Are Lenders Lending?

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Real Estate Agent with ReMax Preferred RIL#b16447 MAL#9501751

That seems to be the question a lot of Commercial and Business Brokers, as well as the Residential Realtors with listings  priced over $200,000, are asking themselves.  Whether it is a commercial property buyer with a 720 FICO, restaurant experience, and a 25% downpayment who cannot get a restaurant property financed because the lenders "would rather not finance a restaurant", a commercial property buyer who is not willing to put a $350,000 downpayment on a million dollar building, or gas station owner who can't sell his business even though he has tax returns substantiating ten years of consistent, and increasing, revenues and profitability.  In southern New England, it seems that the "bread and butter" deals are far fewer, and further in between, than I can remember.

It seems that the deals that are getting done are those with Seller Financing.  The Lending Guidlines are more stringent than ever, and more and more buyers are finding their Credit Score is declining due to reduced credit lices, and a higher than optimal DTI.  Even many of the first time home buyers attempting to utilize the tax credit can't qualify due to either poor credit profiles or an inadequate downpayment.  Personally, I have been very busy the past six to twelve months; unfortunately my closing ratio has not been reflective of the level of activity.

What are you doing to close deals in your area?  Please post your thoughts!

Be Healthy and Wealthy,

Joe Luca

Luca Commercial

Realtor

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Rainer
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Alexandria Virginia
Featuring Susan Craft, CRS, REALTORĀ® - McEnearney Associates - Alexandria, VA
Real Estate Editor

I find clients that try to work with a traditional bank, are getting the run around.  Those buyers that use a mortgage broker are coming out way ahead of the game.

Nov 23, 2009 07:49 AM #1
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Rainer
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Joseph Luca

Joe Luca
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