Investment Loans in the Smokies

[John Carbone]

I’ve been exploring some options to make another purchase in the smokies. Local community banks here are at 8.5 percent with no points. The higher ups I’ve spoken to believe they will get close to 10 percent on their loan products if the fed continues to hike as markets are starting to price in.

At these levels, who is borrowing money interest only around here to fund new construction, and if you are what is your business rationale? also, if you are buying existing right now are you doing so with the expectation to break even? 

I check mls rather frequently and I’ve yet to see something that I felt I needed to buy to add to my portfolio. There is one property out there now that somewhat fits the metrics but it’s still low margins with a large payment and a lot of risk. 

i am seeing a ton of properties that go “pending” going back on market a few weeks later “due to buyer financing issues” I feel like the new reality hasn’t set in for people yet.