So, I read earlier that Fannie is going to restrict second home and investment loans to 7% of the total portfolio. Calling all of the financial gurus on this one ... how will this affect BRRRR? Expanding a portfolio into the dozens of properties using that good old credit union?
Are we headed into a new sector of fix and flip because finance will be hard to acquire?
Any input to share with the whole of this community will help all of us to succeed once these regulations are put into action.
@Michael Farkas , there was a conversation about this elsewhere on these forums a day or two ago. My stance is lenders are going to find a way to approve lower quality borrowers, in order to keep the denominator as high as possible and not needing to pass on these presumably very lucrative loans.
Joe Spitrock, on here, was mentioning how most major lenders are well above that 7% threshold as it is, so something major will need to change to accommodate this new rule.
How it will effect BRRRing: assuming my first comment doesn't come true, is rates will be going up to reduce demand, and more investors will begin looking for balance sheet lenders.