What is the down side to this deal

Financing, Hard Money Lenders, Private Money
1

I have a question for the experts. I have a deal that has been presented to me and I’m looking for any thing that I should be cautious of. I had a Realtor call me and she has a client that is looking for a house to buy but she has bad credit and can’t get conventional financing on her own. She does have enough cash to make a year worth of house payments (put into escrow) and give me 10k up front and another 5K when she closes on the house with here own financing. That’s where I come in, I will get financing for this house and I will make the payments (taxes and insurance) out of her escrow account. This sounds too good to be true. Has anyone out there done something like this or have any experience with this type of deal? If so, what are the things to watch out for?

One other question, if I finance this deal, will it hurt me if I need to refinance my own house in a month

Thanks for your help in advance.
::slight_smile:

2

gman99,

There is too much missing information to give you a good reply. Instead, I’ll tell you about a deal that I have done. I had a house on the market for $120k (fsbo). I had a few tire kickers but no one really interested. I finally got someone that was interested in buying the property. He had $20k, but he had no credit (ie not in the contry long and no checking account or utility receipts. We worked out a deal where he bought the house ($110k), paid the $20k down and I carried a note for $90k at 8% for 15 years. He pays every month as regularly as a clock. He will probably pay the balance off early, because he does not like to be indebted. He is a hard working young man with a family. I wish I had 10 more like him. Just because people have no credit does not mean that they are deadbeats.

Wilson