Posted by Gerry on January 13, 2000 at 21:06:19:
I have been a full time investor for fifteen years. I develop residential land but also flip singles and multis in MA/NH. I have done many simultaneous and three-way simultaneous closings over the years without any problems. Very recently I have had buyers that were turned down for financing because I did not own the properties that they were buying from me for at least six months (the lenders’ seasoning requirement). This was in spite of the fact that the buyers qualified and the properties appraised for the selling price. The sole reasons for the lenders’ denials in these cases were that the deals were flips and these particular lenders had new policies against financing flips.
I also do owner financing and my note broker has asked me to inform her when a particular deal is a flip because even some private note buyers have new policies against financing flips.
What are the rest of you experiencing regarding this trend?
If this is in fact a trend, we should all be concerned and in search of a solution. These types of policies, if employed by a majority of funding sources, may put us out of business.
Gerry