Best way to finance foreclosure purchases?

I’m guessing its just have your own cash on hand? Seems like it would eliminate alot of leg work with banks, etc…

Can you guys give me some things to worry about when financing with 100% cash on hand? When I come back from this Kuwait contract gig I want to make the right move. Thank you!


Leg work?..Leg work! BUCK UP SOLDIER! ASK A STRAIGHT QUESTION ! Drop and give me 200…


Allow me to clarify…

Upon my return to the states I will be jobless. From what I can gather, it is impossible to get a loan from a bank with no job, even if you have say… 60-80k cash on hand. So In my underdeveloped real estate investor mind, I’m thinking it would be better for me stay in Kuwait until I had enough cash on my own (180-200k) to finance purchases.

Another thing I"m confused with… Lets say an investor finds a 500k 10 unit building that is fully occupied, and nets a positve annual return of 50k… Lets say this investor is JOBLESS but has about 80k to put on a down payment.

Would banks loan this guy the money if he put 80k and proved through hard, historical data that this thing would pay for itself?

Hope to hear from you guys!


It appears all those pushups did you good,
If you currently have 60-80k to put down on a property it is Highly likely you could purchase a SFR priced in the 180-240k price range using a no doc loan. You still have to make the payments and depending on credit scores you make also get away with no income verification.
You may be better off than you think.

Take Your 500k question and move it to the financing, hard money forum, There are a couple guys there that seem to be on top of things. You may have to share some private info w/them offline but with your numbers you may have a pretty good chance.
Thanks for your time, Darin

Ask for owner financing.

Take the property subject to if there is good lending terms on the property .Otherwise use hard money if you are going to flip and there is good equity or possible lease option if it is not too bad of lending and you can make up the spread on the back end.

Since you plan on being jobless, I would like to offer you 2 options you can do now to help you along in buying real estate when you return.

Option 1. Go open up a corporation now. Once your corp is 2 yrs old ,you can use that as a self employeed business owner and obtain financing using a stated loan even if there is no income but still file taxes each year. When you have a business, all you need is your CPA to type a letter stating you have a 2yr old company when it becomes 2 yrs old and the broker will state the necessary income.

Option 2. You can actually buy a shelf corp that is 2+yrs old. There are companies on the internet that sell them, some will even come with credit lines, credit references, etc. This can be the shortcut to option 1 for financing methods. Remember people sell businesses all the time, just some have no activitiy and you can even change the business name if you like. Just do not have your name associated with the business.

As for loans with no income. You need a NO DOC loan. Credit score will have to be high, with todays guidelines, probably 720 FICO, maybe some guys doing it with 700 FICO. a 10% downpayment will make life easier on the loan as well…

join your local reia
talk to other re investors
Find out who are private money lenders
find out who are hard money lenders
Find out if somebody wants to partner with you on the deal

This is great advice!! :biggrin
So if I understand correctly, I don’t have to wait 2 years. I can go and pay the additional amount for a shelf corp, and it will be as if I owned the corporation for 2 years and filed taxes?

Are there drawbacks to this?
If the corporation has been inactive for 2 years, how does it carry any weight?
Wouldn’t a mortgage lender see this as being “weak”?
Will this really help someone who is self-employed get a loan?


anyone have a response for my last post ?

:cool I have been purchasing foreclosures for years and know of a couple of guys that will finance almost any foreclosure all over the United States. The last few I bought with $1000.00 down paying $600.00 a month on a 15 year note. These guys buy 100’s of properties all over the United States and then sell them to investors or homeowners. This has made a lot of money for me!