OfflineSo my best-friend is moving from Virginia to Phoenix to join me in my real-estate affairs. We think we may have found 'THE' house for our first investment. As of right now it is in need of some minor upgrades & could be worth a fortune once the housing market goes back up to into a positive cycle. That being said, we are trying to figure out the best solution as far as payment is concerned. We are NOT going above $50k as far as selling price is concerned, but have assessed there to be approximately 10-20K necessary to bring the house back up to its original market value of $185K. I am in the process of figuring out ways to get the house inspected as I suspect water damage SOMEWHERE given the mildew-smell when I first entered, but regardless, need to know our best option as far as financing. Mortgages (from what IVE read) only cover the housing cost, not the repairs. Am I better off getting my investor into a standard loan & acquiring an additional 10-20K to improve the property, or acquiring a potentially more economical mortgage and finding the rest of the money for repairs along the way. We are also planning on moving into the property while it is being rehabilitated. My credit sucks, he has a 770. What do I do?
-=JB=-
"What!? NO! We can't stop here! This is bat country!"
If the numbers work you can come in with hard money for the purchase and rehab, and then do a refi on the property after the rehab is done to pay off the hard money loan.
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I think Eric has the right idea here. You might know that he really knows his REI and 2nd, he is my coach. He know his stuff. HML is the way to go unless the seller will take some money back for you. If you have equity, even sweeter. Then you walk away with some $$ at closing and paying off your HML to boot.....Now go learn and make money...Jan
I noticed you advised about HML and then doing a refi to pay off that HML loan. Now my question is, isn't it as a result of bad credit that many use HMLs? How would one with bad credit go about getting a conventional loan after HML loan? One of the things I don't understand is how one goes about paying back hard loans when most of those loans are within a 5 year plan.
Advice is always welcome,
Thanks
Jake, I found a lender in Phoenix, who will do a bridge loan for 100% plus repairs if numbers are right (sounds like yours are). This is a private money lender, who will do a short term loan with interest under 10% and costs of 2 points. He requires a credit score of 690 or above (sounds like your partner qualifies). They also prequalify you for a conventional loan which kicks in after bridge loan. This loan is based on appraisal. If LTV is 80% or less, you can get a 100% loan (nothing down). PM me if you would like contact info. Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
I am in the Dallas/Fort Worth area and will be locating forclosures and will need an Investor(s) to assign these properties. If anyone knows of an Investor please let me know it will be greatly appreciated.
Thanks!
HML's are NOT always loans associated with people having BAD credit, HML also used because of their ability to CLOSE QUICKLY(usually 1-2 weeks) versus conventional financing 3-4 weeks. Plus their lending requirments are more geared toward investors
YOUR HERO, SULLY
Hi Everyone,
I am in the Connecticut area, working with a REO agent I am trying to locate financing for my buyers. I need some leads on the mortgage companies or hard money lenders in this area or outside. Who will work with me to ensure the properties I assign will get purchase. If anyone knows of private lenders or bankers who still favor investors please let me know.
Thanks!
"I Can Do All Things Through Christ Who Strengthen Me."
Hey Terry, Here is a email address of a DG member and he does HML and new purchases. His name is Troy Judd, his email is troyj@gofrf.com. Let me know how it works for you..Jan
Thanks Jan,
I will email him tonight...
"I Can Do All Things Through Christ Who Strengthen Me."
and if all else fail,you can look into HUD`s 203k program for investors