Questions for this Lender - need some advice.

[Mat Lewczenko]

I'm meeting with one of our small regional banks on Thursday morning, they actually DO REHAB LOANS - right now even!

They will do up to 75% ARV loan, with 50% of the rehab scope of work in escrow from us, in an account until work is complete and reappraised.

Their terms are good - 1 point, 7.5%, 30yr amort with a 5yr balloon. The only thing that I need to figure out a way to pitch is that over the phone the rep said that they "Don't do Flips", they want the loan on the books for a year minimum, for the interest. hmmm.

I said ok, no sweat. Thing is, is that we would like to flip if we can, but are prepared to hold if we can't sell. I wanted to get some ideas from the BP family as to some ways to get them to say okay if we decide to sell in a year.

Some of my thoughts to counter their objections:
1. Pay them the balance on a years of insurance if we sell as a "prepayment penalty".

2. If we sell, and pay the years interest, we will more than likely do another one right after that, and maybe two at once.

and that's where I'm asking if anyone else can chime in with some advice.