ReCasa Financial Group

Many real estate investors who plan to buy, rehab and quickly sell for a profit
are finding it additionally challenging to sell their properties in today's real estate market.

While investors are still having success selling their properties; marketing times have increased while sales prices have decreased in many markets. We strongly recommend paying off the rehab loan prior to listing the property for sale. Once permanent financing has been secured, the investor can take the extra time that is sometimes necessary to successfully market the property. When a non-owner occupied property has been listed for sale, securing permanent financing is more difficult. There are several reasons why:

Many lenders will not refinance an investment property that has been listed for sale. Some require that the listing be cancelled for 90 days, 180 days, and some lenders are changing their guidelines to 1 year!

Underwriters question the marketability of properties that have been listed and not sold. They also question the owner's desire to keep the property long-term.

Any MLS (Multiple Listing Service) activity will be noted on the appraisal including how long the property has been listed, listing price(s), any reduction in price and when the reductions occurred.

Typically, lenders will not accept an appraisal with a value in excess of the lowest listing price.

Savvy investors know that a good fixed rate permanent financing program with reasonable closing costs will save them money in the long run.

If you have any questions about permanent financing options, please contact Mike Evans at (614) 221-6770.