A couple of weeks ago, we had A LOT of loan options for investors.
In fact, it was a little overwhelming.
Now, only a week after the President announced the state of emergency, we have about half the options.
Next week, we’ll probably have even less.
For example, a good friend of mine who is a mortgage broker dabbles in investor loans. This past week, he lost all of his products for investors, except conforming loans. Since he is so busy, he decided to stop offering loans to investors.
Your local banks are also putting a hold on investor loans. Since most of their clients are small businesses, they need to wait to see how their portfolios handle the shutdowns across the nation. With small businesses being forced to close, their current loans and deposits are in jeopardy.
Not only that, but small banks also have loans out on real estate that rely on small business employees to pay rents.
Banks are going to be more selective right now.
What does that mean for you?
- Less options and fewer lenders
- Longer lines (longer than the ones you waited in for groceries the past two weeks)
- Higher pricing and lower LTV’s (on non-conventional loans)
This is a supply and demand market, and with only a small portion of lenders still working the investor loans, the demand is sure to outweigh the supply.
There’s no doubt you’ll have many investment opportunities coming your way. But to take advantage of those opportunities, you need to have the financing ready to go.
Get your team together NOW! Make sure those helping you don’t just dabble in investment loans. Make sure it’s their primary focus.