I am unable to get a mortgage with a bank But can get hard money loan I have put in offers on 4 to 6 properties with the hard money lender comming in with 40 to 45 % and asking the sellers to carry back 30 % of the sale price . The rest is my input to the deal The problem comes that all the sellers are saying well if you can come in with 50 % why can you not just get a bank mortgage and pay us in full? My question is what wrong here ? As these are not big price homes they are from 60 K to 225 k HELP
Are you going to banks that are not loaning on NOO properties currently? Or is there something in your financial history that’s keeping you from getting these loans?
I thought I remembered seeing in the past where you posted many times about trying to find no money down deals, so I thought that might be part of the problems but here you said you were putting some into the deals.
I can see having a little bit of a hard time getting 225k on a NOO property, but I would think you should be able to get 60k without too many problems unless you have severe debt issues, low income, late payments, etc.
If it’s just a bank preference thing, just keep shopping around.
The “system” is a little cokeyed right now. Bank lenders have very strict requirements and have little wiggle room and that often leads to situations that look crazy.
I recently purchased a second home for myself and despite a seven figure net worth and a six figure income, I could not qualify for a conventional $500,000 mortgage. I ended up paying cash for the house. So I could not qualify for a mortgage even though I could pay 100% cash. It is nuts but that is the situation right now.
That said, your hard money lender is not giving you a good deal at all. Look for a new one. you can easily find them to loan 60-65% but you’ll still have to put some money in the deal too.
HEY i would like to find a hard money lender who would lend 60 to 65 % !! And would and can do it in Wa / OR states as well would allow the sellers to do a small take back. I do have money to put in the game. The sellers realtors mostly are saying if you can get this much money in place why can you not just get a normal mortgage. So they are adviseing the sellers to not take my deal . I think this is wrong yes/no ? But yes i would like to have information on a hard money lender who will do 60 to 65 % in Wa / Or states and can do it fast with out looking at my credit
Frankly, it’s not really the owners’ Realtor’s business where you get the money from…to them, money is money as long as you can get it in a timely manner. When they leave the table, they’ll have their money, right? What’s the problem?
Are you using a Realtor?
the problem I see is that he is using hard money and asking the sellers to carry a second…If I’m reading this correctly…So the seller is now in second position to a hard money lender…And we all know what will happen if this person defaults on the hard money lender…its a smart move for the sellers not to take these deals…who in their right mind would jeopardize their home for a deal like this…thats the issue I see…
I was actually just wondering if it was the HML who was taking the second and that is why they were offering such a poor deal.
OP, who is the 1st lender and who is the 2nd.?
you know just as well as me that there currently are NOT any HML willing to take seconds…regardless of who takes the second or the first that is the reason these deals don’t get done…neither party wants legal issues down the road…these are poorly constructed…i wouldn’t fund or take these deals from any standpoint…
I agree I would never do one. Not sure if anyone would.
Iam working a realtor As well yes iam asking the sellers to hold a small short term 2nd .But really they are walking away from the table with most all of there money. If the hard money lender puts in 40 to 60 % and iam putting in 10 to 20 % This only has the sellers holding a note for a short term of 36 months tops and max 20 % of the buy price. But i still do not know of any hard money lenders doing 60 % in WA / OR
Do you own other properties that you can talk about to build the seller’s confidence in giving you a 2nd vtb or is this your first property?
Did you find out the seller’s motivation to sell? If it’s a market with a lot of foreclosures, you need to have your realtor pull all those listing and show it to them so the seller is convinced that they’re not gonna sell their place in this market if they don’t give a 2nd vtb and be stuck with more carrying costs and the banks aren’t giving conventionals because of all the foreclosures and that’s why you’re using HMLs.
This is so right ! In this market if sellers want to make a sale in most cases any way . They are going to have to give some and that just may be in giving a short term 2nd .As well most hard money is not giving up a big part of the sale price so us /me as the buyer have to come in to the deal with more then ever before from some where . This is why we need to come in with a 10 + % in the deal And i think is the sellers own the property with no mortgage on it then they should be more open? That is to the many ways they can sell there property