[quote=SK in CV] . . . The borrowers in deep trouble. Costs were rarely under 10 pts, often much higher. 2 to 4 year, interest only loans at high rates, usually 5-7% or so more than conventional rates. . . [/quote]
SK in CV, I didn’t really know what his loan terms were. I can tell you that several of his “repeat” customers were “flippers.” His loans were easier to get than high-rate non-owner occupancy loans, esp. if you needed more than one loan at a time.
Back in those days, as long as you “owned” the property for six months and one day before your buyer’s loan closed, 50% of your “capital gains” for tax purposes was excluded from “income.” (Any Pigg-accountant geeks, let me know if I didn’t state that correctly 🙂 The flippers who had the manpower/equip. to “hustle” didn’t NEED a long-term loan.
