Real Estate Investing Forums

Real Estate Investing => Financing, Hard Money Lenders, Private Money => Topic started by: camilomachado on January 03, 2007, 11:42:13 am

Title: Ideas for getting out of HM Loan?
Post by: camilomachado on January 03, 2007, 11:42:13 am
Hello,

Just spoke to my broker regarding a deal where I would take out a hard money loan. He is advising me that I will have a hard time refinancing out of the HM loan 3 months later because the assignment fee I am paying for the house is too high.

House was bought at foreclosure auction for $14,650 and investor wants $12,350 assignment fee. I'm purchasing for $27K and ARV is coming in at $50K-$55K. Broker is telling me that banks will look at the money the wholesaler is making — $12K — and they won't refinance the house even if I keep it because they would view the chain of title and consider it flipping.

Anyone have any ideas of how I can get around this? The property is a good deal and I can get money to finance, but I can't run the risk of getting stuck on a HM loan for up to a year.
Title: Re:Ideas for getting out of HM Loan?
Post by: dwj469 on January 03, 2007, 12:36:35 pm
I am not sure about this one. In my opinion I dont really see why it matters to the bank how much anybody made on the property as long as there is ample equity in it to make it a worthwhile investment. I know of some banks that will refi the day after you are on title and a lot of others that will refi 3 months after. Find a broker that works with banks that do this.