OfflineI have recently finished 2 of Dean's Books. Profit from Real Estate Right Now and Be a Real Estate Millionaire. It has really motivated me and captured my interest even deeper into Real Estate. Now, I am a Bar Manager at a local sports bar. I enjoy it and is a great place for networking. I have met with a broker who is interested in working with me. He is already backed by an appraiser and title agent who are also interesting in working with me.
With that, I am on stated income with o.k. credit. My broker told me it is very hard (not impossible) but very hard to get a loan with stated income considering that's how we got into this economic mess anyway. Now, I've been at my job for 4 years. So I'm hoping my years there will maybe over look stated income. I have found a beautiful condo in a great area. The seller is very motivated because she is a medical student and is being transferred. I believe this a great opportunity to snatch this place up at a very low price. Along with that, it is a desirable area for renting to the local medical students which my girlfriend has access of posting and emailing 300 potential renters at a single click of the mouse. Her father is interested in investing with me, but I do still feel weird about using his money. I wouldn't mind him lending me a down payment with a percentage back, but I'm trying to come up with other options for acquiring this condo.
So with that said, my main question is do I keep pushing my broker to find me that loan? Can I do a contract deal with an "assignee" clause? And with the local rental rates, the beautiful condition this condo is in, and what my rate would be I would defiantly be making it a cash flow if the seller and I found common ground. So how can I use that to my advantage as far as financing?
Thank you for your help and feedback. Still feeling a little fearful, but wanting to move on and make the move. Thank you again.
Chris
Stated Income
Posted on: Mon, 03/30/2009 - 18:17
Stated Income
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- by Chris Unger
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Here are some ideas:
1) FHA - they will do stated. It is a little harder but can be done.
2) Use your father in law. Purchase the property then refinance. You will find that refinancing is easier to do than an actual purchase.
3) Get the seller to finance the deal. - Seller financing, wrap around mortgage, subject to purchase.
If you get the purchase low enough you could assign the contract but it sounds like you are trying to rent the property.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thank you for your reply. I like the idea of using my father in law to help towards a down payment and using FHA. I'm not sure I totally understand refi though. I hear about not having to wait for seasoning, but even with a mortgage on the condo i can still refi shorty after purchase? Does Dean have a book or a search site to further understand refi that you know of? Thanks for helping a new-be.
The refinance that you would be looking for is often called a "no-seasoned" refinance. You would want to contact a mortgage broker for this information. These loans do exist. It may take you a few calls but you may be able to find this refinance and even find one that will work from the equity of the property.
The reason I offered a refinance option is because of the comfort ability with your father in law. How the refinance would work is you would purchase the money (the finance) with your father in law then once you own the property you re-finance.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
nstreet:
Can you please explain the wrap around mortgage in some detail? I have read about it and saw a post by Anita, but not quite sure I understand it completely.
Thanks in advance.
yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
A wrap around mortgage is when you purchase the property and the seller gives you seller financing for all or most of the purchase but does pay off or get rid of their (the sellers) original mortgage. The seller financing wraps the original mortgage.
Seller owes $100,000.
You Purchase for $105,000
You pay the seller $629.53 per month. The seller then pays the original bank $599.55 then pockets the $29.98 difference.
Usually your payments of $629.53 is paid to an escrow which then distributes the amounts.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thanks, nstreet!
Now I get it. Can't believe I didn't understand that before.
Yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Sure thing. This often talked about but usually needs a fuller explanation. If you do a search you can probably find more information about this subject. There is more information that I did not include such as using a real estate trust to complete the transaction and so on. Have fun.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125