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Author Topic: payments?  (Read 2812 times)

Offline focusonmoney

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payments?
« on: January 22, 2005, 07:02:14 pm »
When using a rehab loan, does the lender send you monthly payments or they wait until the rehab is done?
Real estate is one of the best fields to make money in. But like everything else, you will have to educate yourself to succeed and be the best.. Keep that in mind and your success level will grow tremendously..  www.pecs1.com

Offline tedjr

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Re:payments?
« Reply #1 on: January 22, 2005, 07:18:53 pm »
Howdy Focusonmoney:

My deals are done like this:

Rehab money is escrowed with title company.  I turn in draw request as the work is completed and the lender sends out appraiser/inspector to approve the request to make sure the work has been done. The lender then faxes a release to the title company and they funds are released and either wired to my account or a check is cut. Usually all this only takes 4 weeks, no just kidding, just a day or two.

My lender also advances some money up to $5000 with some pictures that demo has started. I bought a pic phone to help with this so I can email the pics to their email address. This is new to me but old hat to many. The newness has worn off a bit.

Anyway hope this helps explain the process a little.
Ted P. Stokely Jr

San Antonio, Texas

Offline focusonmoney

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Re:payments?
« Reply #2 on: January 22, 2005, 07:34:39 pm »
So while all of this is happening, are you still paying the mortgage payments every month or the payments start when you finish the rehab?
Real estate is one of the best fields to make money in. But like everything else, you will have to educate yourself to succeed and be the best.. Keep that in mind and your success level will grow tremendously..  www.pecs1.com

Offline tedjr

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Re:payments?
« Reply #3 on: January 22, 2005, 07:40:29 pm »
Howdy Focusonmoney:

If you borrow money you have to pay interest some time or the other and hard money is around 14%. High but better than a partner most of the time.  My HML allows me to pay 4 months up front and deduct it from the loan proceeds as long as the loan is not over 70% of the after appraised value. Actually he insists that the  3 to 4 months payments are paid up front. This is also the mininum interest earned even if paid off in a few weeks

HTH
Ted P. Stokely Jr

San Antonio, Texas

 




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