I have an investor that I am working with that has 7 properties financed with short-term construction financing that is having much difficulty refinancing into permanent financing for cash-flow rentals. Every bank and/or conventional financing institution he has approached, has turned him down due to the current lending hiatus.
I know there are high net worth individuals out there, surely in my geographic area, that are liquidating stock market holdings and or maneuvering their cash holdings in order to avoid major losses from the scare of failing banks and crashing stock market.
Do any of these people have faith in the idea of lending money to a Real Estate Entrepreneur, for cash-flowing rental property, secured by a 1st position lien on the Real Estate, further protected with full coverage insurance in the event of catastrophic loss, for a decent and reasonable return on their investment over a period of say...3 to 5 years...depending on their own comfort level for length of commitment?
It's gotta be better than watching their hard earned cash diminish into oblivion in stock market mutual funds, or having their bank tell them that they can only get 50cents on the dollar for any amount over the $100,000 covered by FDIC. This guy needs between $350,000 and $400,000 to refinance the current short-term loans and continue to grow his business. I don't know what is a fair return, it depends on the person doing the lending. I know bank CD's are paying about 2-3%, the stock market is anybody's guess, most likely -2% or worse.
If anyone reading this post, knows anyone that might be willing to talk about it, let me know. I will hook you up with this guy and maybe you can work out a win-win solution.
Doug Voss, KC Improved Housing Solutions 913-856-5466
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