We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
June 23, 2021, 01:30:31 pm
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
June 23, 2021, 01:30:31 pm
Home Help Search Calendar Login Register

Author Topic: How to finance this deal? $40k Profit ;possible  (Read 5962 times)

Offline 205JUNKERScom

  • Member
  • *
  • Posts: 32
How to finance this deal? $40k Profit ;possible
« on: September 04, 2004, 01:35:07 pm »
Numbers:
Price: $155,000
ARV: $200,000
Repairs: $5000

Whe know we can purchase the house thru traditional lending but I don't want to run into seasoning issues on the resale?

What else can we do?

The seller wants cash because she knows she's giving up a lot of equity.


Offline tedjr

  • Member
  • *****
  • Posts: 2403
Re:How to finance this deal? $40k Profit ;possible
« Reply #1 on: September 05, 2004, 10:22:22 am »
Howdy Junker:

I would just suggest finding a lender that does not care about seasoning. and maybe use them to purchase the property and then again to sell to your buyer. Double commission and dicsount points for them. I have to use hard money at the current time but I would do it this way if I had better credit. There are  lenders that do not question seasoning at all

Ted P. Stokely Jr

San Antonio, Texas

Offline MannyMo

  • Member
  • *
  • Posts: 25
Re:How to finance this deal? $40k Profit ;possible
« Reply #2 on: December 07, 2004, 07:18:17 pm »
Hey Ted,

What is seasoning? How does one go about finding and dealing with Hard Money lenders?

Offline visionary

  • Member
  • *
  • Posts: 46
    • Visionary Real Estate Group
Re:How to finance this deal? $40k Profit ;possible
« Reply #3 on: December 07, 2004, 07:26:00 pm »
If I may...
Seasoning is a period of time before the lender will let you refi, some require 1 year (sometimes called green)and there are some that have no seasoning issues. hard money lenders are all over the place, check this web site for a list, call them and see what the requirments are. Do a google search also.
Daniel Dawson
www.visionisnow.com - Real estate investing products, foreclosure listings, articles and more!

Offline tedjr

  • Member
  • *****
  • Posts: 2403
Re:How to finance this deal? $40k Profit ;possible
« Reply #4 on: December 07, 2004, 07:35:44 pm »
Howdy MannyMo:

Seasoning refers to how long the owner has owned the property. Some lendrs are getting particular about how long the current owner has owned the property. If they see a profit they figure fraud must have some way been involved. If you rehab property keep receipts to help show  the fix up expenses and to prove why the property you bought for $10,000 is now worth $100,000. Just some off the wall numbers there.

A lot of hard money lenders are  listed here on this web site at this address: http://www.reiclub.com/hard-money-lenders.php

I do now know what you mean by dealing with them? Each one is different. Most want someone who has experience in doing deals and or construction. Most also want you to have some money (skin) in the deal, 5 to 10 % is about average. Some will escrow for repairs and some will not. The fees are about 3 to 5 points and rates ranging from 10 to 15 %.  Most are money brokers just arranging the  use of others money for the points. I like using a local  smaller company because they will tend to have a personal interest in you and the deals. I do not know much else to tell you at this time. Maye some more specific questions need to be asked?
Ted P. Stokely Jr

San Antonio, Texas

 




SMF 2.0.15 | SMF © 2017, Simple Machines