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Author Topic: Assignment financing?  (Read 1586 times)

Offline Markw

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Assignment financing?
« on: June 29, 2005, 03:16:34 pm »
I would like to assign, or wholesale a few properties in the next couple months to pay off my credit cards, car, and save a little for doing my own rehab.

Whats going to be the best choice for financing in the event I cannot find a buyer to assign the contract to before closing?  

I can get a 10% down, interest only loan (if I approve) from my bank lender (same company I financed my primary residence with and have no late payments)

What do I need up front before I make an offer (and be confident I can buy the house if I cant assign it)?  Is there a way to be certain you will get a loan before you acually get it?  When I got my last loan I had to write a letter regarding each late payment hit on my report, of course I didn't find out til half way to closing.

I don't have the 10% to put down, so that loans not a very good option anyways.  I have very little money to put twords carrying the home (which is why I'm waiting to rehab in the first place).

Whats my best source of funds in the event I need to close in 14 days, but don't find a buyer for 30?  Is there a problem with paying off a loan a month after you get it?

Some will say if you can't find a buyer then its not a god deal, while I'm sure thats true for the most part, I'm sure there are also exceptions.  Can I get a HML in the works as a "what if" clause?

I'd assume if I can't wholesale the house in 3 months then something is wrong, and I am likely to lose money, but whats my best option for this situation?

Offline richmortgagebroker

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Re:Assignment financing?
« Reply #1 on: July 01, 2005, 02:51:24 am »
I would like to assign, or wholesale a few properties in the next couple months to pay off my credit cards, car, and save a little for doing my own rehab.

Whats going to be the best choice for financing in the event I cannot find a buyer to assign the contract to before closing?

I can get a 10% down, interest only loan (if I approve) from my bank lender (same company I financed my primary residence with and have no late payments)

You may be able to qualify for a higher LTV if you want to  or keep the 90% approval jsut as a worse case scenerio

What do I need up front before I make an offer (and be confident I can buy the house if I cant assign it)?

Put your funding in place either with a HML or a traditional Loan

 Is there a way to be certain you will get a loan before you acually get it?  

Well techically no and you can have a pretty great idea if your loan broker is experienced then you can have a good self assurance that it will close



When I got my last loan I had to write a letter regarding each late payment hit on my report, of course I didn't find out til half way to closing.


That can happen
 it can also be that the processor though she had it and/or the underwriter wanted it at the last minute. This happens with all kinds of different conditions  you don't have to feel that this is odd LOL ;D



I don't have the 10% to put down, so that loans not a very good option anyways.  I have very little money to put twords carrying the home (which is why I'm waiting to rehab in the first place).

If there is equity in the house you can do a seller finance or a Grant both work great to get you in the house

Whats my best source of funds in the event I need to close in 14 days, but don't find a buyer for 30?

Well I would have your traditional loans inunderwriting just waiting for appraisal and/or title just in case

Or you can use HML which is more expensive


 Is there a problem with paying off a loan a month after you get it?

only if you have a prepayment penalty or a 90 day seasoning if you are going to sell it to an FHA buyer


Some will say if you can't find a buyer then its not a god deal, while I'm sure thats true for the most part, I'm sure there are also exceptions.  Can I get a HML in the works as a "what if" clause?

Yes and I would alos get a traditional in line too

I'd assume if I can't wholesale the house in 3 months then something is wrong, and I am likely to lose money, but whats my best option for this situation?

Well there are always risks you just have to calculate them

Like if you can't sell in 3 mo then LO or seller finance or fire sale it or jsu be more creative on your terms like pay for clsoing coast ofr seller subordinations just for examples


Craig and Laura Richins
National Loan Brokers
866-582- 4451 EXT 6743  Office
www.loans2investors.brokersme.com

Offline Markw

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Re:Assignment financing?
« Reply #2 on: July 01, 2005, 04:13:34 pm »
Thanks for the excellent reply.  I hope to make an offer on something by the end of July, I don't want to make offers I can't back up, and I don't want to make offers I'll lose money on! lol

My next step is to acually talk with some HML and my regular bank broker, then figure out how much all the closings etc will cost, assuming I end up having to do them.

Offline richmortgagebroker

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Re:Assignment financing?
« Reply #3 on: July 01, 2005, 06:52:02 pm »
Great Idea

 You always want to have Calculated risks and costs and that is to not go into it blindly either.
Craig and Laura Richins
National Loan Brokers
866-582- 4451 EXT 6743  Office
www.loans2investors.brokersme.com

 




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