OfflineSo, who says I have to wait for my cash out refi to do a deal??? If you saw it, you'll remember I posted about a deal I wanted to partner with someone because its a great deal in my area! I had 3 interested partners and when it came down to it, all 3 couldn't swing $95K. I've been working on this property since MARCH, but each time it falls out of escrow (twice with a wholesaler who didn't know what he was doing, and another retail FHA buyer that couldn't qualify due to having their own business), its been bad timing (see below why). So, here's what I did.
I put the offer in anyways. I offered $45K more than I want to pay. Then, I asked for $45K back at closing for repairs. I did this by building a good relationship with the listing agent, and then making sure he gets both sides of the commission. 
***THE OFFER WAS ACCEPTED !!!!!!!!!!!!!!!!!!!!!!!!!!!!***
Now, the stumbling block I'm having is HMLers out here. They don't like the $45K not being 'my own money' and still want me to front at least $20K 'skin' in the game. There's plenty room in this house for doing this, so I used Nathan Street's 20 questions method and thought 'well, how about I ask for more than I want to pay...' and waalaa, a crazy idea was born. 
And now, that crazy idea is a REALITY!!!
The only thing about this deal is the timing is HORRIBLE. And, I may STILL need a partner on the deal. But, it won't need to be as much money, because I'm getting the $45K out of the purchase price. But, I wanted to post this because NOTHING is impossible and building a rapport with the listing agent (and REO agents in general) can really work to your benefit! NOWWWW..... the timing issue.
As many of you know, I've been viciously looking for someone to refi me out of my last HML deal that I held because the cashflow is $700/month (once refi'd).
What I didn't anticipate was the problem right now with financing. Banks just WON'T lend unless you don't need the money! This was a 5th financed property for me, so MOST banks, whether portfolio lenders, credit unions, direct lenders (and don't even mention regular banks!) all have ridiculous requirements when you surpass 4 properties, as well as not counting any rent on the 5th property until there's 2 years of tax returns on it. Long story short, I've worked with literally over 100 lenders, and have FINALLY found one, (don't want to get too optimistic until I get the papers!) Had my hopes up too many times!)
So, I can't withdraw anything from my accounts right now until this refi goes through. So, if you're interested in partnering, here's the updated info on this property. 
I have it under contract in a trust, so I can add a partner as a beneficiary.
brilliant strategy Tammy! So very proud of you!
AND for perseverence!!! Most would have quit long before every getting to the 101 call to finally get a yes on a lender.
That's precisely why you keep getting the success you have because you do what you do!
God bless,
Jen
I must have talked to well over 700 banks, brokers, lenders, credit unions and direct lenders! I only submitted my paperwork to over 100 of them that needed to see all my info to determine. I've had my credit run over 20 times in 6 months! But, it is CRRAZZZZYYY out there and good credit didn't help me for nothing!!
(I sent out letters to the credit bureaus to have the inquiries removed).
But, what an ADVENTURE!
Now, trying to find a HML that is ok with me not coming to the table with anything of my own. So challenging here in CA!!!
Thanks Jen, and yes, for anyone reading, you definitely can NEVER GIVE UP! It may take you some time, you may have to try things 100s of times, but persistence WILL pay off int he end!
AND for perseverence!!! Most would have quit long before every getting to the 101 call to finally get a yes on a lender.
That's precisely why you keep getting the success you have because you do what you do!
God bless,
Jen
Awesome job!! You always come up with different strategies that are always so effective. Great job!!
Ryan
100, 700, 7000.....whatever it takes right! just details, part of it.
for the record, to heck with thinking outside the box.....I say WHAT BOX? lol
Seriously Great job Tammy!
Jen
Way to go Tammy on getting this figured out, so your PA with the seller clearly states 45k cash back at closing? I bet if you asked 10 RE agents if what you are doing is possible all 10 would say no you can't do it. You are amazing.
Now I was a little unclear on your above post, are you looking for 20k or 95k from your partner?
Keep it going Tammy I so love reading your posts!
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
I'm looking for about a 10-20K from a partner to invest on this deal!
Ends up being all I'll need 
Of course, it won't be a 50/50 split, but I will work out something that will be beneficial! 
Jen, yep, what box? I've never been much of a conformer to anything!
Ryan, thanks, being creative is part of what makes it work in this market.
I can just see you... brainstorming all through the night... you never stop until you find every possible solution there is to your 'issue'.
Tammy=Perserverance
I don't think I know anymore more perserverant than you!!
Can't wait to hear about the way this deal closes!
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
If there's a will, there's a way. I think you know one more person just as persistent. His name's Dean, and then there's Matt, and then there's Joe, and then there's Rina, and then there's Carol... and then there's YOU!
. 
with HMLers accepting this. They still want me to front at least $45K. SO FRUSTRATING! I have a partner though!
I just read your post and that's awesome and very encouraging. You Didn't give up and hung right in there. I'm new to the DG fam and I know it will all work great for me. Any advice for a newb like myself?
I'm new to the DG forum, but not new to RE investing. Like you, I tend to approach most deals with a lot of out-of-the-box thinking.
Have you considered approaching a commercial lender to refinance the properties (for which you have conventional mortgages) along with this property under a commercial blanket loan? BTW, if you opt to do this, then you'd want to also negotiate some kind of partial release schedule (in case you'd like to sell off any of those properties individually).
I have actually looked into that, but the interest rates would be so much higher than what I'm paying on many of the properties. DO you have a lender that does this?
Serv, congrats on making the choice to become a REI! This is a great decision. My best advice is that this is not a get rich quick scheme. There will be many deals that fall away, not so moral people that will attempt to steal your deals, and it is pretty cutthroat. That being said, stay determined and don't let anyone or anything stand in your way. The most important thing to survival in this business and getting up each time you fall, wiping away the dirt, tell yourself all you learned from the experience and get up and do it again! Persistence and perseverance will take you far.
Now, that being said; this deal was contingent upon a hard money lender approving the $45K. The hard money lenders around here frowned upon that. But, in calling hard money lenders, I have to give my full prospectus of the property to the hard money lenders, which I do not like to do at all unless its completely locked up. I believe in doing so, one of the hard money lender said to another investor of there's ' hey, here's a great deal' and gave it away. So, there is now another offer contending and they are offering full price with an actual bank account with money in it. I did get another partner but it was late Friday, so today I wait for the results.
But, there is no way for me to ever prove that my deal was given to other investors, but the timing sure is suspicious. This industry IS cutthroat. Now, I go off and re-prepare a prospectus for yet another property that I am now looking for. That deal was a deal I had my radar on since March; each time it got put under contract; twice by wholesalers who didn't know what they were doing, and the last one was an FHA buyer that couldn't qualify in the end. This was my opportunity and because they APPROVED the offer but wouldn't sign until a HML approved of the $45K, I lost out even though I brought in a partner at the end. Sometimes you have to do things you really don't want to do, but if you don't do them, you lose the deal. The last thing that I want to do is broadcast an address to HML without a signed, but approved, offer.
Onto the newt!
Hi Tammy,
this is such an awesome strategy. I am wondering if it works for an REO that is a Fannie Mae prop that has been listed for 56 days? I am submitting an offer with a cash back request today. Not sure how it will work, but as I told the RE agent, submit the offer and let them say no and walk away from the table, or counter us back. BTW, I am a Newbie and this will be my first offer as a DGer.
Peace!
Tammy, you are using all the tools in the shed to get the job done! I read that strategy dealing with commercial property. It is always great to see someone experience the theory!
Owner is walking away. With mortgage of $800,000+, and 44 vacant apartment units, they are throwing in the towel.
If you have $150K, you can buy the note and foreclose! If you know how to rent out 44 units in a depressed market, it's all cashflow from there...
So far, no one will touch this!
Please let me know if you can help!
REOguy2000
Also without using a RE attorney? Who pays commissions to whom for what and how much if you use a RE agent and a attorney? While studing Dean's book I
have not come across an answer to these questions.
I found no answers to the question I asked. Will someone answer this question
for me. Thanks
As long as you can assign your contract (there must be the proper wording), than you should be able to assign the contract to anyone that can legally fulfill that contract. The buyer is just buying the right to take your place at the closing table.
The more thorough the question, the more thorough the answer.
Please fill out your profile with as much info as you're comfortable with.
Thanks.