Need to work with a lender who is interested in doing business.

[Lou Vascek]

I am not interested in working with a lender who will lead you down thee garden paths for months and then say " sorry, we cant do the deal because there are no leases written. We all know that already, I will not waste any more of my time.   WTF- buying a house, 3 small commercial buildings, corner lot, parking lot and 6 garages....I can easily out 20% down, more if needed. My credit is in mid 700s, no debt an a strong financial profile..... I am not losing this deal because the bank wants leases that do not exist.... tenants are going month to month. Tired of lenders saying  " well, OK, and here is why we cant do your deal " .  I want to work with a lender or bank that wants to say yes, not one predisposed to saying "no ".  Goddamn banks !  Please reply, thank you

[Jeff Copeland]

Dealing with bank underwriting can be a pain in the a$$. I understand your frustration (and share it, I have two simple residential refinances that are approaching 60 days in underwriting...it's maddening).

But if you want the bank's money, lose the attitude and wrap your head around the fact that you have to play by the bank's rules. 

Their job in underwriting is to avoid risk. Having no leases in place makes your deal a huge risk, for both you and the bank. Many businesses are struggling at the moment, and with no written leases, ALL of your tenants could cancel next month...then what?

Written leases should not be an insurmountable obstacle. Figure it out and find a way to make it happen, or plan on paying cash, or at least much higher rates for hard money or bridge loans. 

[Lou Vascek]

thank you, I completely understand the banks position. 

[Lou Vascek]

Jeff- thanks for the input and the reply as well as the encouragement. Appreciate it. 

[Rick Pozos]

@Jeff Copeland must be a real nice guy. When I read the original post I was ready to be super sarcastic, but I will not be too harsh.

BUT, you gotta be kidding that you expected an FDIC regulated bank to lend you money without having ANY leases. That is just real estate 101. You have to be able to prove the rent. Is weed legal in Ohio??

Now for the constructive part: Do the deal with hard money. Get leases with your tenants!! Go to a different bank in a few months after you have some bank statements showing the rental income as well as the leases to prove that you have tenants. It will cost you more money to close twice, but if its that great of a deal, no problem, right?

I am sure the seller was not claiming most of the rent on their taxes and that is why they do not have leases. The problem, of course, comes up when you have to prove the value of the property. How do you really know for sure that the seller is getting $xxx.xx per month. Is it really a bargain if the rent is really $xxx.xx minus $300?? 

The big question is WHY are there no leases?? What is the seller hiding from??

[Arsen Atanasovski]

Rick, can you show me how to ride my bicycle without my training wheels? Please! Also can you give me money? Please I’ll pay you back I promise!

[Lou Vascek]

Again, I understand the banks position, we told them 2 weeks ago that there are no leases. They keep asking the same question.  I am thinking about paying cash and putting a loan after it is run the way it should be.

Seller is not hiding anything. thanks for the input, I appreciate it,Rick. Thanks alot.

[Doran Summers]

@Lou Vascek have you tried liking with a Non QM lender. Rates may be a little higher but atleast you get the deal done in 30 days. It’s basically a no doc loan.

[Lou Vascek]

Thanks to all who replied 

Thanks for the attitude check as well

It all helped 

[Arsen Atanasovski]

Lou if you have the cash I know your going to have to lock up a lot of cash for a few months but if it’s a deal if a lifetime then I would do it. If you think your going to come around other deal in the meantime then no doc loans or HMl is the way to go but not sure if it’s worth it either way I feel your pain I have lost a lot of great deals trying to go to the bank. No all I use is private money. Good luck hopefully it all works out.

[Lou Vascek]

Thanks, Arsen. This is a deal I must do, I cannot let it pass and I'm not going to.  Thanks for your thoughts on this.

I am thinking about this all wrong. My way has always been- there is always a way.  Everyones thought jarred my thinking back. I also very much want to work with this lender.  I will get it figured out

Thanks all