About As most of you probably already know, real estate investors take many different forms. My friend and mentor had referred t0 the various stages in the life of an investor. He called them “Starters”, “Builders” and “Enders”. There was another stage that for the moment, I can’t recall. But, for this discussion, I shall focus on the enders.
The Ender has accumulated some cash and no longer wants to work as hard physically as he once did. He then focuses more on the financial aspects of the real estate business. He might fund the transactions for a cut of the profits. He might also finance the deals or become the lender. He makes the real estate transaction happen when the banks won’t or can’t cooperate.
As they say, “politics happens”. So, what does this mean? The Obama Administration has plans to address this problem by restricting the lenders. In case you missed it, the Ender has become the lender.
The new rules are:
Who would want to be a lender under these circumstances? That private mortgage would seem to have just lost a lot of it’s value.