Back up financing - Posted by Greg

Posted by Matthew G on March 19, 2006 at 21:27:16:

Why don’t you just roll with it and resell retail - there seems to be enough spread. At that price it will be easier to find a retail buyer and offer to pay closing costs or hold small 2nd for 100% financing then have title deed seasoning issues. Thats just my 9yrs of experience talking.

Back up financing - Posted by Greg

Posted by Greg on March 19, 2006 at 18:39:13:

Hello group:

I’m a fairly new investor in Syracuse, NY. I have mainly purchased sub-2 because I’m in the middle of working on my credit. I have brought it up from horrible to just plain bad (quite an improvement if you knew the whole). I find it is easier to get a contract if I can pay off the seller so I found a HML that will loan 65% of the as-is appraisal value, no credit check. It all sounded good until I found the perfect property for this financing. I called the lender/broker to find out exactly what they need from me. It turns out that what was said earlier had a small unseen twist. The lender can loan on the property IF (this is a “BIG IF” to me) the lender is looking to do another loan. My offer was accepted this past friday, the same day I found this out. My question is what happens when everything I have lined up fails because the lender “doesn’t want to do another loan at this time”. Now I’m stuck holding the bag between to Realtors. I have a commitment letter but those are only as good as the paper they are written on. It took me a while to find this lender or for him to find me. Now I have to May 16th to close this thing and I’m a little worried.

Purchase price - $34.5k
Comps - $77k to $86k
Repairs - Very few, lets say $5k for sake of conversation
I would like cash at closing for comfort.

I need a back up lender just in case,

Greg B