I am looking at a deal right now that is almost jaw dropping. It is a duplex with a single family all on the same lot. Purchase price is $34k needs $30k in rehab and comps out a $160k.The problem is that I cannot get financing because of a judgement on my credit report.Is there a way around this? I dont plan on keeping the property I am just looking to fix and flip. Is there still any equity partners out there? I need to get this right away before it is gone. The proprty is in Cleveland Ohio In a pretty good area,alot of rehabbing going on. Please if anyone has any sugjestions let me know.
Well if you wanted to you could cosign with a relative on the loan to get approved. Once approved, have the relative quitclaim all interest in the property so you are the sole owner. Usually the lender has the RIGHT to cancel the loan if they find out, but the odds are they never will and thus never will exercise this right. I’ve never tried this but I have heard of people doing it with success. :biggrin
You’re at 40% of ARV, time to start calling HMLs, I don’t think many would pass up a deal like this if your numbers are right.
I have called numorous hard money lenders and I have had no results.My Credit is pretty bad and that is part of my purpose of trying to do these deals that I find.I really dont think there is any such thing as a true HML any more.It used to be that HML’s would work with the ARV only and not look at the credit and I just cant seem to find that anymore.back then I was young and scared and now I am seasoned and motivated.The credit is why I added maybe a partner to the heading on this post.Any sugestions?
Most hard money lenders that do rehab loans based upon the arv have always checked credit. Not so much looking at score but rather your history of paying people back. However, HML that only base the loan on the as-is value with no fix up funds can commonly do this without credit.
In todays market, lending has changed. Hard money lenders have more issues to deal with when forclosing on properties. Previously, there were not many judicial laws that protected home owners. Now, a lender may need to wait months before initiating the final remedy. This, along other factors in the market have made arv lenders more conservative on who they lend to.
I’ll send a message with additional questions, should you wish to share and see what hml options are available to you.