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Author Topic: Hard Money Loan with limited docs in Illinois  (Read 2508 times)

Offline zeekerette

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Hard Money Loan with limited docs in Illinois
« on: December 18, 2007, 11:50:42 am »
I am an investor and real estate agent and I have a client that is trying to obtain a rehab loan to purchase and refinance a 2 flat unit.  We are having problems finding a lender that can assist him.  His score is above 640 maybe even 680.  He has funds for the repairs.  I even found a bank to refinance him out of the loan after the rehab.

The problem is his work history.  He was on disability in 2005 and 2006.  Therefore he does not have tax returns for those years.  He is self-employed as of this year and can provide bank statements for proof of funds.  He will file taxes for 2007.  

Do you know any hard money lenders that will lend money in Chicago, Ilinois with the scenario described?  If you are a mortgage broker with any leads, please feel free to PM me.

Purchase price $190k.  After repaired value:  $280k.
This is his first rehab.


Offline Investment Loans

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Re: Hard Money Loan with limited docs in Illinois
« Reply #1 on: December 18, 2007, 05:59:51 pm »
Keep in mind that if the lender is going to base the loan off the ARV, that the rehab funds have to be put into the escrow account.  This means your client would need to part with his funds.   They would be given to him in draws as reimbursement of work completed and inspected.  This assures the lender that the funds for getting the property to desired ARV would always be available.

If your client does not want to put his money into escow account then he would need a hard money loan that is based on the as-is value.   He then would control the flow of the rehab as it'd not factored into the review process.

There are a couple lenders for IL but I dont have my list currently on me.   Will send you a list of questions that your client needs to send back so we can find him a lender.
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Ben Carmona * Consultant * ALL STATES * www.BenCarmona.com * 314-914-6052
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Offline REI4ROI

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Re: Hard Money Loan with limited docs in Illinois
« Reply #2 on: December 20, 2007, 07:38:30 pm »
Hey Z, I'm working on it...

Regards,

Scott Miller
RE Investment Advisor
Weichert Realtors
[email protected]

Offline 4R Management

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Re: Hard Money Loan with limited docs in Illinois
« Reply #3 on: January 17, 2008, 03:28:17 am »
I am just really curious about this one. Just because a person is on Disability does not mean they get to skip filing their taxes. Regardless of if this person gets the loan or not, they really need to file their taxes for those years.

Ryan D. Steele
Director, WCRT
"Success By Association"
http://www.WCRT.org

Offline zeekerette

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Re: Hard Money Loan with limited docs in Illinois
« Reply #4 on: January 17, 2008, 07:00:04 am »

Everyone is not required to file an income tax return.  He didn't have any verifiable income for the entire year.  I also went to the www.irs.gov site and if you are single, under the age of 65 and made less than $8,750 then you may not need to file taxes. You may need to still file when if you meet the following conditions at the following link.

http://www.irs.gov/individuals/article/0,,id=96623,00.html


 




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