I am partnering with a guy who has money so we can buy fix and sell or buy slightly distressed and sell w/o fixing if possible. I know there are many exit strategies for this but I want to get all of our money back right away to put into the next deals. (After I get my private lenders I will be selling on owner financing w/ 1 to 5 year balloon.) I heard about the 203k loan that gives buyers repair money. That is a good way for me to sell and not have to fix too much stuff. Are there any stipulatoins with this such as LTV or who can qualify? Could you tell me what other kinds of loan programs there are that could help cash me out right away and not limit my buyers too much?
As mentioned, the FHA 203K requires owner- occupancy. You must maintain the property as your principal residence within 60 days of signing the mortgage, with continued occupancy for at least one year.
Sorry, I must have worded something wrong. I mean I want to get cashed out from my buyers loan. I don’t want to personally guarantee any debt. What different types of loans can I get my buyers into that are easy to qualify for?
I have a similar situation. I have private mortgages on 4 homes at the present time. All are sold on the on a rent to own basis. I took 2000 down and from 500-800 rent per mo for a max of 2 yrs. I gave their information to a mortgage broker in the beginning to qualify them, so in 6 months to a year they can qualify for a standard FHA or Rural Development loan. We follow up every 3 months to make sure that it is going as planned. When these homes close at agreed on purchase price within the allotted time period, the lender gets paid with interest and I keep what is left. Then I will ask the lender if he wants to do it again. Currently on a program to do 1 per month. The key is marketing and follow up.
Redhawk