I am new at this invetsing thing and have broken over most of the barriers of it except for the main and final barrier of finding lending.
I have read alot of the investor forums and learned quickly, but I still need financing. I have chose the multi-million dollar sfr’ area and am running into not enough income or what not to buy the house from even the creative traditional lenders.
So I am looking at private investing. I have about 5-9 multi-million dollar homes that don’t need rehabbed, but instead I have a distressed seller that is willing to sell at a fair to large discount below value. I am working on investors that will buy the homes from me. I also want to pull some of the equity out of the home when I buy it.
Are there any private investors out there that work with larger amounts and are willing to lend on the appraised value and not the purchase price? If so contact me at firstname.lastname@example.org or 304-279-3461.
Since you have already done all the homework on knowing that these homes are a ‘deal’ can you list what the ARV and sales prices are so we can know what kind of discount you are getting? Also knowing how long a home stays on the market when listed for sale would be VERY important since you would need to cover all holding costs.
There is ALWAYS someone willing to lend money on a good deal. I just wanted to make sure you really HAD a deal and if not, that would be why financing would be hard to get on it.
I hear what you are saying.
All of these homes are not rehabs. That was initially what I had set out to get and have been flooded with so many that I can pick and choose.
The ones I have chosen are in good shape the seller is just distressed due to death in the family, other investment not working, divorce and a few other things.
1st prop- appraised value= $2 Mill and asking $1.1
2nd - app v.= $5 mill asking $3.7
3rd - $4.75 asking $3.1
4th - $6.2 asking $4
5th- $12 mill asking $7.5
I have quite a few more I can list. I need a lender that will get me on my feet and then I will be able to get these loans through other ways besides HML after I do about 4-10
What State are the properties in? Why isn’t the owner just listing these and selling on market. Why are they willing to leave soooo much on the table—by selling to you??
How is your credit?? Are you going to be able to do these. Don’t forget holding costs. A little creative finance could work. You will want to verify your assumptions as to fair market value on these.
My credit is 675.
The owners have contacted me due to my contacts being in the right place at the right time.
I don’t know your background or experience with real estate, but you do know that when dealing with high dollar properties such as these that the appraised value is usually not what someone is actually wanting to pay for them. And if there is such a person wanting to pay that amount it takes more than 30 days let alone a few months for a property like that to move.
Then again maybe the contacts that you have put you in with the types of people that actually live in multi million dollar homes. If this is the case you should find plenty of willing money investors within that group of people.
I agree with Abel, these deals sound good–but be careful if you don’t have a lot of experience. Get 5-6 (sold) MLS comparisons from an appraiser near the subject properties. Once you have that you can structure the purchases. I hope you have some real estate experience–these could be very difficult. I have 25 years of residential and commerical ownership/lending–and they would concern me!!!
May want to struture with seller leasing back property for a period of time (for cash flow) during holding period. Build it into the purchase agreement. Also a seller 2nd.
Some programs will allow a direct offset to PITI so your Debt ratio is not a problem.
I know this sounds crazy, but the people I am working with are wanting cash back at closing. I know for sure they have a middle score of 675.
Is there any whay to get them cash back at closing? I see people making loans all day for rehabs at After Repair Value and these houses need little if any repairs maybe here and there, but for the most part they are in good shape, but the buyers still want money back. Is this possible?