When I asked how her deal was coming along, she replied that her sale fell apart “at the last minute.”
I asked “Why?” especially when I knew it was such a good deal and she had perfectly priced in that neighborhood.
First – Let’s dispel the myth about investment capital. There is money available for investors.
Banks have money available for investors – and at pretty great rates.
It’s what we call a normal market for investors. In 2005-06 you could get an investor loan by walking into a bank and fogging a mirror. Today, you will need decent credit, 20-30% down, qualifying reserves and a well priced deal – but the money is there.
But at WREIA this month local mortgage and banking professionals are going to answer two BIG questions for investors:
- Who is lending to investors?
- What is their criteria?
Back to my friend – lack of funds was not why her deal fell apart at the last minute. She was trying to sell her property – after she had finished about 80k of renovations. She had done most of the work on a very tight budget – but didn’t have the documentation to prove the amounts she had spent. This simple mistake kills deals today.
– THE LESSON –
Next Monday we are going to talk about selling your investment property in 2013 and what you can expect from your retail buyers when they are coming to the deal with traditional bank financing.
It’s a whole new ball game when it comes to traditional financing for your buyers.
It’s going to change again on January 10th, 2014 – and you can be ready for it.
Keep going today, stay motivated and get your ticket to WREIA for this Monday, June 17th. We are going to help you lay out a business roadmap for the last half of 2013.
Let me know if there is anything I can do to help your business,
Washington REIA Network, President