100% mortgage - Posted by mohan

Posted by wes on September 14, 2004 at 08:03:07:

I think you are assuming you can get a 100% loan because the loan would be for less than what the property appraises.

Lenders have this neat trick that blows that out of the water. They lend based on the purchase price or appraised value, “whichever is LOWER”.

Most hard money lenders will lend based on the value, but they usually will only lend at about 65% of that value.

If you are in fact looking at commercial properties, you might be able to get some sort of bridge loan based on value. You would need to look closely at that because the rates would be high and it might be hard for the property to generate enough cashflow for that higher rate. However, at least you might get the property under your ownership then work towards finding permanent financing.

100% mortgage - Posted by mohan

Posted by mohan on September 13, 2004 at 23:40:35:

I think the following might work but I am not sure… Please someone confirm my thinking if I am right…

  1. Find a property appraised for say $120,000 but the seller is motivated to sell it for $100,000
  2. get a mortgage for 100,000

you must be smiling now :slight_smile:

anybody confirm this for me? I am thinking about buying this funeral home for 195,000 but it is 320,000 worth…

do you think this will work for me?