Posted by Jim Holmes on March 18, 2000 at 24:07:45:
I have a feeling that the future is bright and the current situation is only a temporary learning point.
Growing Pains and where are the lenders? - Posted by Jim Holmes
Posted by Jim Holmes on March 17, 2000 at 24:27:07:
This is a post to vent. I have about six properties and all cash flow, five do well and one is – well a dog. Lately when I’ve gone to do deals I find my rates going up and less lenders to fund them. The broker I’ve been using has been telling me that because I now have over four properties, financing by lenders is becoming more expensive and difficult to obtain.
The funny thing to me is that the more experienced I get in REI, the better deals I make (more cash flow, better ltv)-- so is this my problem or does a little success dry up the pool of lenders? Please give me some feedback.
-Jim from Idaho
Re: Growing Pains and where are the lenders? - Posted by Jim Rayner
Posted by Jim Rayner on March 17, 2000 at 08:21:41:
Jim,
In 1996 I was where you are now listening to mortgage brokers tell me the gig was up at 4 properties. After some more searching I found a broker that solved that problem but then I began to see nothing but investor rates 1-2 point higher than before. His statement was I would get through perhaps 12 deals then hit the next brick wall with the lending community. Guess what I could not find financing for my 12th deal. It was now August 98 and I again was stuck in a rut. But then along came Terry Vaughan and Ed Garcia and their lenders workshop which I attended in St Louis along with 49 other “winners.” Terry and Ed forever changed my life that week-end and continue to this day to be Friends that I know will always be there when I need them. I needed a new perspective and a new approach and a new attitude most importantly a new plan and structure. Since that week end in August 98 I have only done 5 deals, the financing has been a piece of cake, and oh yes, I have made 1.4 Million in the process. I don’t look for lenders anymore they look for me so as others here have suggested I urge you and anyone else reading this post to apply for the lenders workshop its more than just about financing, its about planning, deal structuring and getting you out of your comfort zone and making more money with fewer deals and the mentoring alone is worth more than the price of the workshop. I will be there again this year myself to share with those who come my experience and perhaps pick up just one more tool to add to my investor tool kit. Hope to get to meet there.
Re: Growing Pains and where are the lenders? - Posted by SCook85
Posted by SCook85 on March 17, 2000 at 07:35:14:
Jim,
It is not just you. But I can assure you that plenty of banks still want to lend you money. You just need to look in the right places.
I would recommend going to local savings and loans. They will be the most flexible with you, especially since you have a track record. With the amount of money available right now you wouldn’t think that banks would be that tight, but I’ve seen them get tighter and tighter over the last year and a half because of issues with investors. It will free up in time. Just keep in mind the local banks have a lot of money now also— USE IT!
Happy Investing!
Steve
Re: Growing Pains and where are the lenders? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 17, 2000 at 01:13:44:
Jim, you are a prime candidate for the seminar “How to get Lenders Fighting to Give you Money”. I don’t know if you are new to this site, but Ed and Terry are the masters at solving this problem. Click on the banner above and read about it.
Stacy