He has a $5 bill monthly revolving budget with top ups if needed.A recent deal in which I have been involved in with him ( and a nice little earner for self ) has been a reverse sale of $100 mill ( well 98.7 mill ) of bulk purchased and inventoried REO's.

What will you do in 3 years if you still can't get a conventional loan?

There are different rules to commercial loans then conventional loans and mortgages.Commercials loans do not show up on your credit report unless you don't pay them or become deliquent.

While even these "star" markets will be working their way through a period of price adjustments or a lengthier listing period at least their core fundamentals are sound.Those home owners who are unable to pay their upwards adjusted mortgage payments and who have not been able to re-negotiate their loan terms with their Note holders will assuredly become "tomorrow's renters".It's already started in many areas... rental availabilities are rapidly shrinking = a strong potential for investors willing to build SFRS for rental or for "sale" under Lease with Option to Purchase contracts, 2-4 unit multi-family and new apartment complexes.In Myrtle Beach and parts of Charleston (SC) developers of recently completed condos are now replacing unresponded to FOR SALE signs with "Lease with Option to Buy" signs and are now actually seeing evidence that strategy is WORKING.Savvy real estate investors are targeting "spec" builders with unsold inventory that has become a "money drain" in terms of interest carry and are buying SFRs for 10% - 20% below actual cost to complete.

They may have a loan assumed at a lower than current market rates instead of having it paid off in a conventional sale, remaining on the hook at a lower rate.

Well, I receive A LOT of my available inventory through various partners/associates I've been doing business with for the last 4-5 years.

However, if you have to do a double close, the end buyer probably can't use a conventional lender.

If LTV remains below 70% or 75%, how much higher are hard money loan interest rates and closing costs as compared to conventional loans?

Their problem tends to be verifying it using conventional methods.

Flat market, with lots of inventory available.