Newbie Needs Professional Help !!!

Financing, Hard Money Lenders, Private Money
1

Question # 1 credit score 534 as of 01/20/08. I have been employed since 09/07. i make $600 net every week. I was a student for the previous 2.5 years. I live in miami,fl and i want a property that costs $ 55,000. This is a property that i believe the bank owns and is in foreclosure because on the tax roll someone paid $155k for the house 2 years ago.Recent comps are in the $120k ballpark. Who can do this loan for me. For this property the mortgage should be around $500 a month and Section 8 rentals in the same zip code are going for $800 - $1100. All of these numbers are verifiable. This would be my first home purchase ever and as a first time homebuyer i need a pro to help me.

My plan is to buy it, rent it out section 8, do some cosmetic work ,and if possible take out some cash at the same time that i buy it or just wait a while and let the markets go up and then take out some cash

Question # 2 The reason my score is 534 is because the have $12,000 +/- in credit card debt that has been in collections for 5 years. Will paying off some of this improvr my score. Would it be even worth the hassel of dealing with tricky collections agents.

2

you will need to improve your scores quite a bit before you are going to be able to find financing.

3

You may look at a hardmoney loan they are more equity driven and less credit driven. I have used Mango Bay out of Boca listed in the hardmoney lenders column and have had good luck getting some very nasty deals done. They are particular and not cheap but your deal sounds like what they like.

4

Easyfunding,

Once he gets the hard money loan what is his exit strategy? He indicated that he wanted to buy and hold renting to section 8 borrowers. With scores like that and lots of collections the HML will end up foreclosing on the property if he is unable to sell it.

David,

I would suggest you look for maybe a duplex and live in one side of it. This way you can get your feet wet being a landlord. Since all of your debt is 5 years old you have a good chance of qualifying for an FHA. While this is going on you can probably get your creditors to negotiate the delinquent debt down to pennies on the dollar. Hope this helps.