Why is Donald Trump complaining about lenders so much?
byApr 17th 2009 2:00PM
"The banks are not lending money, there's no money out there, no matter how strong you are, no matter how good your deal is, if you go to a bank today they virtually laugh at you if you're asking for money," he said. "They don't have money or they're hoarding money. . . The policy makers have to make the banks loan the money that they're giving to the banks. I don't know what they do with the money but they don't have any money to lend."
Now he's moved on to Larry King Live where he said that "this is a great time to buy real estate" (and also mentioned that he felt very honored to win Walletpop's poll on what celebrity people would most trust to do their taxes!)
Then he added this inexplicable statement:
And as far as financing is concerned, the only financing you should be thinking about is seller financing. If the seller won't give you financing, don't do it, because the banks are not doing their job. They're not providing financing for deals.Here's the truth: For people with good credit and an income that provides them with an ability to make loan payments, banks absolutely are lending. I know because I just got a mortgage. Seller financing is sometimes a good alternative for financing real estate deals but in this environment it's probably nuts: Very, very few sellers will give you a 30-year fixed rate mortgage and with rates this low, that's what most home buyers should be looking for.
And if you can't get a mortgage? Work hard, save up money for a down payment, and come back in six months or a couple years. Don't let the Donald make you feel hopeless just because his casino empire recently filed for bankruptcy.