Hard Money/ Financing Help.


Does anyone know what are the possibilities if any of obtaining 95% financing with low fico scores? This will be my second property, I bough a property one year ago, using a private lender, the property is now rented with a nice positive cash flow and good equity; however, I can’t touch the equity if I do so, I would have to pay a very high penalty. I will like to do the same if possible, buy a property, use it as a primary residence for about a year and then rented.

Any advice will be greatly appreciated.

Thank you
R. Diaz

Getting Financing is easier than ever

these ideas can be used with people that have good and bad credit credit

If you have a 500 score or better and you are buying an investment property but you don’t have 20-30% down this can be problem.

Well, to solve this issue you must get a loan at 70-80% ltv that allows a non-institutional loan( basically that means you can use seller financing) to equal 100% CLTV

So before you go into a contract you talk with the seller and ask them to carry a note for 20-30% down at x interst rate and y term.

If you want to finance the home to the FMV.
have a separate agreement that they will discount the note to you for xyz amount.(now you must have a dollar amount or this is considered lender fraud, with the dollar amount it is no different then a lender who does a short sale or a note buyer buying a note at a discount This works well if they are willing to walk away from that kind of equity any way.

Now this does not work if you are doing a short sale unless you put it in a land trust, because the lender does not want to see that the seller gets a cent.

If you want extra protection, have the seller put the home in a land trust BEFORE the sell of the property,and you and the seller(S) have beneficial interest

Another way is you get a property under contract use A HML to aquire the property. Then create a note selling it a partner or family member( this does not have to be an arms length transaction.) That has good credit of about 620 or greater. YOU WILL GET MORE FOR YOUR NOTE THEN. You can do this as a simutaneously close with the HML then turnaround and have the note sold and payoff the HML in the same transaction.

Now you better get a deep discount from your HML because his money is only going to be used for hours to weeks.

Some note buyers will fund the whole deal like a true simutaneous closing but most want you to have short ownership period of hours up to 90 days it just depends.

You can also get a Home Subject to and NO MONEY needed sometimes you will need some. to catch up past payments

This is all I have time for now.

This should help alot of you old and newb investors to try some creative financing

I’m using a similar technique on pretty homes in a hot appreciating market with one twist…

I give the seller close to retail price for the house if they will let me put a first mtg for 80% of which the proceeds will of course go to them… I get the seller to hold a 2nd mtg for the other 20% WITH NO PAYMENTS, just accruing interest… maybe I’ll give a single interest payment at the end of one year if I have to, and in any case I have it balloon in 2 years.

Seller gets close to full price, gets most of his money up front, and earns a nice return on the rest of it, backed by nice real estate in an appreciating market.

I get a property that will give me postitive cash flow while the property is appreciating. I refi or sell the property within two years and pay off the seller.

I’ve already gotten a few people to accept this. I will be closing on one of them within a few weeks hopefully.

That is Awesome Beachmaster, Way to go!!!

Yes always modify these techniques to your market.

If you have bad credit, you can partner with someone that has good credit he puts up the credit and you find the property and split the profits WIN/WIN

With low fico score you can obtain financing, especially since you are buying an owner occupied. A boker would use one score you help you get financing and would already know will give you finance to you doing by yourself. Because each lender would pull your credit. That affects your credit more
A broker would you the same credit report and kake sure they don’t pull another credit to qualify you.
And usually the right lenders for the borrowers.