Dramatic huh?

But, that is what gurus are screaming about the recently announced change from Freddie Mac on refinances. A similar change is expected from Fannie Mae.

What is the change? They will not allow a refinance if the property has been in an LLC any time over the last six months.

But, not to worry, these same gurus are touting their “solution” to get around this. The funniest name I read for this is called a Sandwich Trust and they are trademarking it! Now, if that doesn’t make you laugh out loud you need to get another cup of coffee and wake up.

This only affects investors who cling to residential lending programs for their investing. Those of us who have graduated beyond this kiddie pool of the investing financing world are absolutely not affected by this new change.

Now, why do you suppose Freddie and Fannie are doing this? Yep, you got it, they want to wring out the investors from the residential lending market.

The funny thing is there are plenty of programs and strategies available to investors without resorting to the residential lending pools. But, the gurus don’t teach about them, primarily because they don’t know about them. I mean, you have to actually invest to learn most of this stuff. Since the books, seminars, boot camps and such all fall-back on the residential programs most investors get stuck after just a few deals.

If you are an investor and you haven’t developed a relationship with a commercial lender, you need to start now!