creative financing

When using creative financing to purchase commercial property(apartment buildings,Mobile home parks),when does the bank want to see proof of funds and can proof of funds be paid after the close of escrow through a buyers repair credit?

All banks want to see verified proof of funds before you get to the table.

Ok,my problem is that i don,t have the money to pay the fee’s up front to a transactional funding soure.I’m trying to figure out how i can pay the fee’s through ecrow.Both proof of funds and wet funds,transactional funds,etc.The buyer is willing to do some owner financingand i need to show some skin in the game.Can anyone help me get past this point

I want to keep the property for long term investment.This is a moble home park.

who is the contact person and number.

conventional lending or hard money

conventional lending

when purcashsing a mobile home park do the conventional lenders look at park owned homes as a value to the park on apraisal value?I was told that most lenders don’t like a lot of park owned homes.

If the park own the homes we will look at homes and land. Did you have a park in mine you wanting to purchase?

yes,i’ve looked at several.I’m a new investor and i’ve heard different stories about the way lenders look at MHP

As a new investor you will need 20% cash down, closing cost, and appraisal fee. And most lenders will not let the seller pay any of the down payment or carry a second.

so creative financing will not work for new investors?

Creative financing will work as long as you are not trying to do 100% because you have nothing to lose.

ok.I was looking to do about 20%-25% creative financing and 75%-80% conventional lending.When using creative financing will the bank let you show proof of funds,down payment on the day you close escrow?

The 20% to 25% will need to go through transactional funding and the bank want to see that to get to the table. Transactional funder charge 3% to 4% out of escrow.

I’m trying to find out how to pay for transactional funds,wet funds,proof of funds,etc. through a buyers repair credit on the day to close escrow.the fee’s for these transactions will also be included in the buyers repair credit.Of couse the seller and i will have agreed to do this before we go into escrow and or close.

Once you lock in the deal with the seller any transactional funder will need the seller to put the transactional funder fee in escrow just in case the deal does not closed the transactional funder is cover for providing a service.

the bank will want to see the 20-25% you are putting up in your account, and if it hasn’t sat in that account 60 days, they will want to know exactly where it came from.

Banks want you to have CASH in the deal, not money advanced from credit cards, etc, I normally have to go in and explain every deposit for the last 60 days,and if it something unusual, like I sold a classic car, they wanted to see the title of the car, bill of sale, it was a real headache,

All transactional funding we do is from seasonal accounts and the banks will get what they need from out escrow.

lenders I have worked with want me to show the money, in an account in my name, and show its been there for 60 days.

I’ve always understood transactional funding to be funding for a wholesale type deal, where it was just used to get the first close done to do the second close immediately after,there was no long term use of money (I use hard money all the time, but don’t wholesale so don’t deal in this type of transaction)

In a case like this are you using the transactional funding just to fool the bank that the buyer has the funds, but actually has a deal with the seller for a second position for the down payment?
If so and the bank ever finds out (of course as long as you make the payments they probable would never find out),they could show fraud,