i am a novice real estate investor. my father is a real estate broker here in san antonio texas, and he works people facing foreclosure so he comes across a lot of deals. he just got a short sale approved for 98k on a house with a arv of 155k. the home is only 5yrs old and needs 5k in repairs. i would love to buy the home however i don’t have money for downpayment. my credit score is in the 700’s but like i said i have no money. i’ve talked to a few hml but they all require a downpayment. is there a way to obtain deals like these with little to no money??
There was a company I used in the past for my short sale deals. They would review the short sale and pending approval would fund the purchase at the short sale price. They had no up front fees, in return they received between 25% & 50% of the proceeds of the short sale. This basically made them partners with whoever was doing the short sale.
They did do a strict due diligence to ensure I wasn’t a con man trying to rip them off. They also maintained control of the title company to ensure there was no fraud going on with the deal and that their funds were properly appropriated. I remember their main concern being the exit strategy. They do this as a short term investment, obviously the shorter the better. Already having an end buyer lined up and under contract (pending the short sale of course) greatly increased their desire to fund the deal ten folds.
I’m not sure if the company is still doing this or not, I’ll check with them this week to see.
Does the house need repairs? There are lenders in Texas that will go to 85% ARV for rehabs. This would get you to 131,750. If you coukld get the seller to cover closing costs you could make it work.
I just got off the phone with one of the guys with that company. He said they ARE still funding short sale projects.
Foreclosure,
There are no restrictions on what type of sale can be funded by a conventional loan. Shorts sales are no problem to close. I think the problem the OP is having is finding the funds to get the deal to the table. The main thing is if the property will be owner-occupied or NOO.
Forclosure Nego. could you please PM me with information on the company that you are talking about. Thank you in advance.
Not a problem, Give Denis a call at: 216.544.4779
Good Luck! :beer