Current State of Real Estate Financing: March 23, 2020

The information below is to simply inform you and help you make educated decisions about your investments. It is NOT to instill fear or anxiety. We’ve had more than enough of that lately.

What We Know

We have spoken to banks, lenders, title companies, and many others in the industry. This is what they’re saying:

Title: Most are still open and recording documents (even if the counties they work in are not).

Banks/Lenders: Most are still open for business, but lines for financing are forming fast. Don’t wait to get in line for yours!

Non-QM Lenders: Most have closed and are not able to provide funds to investors at this time.

Bottom line: The number of lenders and loan products are dwindling. That means lines for available loans are going to grow longer and longer. It’s smart to hop in line now. The longer you wait, the longer the line will be.

What We DON’T Know

It’s fair to predict that the road ahead will be tough for many real investors. But rest assured, it’s not all doom and gloom! Even now, creative financial measures are being taken to help investors find ways to make money during this volatile time in our industry.

How Investors Are Reacting

Right now, investors seem to be experiencing a variety of reactions. Some are stumped and frustrated with their investments/investment plans. Others are determined to make the best of these dark times, and are discovering innovative ways to maintain or increase their cash flow

What YOU Can Do

• Get in line! If you want to secure a loan for your next deal, you need to get in line now. The longer you wait, the longer the lines will grow.
• Get creative! There are many ways to manage your real estate portfolio. Need help thinking outside the box? We can help.
• Stay positive! It’s so easy to get sucked into the media mayhem of fear, uncertainty, and anxiety.
• Stay active! This is a rare, unique time in our world, and as difficult as those times might be, we all know they pay off in the long run. But ONLY if we take advantage of their unforeseen opportunities. So don’t sit back wait. Dive in. Act now!

Money helps drive the real estate investment engine, and we all need to stay informed on where it’s flowing. Those who are well capitalized and looking to benefit from this market will need financing. And there are still many options available.

What are you experiencing?

Want to chat more? Contact us with your email address, and we’ll keep you up to date as the real estate investor market changes.

Feel free to send us questions, comments, and feedback! We’re here for you during this turbulent time.