Florida real estate investors and rehabbers recently dodged a major financing bullet when Governor Rick Scott opted to veto House Bill 747, which would have made it impossible for investors (and others) to work with private hard money lenders. This bill, if it had not been vetoed, would have gone into effect on July 1, effectively forcing many real estate investors and rehabbers out of business since traditional lenders often shy away from working with this particular market segment. As The Short Sale Gal Kristine Zelazo explains, the last-minute move was a significant one that had the Florida real estate community breathing a sigh of relief.
HB 747 Would Have Restricted Private Hard Money Lenders From Doing Business in Florida
Florida HB 747 was called a “well-meaning but misinformed” move that sought to eliminate an exemption that has long enabled private hard money lenders to work with non-owners on occupied properties with one to four units — the most common and popular property type amongst rehabbers and real estate investors who deal in “fix and flip” ventures.
If House Bill 747 had not been vetoed by Governor Scott, investors and rehabbers would have found themselves between a rock and a hard place because most traditional lenders refuse to work with this segment of the industry. What’s more, the few non-private lenders that do work with fix-and-flippers and rehabbers would have been free to charge exorbitant interest rates simply because investors would have had few other options.
Florida House Bill 747 was the subject of great public outcry from investors, real estate industry professionals, lenders and members of the public who argued that eliminating this key exception would represent a step backwards for the entire state. That’s because private lenders and real estate investors have been instrumental in bringing about a faster economic recovery in the hard-hit state of Florida. In fact, the bill would have made Florida’s regulations even stricter than the federal guidelines, which provide an exemption that covers “loans primarily for personal, family or household use.”
In addition to the House Bill 747 veto, Governor Scott also vetoed a handful of other bills, including Florida House Bill 653, which would have eased the fire protection requirements for older condominium buildings. This decision came on the heels of the devastating London Grenfell Tower fire, which killed dozens of residents when the fire rapidly spread up the structure’s non-fireproofed exterior cladding. The bill would have delayed the deadline for the fire safety retrofitting and the legislation would have also provided an avenue for condominium residents to collectively opt out of retrofitting.
Guidance for Real Estate Investors and Rehabbers
Legislative challenges aren’t the only obstacles you may encounter as a real estate investor. Whether you’re a wholesaler, involved in fix and flips or focus on rehabbing, it takes a lot of knowledge, skill and expertise to get ahead in this super competitive niche. That’s where you can benefit from working with an experienced industry professional like The Short Sale Gal Kristine Zelazo, an experienced investor, negotiator and founder of The Bird Dog Program.
Through The Bird Dog Program, Kristine offers mentoring and guidance to new and even experienced investors who are seeking to make money (or make more money) investing in real estate deals, including foreclosures and short sales. In addition to working with her program participants on joint ventures, Kristine also serves as a consultant to real estate investors who need advice and guidance.
Kristine Zelazo also works directly with property owners who are seeking to sell their home. To get started with selling your home, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Questions? Call 800.664.0616, x802.