Eisboch wrote:
"Short Wave Sportfishing" wrote in message
. ..


Speaking of selling real estate:


They went to three banks and all turned the mortgage down for the
following reason.

The rents were too low.

Can you believe that? I couldn't so I went to these banks this afternoon,
one of which we've done business with for 35 years, and got on the loan
officers for being really stupid. Apparently, they take the average value
of the intended rental and work that against the couple's income. If the
rental value is lower than the average, that counts against granting the
mortgage. The reasoning is that if the rental is significantly lower than
the average for the area, that is an indication of property value
regardless of tax assessment or sale price.

At this point, I'm working with the loan committee at our bank to see the
light. If they don't see the light, they won't be seeing our accounts as
I will move them just for spite.

Banks and their policies are the most miserable things in life to deal with
in IMHO.
They don't take any risks, are highly profitable, are very willing to lend
when you don't need it and near impossible when you do.

Depending on your goals have you considered owner financing? We hold a
mortgage on a property that we purchased as an investment several years ago.
A young family came along who we knew (friend of my son). They were trying
to purchase their first house but were having problems obtaining a mortgage
commitment due to lack sufficient credit history and the fact that he is
self-employed. We talked to our accountant and attorney and ended up "being
the bank". If you don't need the cash from the sale it's a heck of a deal
for both parties. They got a house and we get monthly payments at 6 percent
interest. The terms are exactly like those of a regular bank mortgage,
including a provision that we have the right to sell the mortgage to a bank
or commercial mortgage company should we decide to receive the remaining
principle in full.

Great minds think alike - that's what we're going to end up doing
assuming that the bank doesn't come to their collective senses. It's
the right thing to do because they've really taken care of the place - I
had to cut the lawn once last year and the minor maintenance things
they do and don't even tell us. They are great tenants and we really
want them to have it.

On the other hand, it's fun to make the bank sweat a little. I know the
President of the bank really well and he owes me. :)