Lender Problems Galore When Selling Rehabs
So I don't seem to have a big problem in finding good rehab projects to buy, I don't seem to have too much of a problem getting those properties renovated on time and on budget (more or less), don't have a problem getting a contract on them, but I'm having a terrible time with what happens after all of that but before settlement- with probably 1 in 3 of my deals falling apart prior to closing.
I've tried to do different incentives and stuff for the buyers of my houses to use a lender who I know can get the deal done, but I haven't had success with that. I've actually had buyers who would rather walk away from the house than change lenders (which seems crazy to me).
I call the buyers lenders and do my best to make sure the lender has fully vetted the buyer- that they've pulled buyers credit, verified their income, etc (of course I've never had a lender tell me they haven't don these things)- but that doens't seem to have helped either.
I feel like I'm missing something here- does everyone just deal with the fact that 1 in 3 of their houses aren't going to close and you're going to lose at least 5 or 6 weeks because of that? I can't imagine that's the case. You guys must have figured out how to get buyers to use your lender or some special qualification you make the buyers lender provide you so that you know the deal will actually get done.
This is currently, by far, the most stressful part of the rehabbing business for me.
Any ideas?