors via www.lenders.These investors have great credit.But the underwriters are making it hard to get these funded .I was wondering would it be easier to sale with a simultaneous closing with a note buyer.Also, these guys don't want to pay 10% interest on their loans. I am looking for solutions to get these deals done. The average loan is about www.40k.Thanks
The lower loan amount makes conventional financing a bit harder.
It could be that you need to change how you sell the properties or the terms. You did not say much about what the issues are. You noted that credit is not an issue.
As to private notes. That is an option. You will have to discount the note and the buyer has to have enough cash in the deal above the note. Hence you will be taking a reduction in what you receive after the discount. If they want to keep the interest rate down then you can take a larger discount.
There is no specific solution based on the information provided. There certainly is the option of either route or you just providing seller financing for a period (if that would improve the possibility of conventional financing later).
I can make suggestions for the notes as to terms and conditions that make the notes better or worse to investors. Lots of creative ways to improve the note depending on exactly what you want and when you want it (splitting the note into 2 could help if you delay getting your full cash for a period is one method).
John
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