Rookie REI in need of HML help

I have 6 REO properties that I have been looking at; 3 of which I am very serious about placing an offer on. Of the 3, my first is a $84k duplex appraised at $495k. I want this to be my “starter investment”. The plan is to acquire this property for the $84k owed, and turn around and sell it lower than the FMV (around $350-400K). I have a Realtor that has given me a written guarantee that they will sell the property within 30 days. If it is not sold in the 30days, they will buy it from me. So already, that assures me that within 1 month of acquiring this property, I will have my +300k profit.

Here is where my challenge lies:

  1. I don’t have a FICO worthy of a 90% LTV,
  2. I don’t have ANY down payment cash
  3. I don’t have sufficient verifiable income.

What I DO have however, is:
a) Property priced at 17% of its value,
b) A guarantee in writing from a Realtor assuring me that if they can’t sell within 30 days, they will buy.

What I NEED is a HML willing to get in on this deal with me. I will provide my own personal guarantee in good faith that if the full amount of funding is provided ($84,000+7,000 in repairs) a full repayment of the loan+interest and fees [at whatever rate] will be paid in full at the close of my sale.

any advice? where to turn? who to talk to? what to do?

Any and all suggestions are welcome.

Kenne Dinham Jr.
Eternal Key Investments, LLC.

Where is the property located?

Depending on what part of the country it is located, I might know of a HML program that could fit.

Please understand that liquidity is going to be a part of the equation, as you must self fund the cost rehab while waiting for the investor to inspect work completed and reimburse you.


Scott Miller

All of my investments are in New York City, this one specifically is in The Bronx.

So you say I’m going to need to fund the rehab myself. Even without any improvements, the property is still valued at $495k. The amendments would only “pretty it up” and increase the value from the $495,000. But wait, how can I rehab a home I dont own yet?



All but a few rehab lenders work on a reimbursement basis—you do the repairs and then are reimbursed by the escrow account.

The HM lender would finance 100% of the purchase + 100% of the repairs + 100% of the closing costs and in most cases the actual mortgage payments until the loan matures (usually 6-12 months).

It goes without saying that you can’t repair a property you don’t own yet…

If you have any additional questions, feel free to ask.


Scott Miller

Those three 100%'s you got there is what’s got me stirred up right now.

Tell me something good in NYC

It’s best that we continue this offline—there are guidelines against advertising on this forum, so I’m rather restricted in what I can broadcast…


Scott Miller