Are Banks Still a Viable Source?

[Ryan Wilkinson]

I'm an investor in SE Michigan. I know the market here in the Metro Detroit area is different than it is in the rest of the country but I'm curious to hear your thoughts as to how exactly is it different and why?

One big reason its different is bank financing is nearly impossible to get even for those people who meet the qualifying criteria themselves. Prospective buyers often find out just prior to their scheduled closing date that the bank has found a reason not to lend on the property. There will be a low appraisal, seasoning issue, insufficient comps to support value...etc. Therefore it has more or less forced our business to be all cash sales or if our clients need financing then we must provide it with private money. Don't get me wrong, this creates an unbelievable opportunity to fill a need but I'm curious how it is for you.

How is it in other states? I hear about people getting loans. I listen to discussions where the entire strategy revolves around some form of bank financing. So please tell me how you are getting deals done. Are banks lending in your area? Are you purchasing all cash? Selling all cash? Using land contracts or lease purchase?