Posted by Ben Carmona on July 22, 2007 at 21:03:59:
Thanks for your thoughts. When I say “banks”, I mean local community banks where the properties are located…not large national banks which offer wholesale options. Obviously their Fannie Mae loans will limit you and there really are no good wholesale rehab loans for investment properties. (with the exception of 1 that operates very similar to hard money).
Local banks should be able to close your projects within weeks. Here in St. Louis there are 2 banks that work terrificly with rehabbers. It took me several weeks of making phone calls but I knew exactly what was needed and found it.
20-30% is not a huge discountwhen when working with rehab properties that need to be funded by hard money lenders. By the way, there are plenty of lenders that allow for unlimited properties.
It doesn’t appear you’re real familiar with hard money rehab loans.
#1…most operate using draws and inspectors similar to banks.
#2…rehab loans are not purely equity driven…“as-is” loan with no rehab funds…yes, but not rehabs. You already made recognition of this and it’s that way with jus about all of them.
You should know as a mortgage broker that your best chance of finding a lender will come from a broker, especially one that specializes in investment loans just like these.