Anybody want to buy a wife? (Long) - Posted by Paul

Posted by Ed Garcia on February 06, 2001 at 15:17:24:


It may appear that way but they’re not. #4 is a seller carry-back period. It could be with new financing in place, or cash difference to the loan.

#6 is really to illustrate a Hard Money loan can be done with a seller carry-back for those who could not qualify for a conforming loan. Should you not have a low enough LTV to finance Hard Money in its entirety, you can combo it with seller carry-back.

#2, Amy, the best way to do this is to advertise for buyers. I would pick a hypothetical property that’s a mover in the area, and advertise it, whether I have one or not. I can always tell the prospective buyer that I’ve just sold it and have another one coming up, so why don’t they let me have my lender pre-qualify them for it. Knowing I have a qualified buyer, I can then find them a house, tie it up and flip it to them etc.

#7 Could depend on which lender you’re using, the property, the structuring of the deal, and how bad you are? Some lenders at lower LTV’s don’t verify down payment.

Ed Garcia

Anybody want to buy a wife? (Long) - Posted by Paul

Posted by Paul on February 04, 2001 at 15:14:05:

I just returned from a 5 month assignment in Japan with my company to find out that while I was gone my wife (whom I had to leave in charge of paying our bills)
Had not kept up on our bills very well.

In fact most of our obligations are now 60-90 days past due. Also our car was reposessed about a week before I
returned. (She says that she began to get behind but was afraid to tell me because she thought that I “…might get mad…”!!

I know that the reposession and late payments have hurt my credit quite a bit. However I intended to get back into REI after my Japan trip. (I had 2 Triplexes and a single family home but I sold them about 3 years ago.)

If I try to climb out of this hole it will take me about a year to get everything current or paid off, further destroying my credit. I am thinking about filing for chapter 7 however I really do not want to do this if it will severly hurt my chances of getting back into investiing in real estate.

My question is this…How severly will a bankruptcy affect my ablility to get funding for investments?


PS-any ideas and/or suggestions are apreciated.

Re: Anybody want to buy a wife? (Long) - Posted by Ed Garcia

Posted by Ed Garcia on February 05, 2001 at 11:09:39:


I think I’m married to her sister. Just kidding Paul. That’s the breed of the cat. My wife has convinced me that my job is to make money, and hers is to spend it. So fare we both seem to be living up to our end of the agreement.

Seriously, I’m sorry to hear about your dilemma, but these things happen. Here are some things you can do while you’re trying to rebuild your credit. The first thing I want you to do, is to go to There you will find everything you need to know on CREDIT REPAIR etc.

Secondly, here are some ways you can do deals with credit problems.

9 ways to do a deal with bad credit

I just finished answering a post that I thought might be interesting for newbies who are just starting out and have poor credit.


In my workshop, I teach that there are at least 9 different ways you can do a deal with poor or bad credit.

Now before I give them to you, I want you to know that I’m really supportive of learning deal structuring. The first thing you need to do is, “investigate your deal” to know what I call (where the bodies lie) another words what is the seller’s main objectives or motivation. That allows you to have an idea of what approaches are going to be compatible with the sellers needs, allowing you to do the deal.

Here are the 9 ways that I’ve mentioned.

(1) PARTNERHIP: Find a 50/50 partner. It don’t have to be 50/50, it can be what ever you can negotiate.

(2) FLIP: the best way to flip is to find a potential buyer first and then find a property. You can do this by running an ad on a property to see what kind of action you get. Once you have a potential qualified buyer, you’d be surprised how easy it is to find them a house.

(3) LEASE OPTION: Many times you can buy and sell with a lease option. We call this a “Sandwich Lease Option”. Jim, I’m not going to go into any great detail, you can find this information all over this forum.

(4) SELLER CARRY BACK: This is one of, if not my favorite ways to buy. Now the best way to utilize this system is to do a second seller carry back in order to give the seller some cash in the deal. If money doesn’t exchange hands, many times the seller doesn’t feel that they consummated a sale.


I find a house that has a small balance on the first. Lets say the house is worth a $100,000; the balance on the first mortgage is $30,000.

If I wanted to buy this house for lets say $80,000, I could ask the seller to carry back $15,000 and go to a hard money lender to borrow 65% of AMV (appraised market value) of which is $65,000 and the seller carrying $15,000 in second position, would ad up to $80,000. It would also give your seller $35,000 new cash, and $125.00 income on the $15,000 loan that they carried at 10% interest only, for 5 years.

(5) HARD MONEY: Hard money, is an equity loan made at approximately 65% LTV, based on the equity of the property only. Credit is not a consideration.

(6) HARD MONEY/SELLER CARRY BACK: Again, You can have the seller carry back a second and refinance the first, giving the seller some money. You can do variations of this system.

(7) SUB PRIME FINANCING: Many National lenders will provide financing at 70% with poor credit and won’t verify money down.

(8) SUB PRIME/ SELLER CARRY BACK: Again this combination can provide money to the seller, rather than ask them to carry the whole thing. Also there are local independent portfolio lenders that will lend as well as mortgage co’s and I always recommend seeking them out. National one’s would be Associates Finance, American General, Beneficial etc.

(9) CREAT YOUR OWN MORTGAGE: In our work shop, Terry Vaughan covers this, and shows you how to discount it and market it.

Paul, I hope this post is helpful to you and will encourage you to stay with it. The only way you won’t be successful in this business, is when you stop trying.

Ed Garcia

Generally… - Posted by Vic

Posted by Vic on February 04, 2001 at 17:53:26:

… a bankruptcy will only effect your borrowing power for 2 yrs from date of discharge. If a repossessed house is involved then it may be 3 yrs.

Rather than filing BK though, I’d try to do some flips or L/O’s or something to pull you out of the hole.

Good Luck,

Ed… - Posted by Amy

Posted by Amy on February 05, 2001 at 21:27:15:

Aren’t #4 and #6 the same or am I missing something?
Re: #2: any suggestions of ads to run? Any property?
Re: #7 “won’t verify money down” - you just “say” you put 30% down?