Rehabbers profits shrinking in tough buyer's market . . . are PML terms getting more competitive??

[Donna Smolinski]

I'm curious to hear from rehabbers that use PML for short term financing. Are you paying the same as two years ago, or have the rates & points become more competitive?

Two yrs ago, nobody would care about 10-15% and 3-4 Pts because there were big profit margins in rehab/flipping. Things have changed, now that the inventory is so low and everything is being bid up to almost full market value. It's really tough to make a decent profit on a rehab right now (I'm in SoCal). How is this affecting the PMLs? If profit margins have shrunk for rehabbers, then it doesn't seem that Investors could afford to pay the high rates and points anymore. Are most Investors now using their own cash? We only financed one of our properties in the past 2 yrs, profit margins were bigger then, so it made sense at that time, but not anymore.

Curious to hear some input from you all :)