They are not paid out of pocket.Hard money lenders have the freedom to approve or reject you deal based on their personal bias.

THEN i got an automated listing alert and they had DROPPED the price to $6,000 less - we had offered $265,000 - they rejected it and then lowered the price of the house to $259,000.

:roll: However, they still reject my offer that will clearly cover their mortgage payoff and agent fees, and ask for considerably more in the counter.

A full price cash offer received 2 days later (by a friend of mine as it so happens) was accepted by the realtor as highest and best, by that time though I had directly gotten the AM to accept my offer in writing so the cash offer was later rejected by the AM.The same bank sold at a trustee sale to another client of mine the same exact house in better condition next door for 72k which we resold for 116k (cash 3 day close).

My offer was once rejected and I was waiting to make an offer again, before going foreclosure.

The other thing I might consider is changing the holding cost from 4 months minimum because you never know how soon you can actually get all the approvals and work done to complete the condo conversion and also the time needed for a buyer to close on the place (hopefully you don't get qualified buyers who end up not getting the underwriting department of their lender to reject providing the mortgage thanks to an appraiser).

And what does that do for your reputation if you are consistently making offers at 65% of their true value and getting rejected 99% of the time?

Do I still need to send them a rejection letter even though I did not reject them on the basis of credit and never even ran their credit check?

Sometimes they just don't understand much about investors and the easy answer is just to reject what they don't understand and say no to the idea.You also wouldn't be "inactive" if you are buying properties and representing yourself and listing properties that you want to sell.

Check with the buyers loan officer and see what requirements the underwriter will have BEFORE getting 45 days down the road and the underwriter reviews the title commitment and rejects the file