Are Equity Share Programs a Myth?

Financing, Hard Money Lenders, Private Money
1

I am trying to help a client make the purchase of a home more affordable.

Credit: Middle Score 592 ( pulled about a month ago)
Low 549
High 626

He is at the end of the buying process.

Purchase price $143,500
Apprasied July 2nd 2006 at $144,000

This will be his primary residence.

The house was built in 2004. The home Incpector told he there are a few minorthings but he would getting a well constructed home.

The property is located in the Brookfield Crossing/Glen subdivision in Pflugerville Texas.

Just started construction on a new Elem school about 2 blocks from the house. The Elem school will open next fall.

Chap 7 Bankruptcy discharged in November 2005

He has been with his current employeer (State of Texas) 18 months doing the same type work 13 years.

Regular Monthly paymets total $1,211
Current Rent $900 (same apartment 2 years)

Current Total Monthly $2111.00

Gross Monthly Income. $7020.00

I do not know anything about equity sharing or who participates in them.

Right now he is scheduled to close with a high rate 80/20 loan next Thursday.

I appreciate any guidance and advice you could offer me for my client.

Paul

2

It depends on the region:

I work in San Diego, in real estate. I can think of 3 equity-share programs off the top of my head and 3 other distinctive First-Time Buyer Programs.

Truth be told, many equity-share programs are exclusively for first-time buyers.

Unfortunately, too many lenders are ignorant of their local buyer-programs or equity-share. You’ll have to be fairly proactive in talking to lenders and “wholesale” lenders as well.

3

Truth be told, Equity share programs are for anyone at anytime and are certainly not limited to first-time buyers. My properties are made available through a land trust, combined with a triple net lease and equity sharing. Lenders often have nothing to do with it as I don’t require bank qualifying.

I recommend you read up on equity sharing and other methods of managing income property so you fully understand your options.

Da Wiz

4

mtn,

Can you recommend some reading on “equity sharing”? Also, is there any about real estate investing that you don’t know? I am always impressed with your depth of knowledge.