Credit Markets Frozen??

If that is the case how would banks make money. Banks lend money that is what they do, it is much harded to get loans, but they are still lending money. I know Credit card offers to me have not slowed down, and that is still banks lending money. Just my very humble opion.

I got that same email.... LOL! Hey, didn't you refer me to that guy??? Well, I agree with coach Roberts, someone out there is still lending money, we just need to search a little harder or maybe differently!

I thought you sicced this one on ME. haha
I get so many of those things, I hardly pay attention. This one just happened to make me think "What?" so I thought I'd throw it in here. Of course I agree with you and coach Roberts. Always check out ALL your finance options!
(And I hold a coach's opinion at THE HIGHEST LEVEL. I appreciate them so much.)

Rina

I have been trying for loans for a month. I just got off the phone with quicken. No luck. If you have a high dti right now forget it. Here in michigan I put out a challendge to find private or hard money that will look at the deal and not your credit. They do not exsist here anymore, at least not for a while.I have a great deal that's been in my lap for a month. I have talked to two dozen lenders of all sorts. They will not lend in Michigan or you need years of experience flipping. It's very frustrating.

I am still doing 100% financing on all of the deals I am doing. The banks seem very comfortable with what i have been buying. You can still do 100% financing right now you just have to do it differently then you used to. I just adapted to the market. I got turned down by a bank that I have been doing business with for a while on doing a no money down deal. Instead of giving up, 2 weeks later I re-submitted the request by changing a couple parameteers and the SAME BANK accepted it. That was just a couple months ago and it has been rolling along ever since. Now that I figured out how to do no money down deals again I am buying as fast as I can!

There are quite a few HML that has SHUT their DOOR's COMPLETELY!, i mean, like done, business is over. Banks are also still lending money to people, but their getting more and more warry of lending to other financial institutions, which is creating a big problem, their affraid of them(the banks) going bankrupt and going UNDER(ex-leahmans), SULLY.

The hard money lenders I talked to just don't want to deal with people that don't have any idea what they are doing. I just talked to a hard money lender the other day that initially told me hard money loans don't exist anymore. After I told him a little about what I was buying, at what price, and how much it was renting for then he was ready to deal with me all of a sudden. He then just told me he didn't want to deal with anymore of these "flippers" who decided to become a real estate investor after watch "late night TV". (By the way, I didn't have the heart to tell him I got started after watching an infomercial). The morel of the story is this: these people still would like to make money and they make money by loaning money. They are just trying to scare off the newbie's.

I researched, like i said, several HML on google(this was a couple months ago) and when i clicked on their web site it would say something like; "NOT LENDING MONEY AT THIS TIME, CHECK BACK" and this was several HML web sites, that i've checked, but i didn't say they TOTALLY stopped lending all together, theirs still HML's that are ACTIVLEY lending in my area, so, they are still out there lending, you may just have to look a little harder.

I am interested in your approach to 100% financing. Do you mean that you are using a loan program that allows 100%, or are you achieving 100% buy buying under appraised value and getting financing based on full value? What parameters did you change to move forward with the deal you referenced? Care to share the name of your Bank? Please share!

Thanks
Crefin

O.k yes I am a newbie but I put an add on craigslist looking for partner investors and I have gotten phone calls over the weekend from investors that want to put cash into my deals. As a remodeling co. we have agreed to do the work and get the materials if an investors would purchase the property and provide the funding and we have several investors ready to deal. This would make us 50/50 partners and provide a way for us to get funding to purchase (private money) We have co. accounts that we use for materials so we can pay them back as we would a loan. This enables us to purchase homes for flips.

I talked to one investors that was even willing to partner with other investors. He told me that many investors have pulled there money out of the stock market and banks and are looking to invest it in Real estate where they can get at least a 30% return. You just have to be creative in your approach.

We have 2 properties that our co. is about to partner with investors on. We are about to bid on both properties with anxiose owners.

What do ya think guys? Did I do good?

That is awesome! And you bring up a good point. "many investors have pulled their money out of the stock market". There's just that much more private money available! And you are being really creative, aggressively seeking partners, at the same time offering them the assurance of a great REI deal AND a reputable rehab company to see it through. What a great package! I don't think there will be any shortage of deals for you.

Great job!

your DG sis,

Rina

Are you splitting profits after you have been paid for rehab, or is providing labor for rehab your part of the deal?

Al

Here's an example of one of our pending deals:

Investors pays $ 90,000.00 cash for property
Rehab costs $ 70,000.00 which our company provides.
property RV is $ 235,000.00

Upon sale of property...
investor receives his investment $90,000.00.
We receive our investment $70,000.00
$ 75,000.00 profit is split between us and investor.( minus fees and stuff of course)

We guarantee our investors at least a 30% return on their investment.

Your right Rina that makes this money much more accessible to us. Investors have pulled their money out of an insecure stock market and the banks in fear and are now looking to invest their money in something more secure. If you get creative and offer them a secure deal in RI they will more than likely invest in what your doing.

Investors have to have their money invested, it's what they do. So why not offer them something tangible to invest in. Go get their money and use it to your benefit. You just have to be creative and offer them something they cant refuse. You may have to eat some of the profit in order to give them what they want in return but you will still profit by partnering with them. It's better than getting shot down by the banks and making nothing

I really like what you are doing. I have been putting a simular plan together. Instead of offering rehab services (I have a great handyman), I am offering Realtor services, to prequalify deals, purchase and sell or lease the properties.

I wish you great success, Al

Many..

Credit markets are not frozen. Just chilled. Yes, banks are not lending to each other. But that is because they do not have any clue what is on the other's balance sheet.

Businesses have a less difficult time getting loans but there are still some problems there.

Individuals can get home loans and credt cards. Individuals are MUCH more transparent than banks. The myth that "no one can get a loan" is just that.

Private money is tremendous if you can set it up. You eliminate the 4 mortgage rule. You can get below market financing. You eliminate LTV problems. You eliminate seasoning problems. You eliminate paperwork and points. And so on. The benefits to you are LEGION.

The benefits to your investor are basically: secured financing at above market rates.

It can be tough to find private investors but if you do, treat them like gold.