OfflineI went to make my written offer today on a home w/ a long term renter (14 years), My partner (I met here on DG) is putting up the downpayment, or was, until we were told we need 25% and not the typical 5% I thought. I really dont want this deal to fall through and I need suggestions on how to get the rest funded. The current owner is not willing to finance any of this so that is not an option. I am sure someone here has a great way to make this work.... need suggestions.
Thanks everyone.
Kevin
Ps... How is it everyone else is doing 5% and everything is working for them?
Help please.
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SHORT TERM & Long Term GOALS
Expand my knowledge about REI and read 2 more books.
Never Give up and Succeed!
It depends upon the lender. It is not uncommon right now for lenders to require this. It could be that your credit or lack of a track record could have caused the lender to require this.
I am fast becoming a nationwide expert on transactional funding also known as flash funding. That could work for you if the end buyer you have lined up could show proof of being approved for financing or has funds to buy and would be able to take part in a double closing.
Hope this helps.
Jimmybtx,
I am the buyer.
Kevin
SHORT TERM & Long Term GOALS
Expand my knowledge about REI and read 2 more books.
Never Give up and Succeed!
1. Bring on another partner(s) to split the downpayment. You may have to take less,......actually you will take less, otherwise it wouldn't be appealing to them if after all that you have equal shares. If you bring in another partner, offer a 40/40/20(you) split.
2. Walk away. Its not the Vatican or Empire State Building so you're not missing something you never had. Find another deal. Never think of a house as a "I WILL DIE IF I DON'T GET THIS" type of thing; all it is is metal, sheetrock and glass.
Hope it helps
It sounds like the seller is a private individual, not a bank. If this is the case, unfortunately there's not much you can do, except find a partner that has the cash balance. I know that we have offered owner financing on some of the houses we were selling, but required at least 20% down. This would give us enough cushion in case we had to foreclose & fix up the property again. Gary/Jill
elixbrown,
Thanks for the comments. I am not being defeated. I realized a few weeks ago that if this deal doesnt work then the next one will, its a learning process and I am learning so much that in the future I will look back on this and be more appreciative of how much I learned because it didnt come as easy as I had hoped.
I got into a arguement with my dad last night because he said that I was going to get into trouble for trying to do real estate investing becuase I need a License to do it. I hate the fact that people who have no idea what they are talking about can offer advice. He is one of those people.
So I am making my signature with my Short and Long term goals...
Short Term Goals-
Buy 2 properties within 90 Days.
Expand my knowledge about REI and read 2 more books.
Not Give up!
Long Term Goals-
Suceed!
Buy 20 homes by my 1 year anniversary of buying Deans books. (06/09/2010)
Show everyone I meet that this can be done.
I am glad these forums are here for help and support!
Kevin
SHORT TERM & Long Term GOALS
Expand my knowledge about REI and read 2 more books.
Never Give up and Succeed!
Gary / Jill,
This isn't a bad thing neccessarily but just a minor set back. I was just floored that I had not heard anyone have this sort of issue since I have been on these forums, let alone find out while I was driving to the realtors office to sign my offer letter. If this deal falls through then I am ok with that, there are others out there and I will just to find more deals that are owner financing. Either way it happens I am ok.
I do appreciate your comments and suggestions / advice.
Kevin
SHORT TERM & Long Term GOALS
Expand my knowledge about REI and read 2 more books.
Never Give up and Succeed!
when people doubt you or try to convince them otherwise. Let them stay ignorant; more money for you and less wasted space all around
Just look at them and give them a sarcastic half-smile that says
"you dumb %$#^ I cannot wait until I get a few checks in my bank account and make copies of them and frame them on my wall and invite you over so you can see them without me mentioning it to you. And then i'll take you out for a steak dinner and in small talk mention how I did some deals and who better to celebrate with than you..."
Put the smile back on after you say that for a longer lasting effect
elixbrown,
Thanks for the good laugh, my co-workers are probably wondering right now what I am giggling about. Way to funny and I appreciate it.
When I do do this I am going to post his reaction. Lets see if your right.
Kevin
SHORT TERM & Long Term GOALS
Expand my knowledge about REI and read 2 more books.
Never Give up and Succeed!
I am new to this site and new to real estate investing. I have been self employeed most of my life and I have run across alot of successful people and alot of dirt poor people. For some reason or another most of them are very happy in their own ways. What I also have found out is that most of the middle class people (or what I consider middle class)all are so opinionated about everything and everyone, it is like they get off on seeing people fail. These people can never give you hope, only they hope to see you fall flat on your face, so they can tell you I told you so. Something I live by: We all learn to do things we never knew how -- Learn how to CRAWL ( you fell,but you got back up) WALK ( you fell, but you got back up) RUN ( you fell, but you got back up). What is the diffrence between this analogy and investing (NOTHING)so what if you fall,it's going to happen, GET UP AND DUST YOURSELF OFF,AND THEN THINK OF WHAT MADE YOU FALL,AND TRY NOT TO DO THAT AGAIN.Making mistakes is what makes us strong, if you don't make mistakes and learn from them,how will you learn.This is what seperates U from everyone else!!!!!!!!!
One day your ship will come in,YEAH RIGHT, I can see mine so I am swimming to it!!!!!!!!!!!!
This site is GREAT, MY best to everyone!!