The screening process is so important and the one's who move people in all the time have a 6th sense for these kinds of things.

In many cases, the contractors who agree to that kind of thing are either inexperienced, desperate or scammers. 

So, the common person may ask - well how is me funding the rehab myself any more risky for the lender/why would they want to limit leverage?

It's super frustrating when you work with investors every day, and the common refrain is I want to buy a passive turnkey property, but it must cash flow.

While more development did happen over the last few years from development projects started in 2021 and 2022 when rates were lower and developers could outlast supply chain issues, the upcoming supply is expected to drop again, as we will discuss later on, with the relatively sharp rise in interest rates that has dried up investment capital due to the fear in the market, sellers opting to hold out on their land and or properties until cap rates and interest rates subside again as is expected in the coming years, as well as banks being cautious to lend on real estate due to this sharp rise putting many projects that were started in 2021 suffer greatly from a 7x increase in rates over the following 40 months that had adjustable rates or 5-year terms which is very common in larger multifamily investing.

Most places require 40k in reserves to get a 200,000 HML so it would definitely take a while to save that kind of money up.

Hey Justin,Our borrowers have successfully used all of these wholesalers, but these investors all have one thing in common in that they conduct their own due diligence. 

Thank you for the kind words.

Every now and then something will slip thru like that, but it is not common anywhere in the country.#4.

The buyers and potential renters in that particular neighborhood will not be phased or even aware of that kind of violence.