Realty Flipping Guide

I just got off the phone with the commercial lending VP at a small local bank.  This bank just survived its first Office of Thrift Supervision audit since the financial meltdown.  This audit took the better part of two months — all for a bank with less then $200 million in assets.
As I mentioned, they survived.  That means that the auditors accepted their loan products, their underwriting processes, loss mitigation methodologies, and their loan delinquency rates.  All-in-all… not a bad day at the office.
Except that the auditors were very concerned that this lender is one of a few in their market that is still catering to real estate investors and as such, were exposing themselves to ever increasing risk as fewer and fewer lenders were available.  Coupled with this is the pessimistic economic outlook promoted by the auditors over the next 3 – 5 years.  It ain’t pretty, and the regulators are […]

Original post by Peter Giardini and software by Elliott Back