Demise of Hard Money Lenders and BRRR can be affected

[Jay Hinrichs]

I have been chatting with a few HML both east coast and west coast.. some are pulling back quite a bit but keeping doors open
Others are just calling it a day..

In my talks with these folks for now anyway the ones that are continuing on will be looking to their very strongest and most experienced borrowers.. No new borrowers or light experience.

Cash out refis  TOUGH

Long term low rate investor loans off the table for many of them.  The big buyers of the paper put the breaks on.

Pricing is going up.. After years of competition drove pricing down.

bottom line in my mind is your going to also have to get a better deal on that fix and flip to keep margins.  So wholesalers probably going to feel a pinch when their buyers cant get financing etc.

Key now is to keep on good terms with lenders you have and hopefully they will stick with you.