Calling all Experts! Possible First Deal - Posted by Monty (N. Texas)

Posted by Monty (N. Texas) on December 18, 2000 at 22:22:25:

Thanks for the reply. To answer your question, I am located in the Wichita Falls area. Your comments are appreciated. I will check the archives for more info on PACTrust deals as I am still coming up to speed on this area.


Calling all Experts! Possible First Deal - Posted by Monty (N. Texas)

Posted by Monty (N. Texas) on December 18, 2000 at 18:27:32:

Hi all,

Need some advice and help. I have found a nice home in immaculate condition that I would like to purchase. Numbers work like this - Current appraisal 66.5K , Seller very motivated and will take 48K for the home. He needs 20K for down payment on new home he wants to buy and will carry back the difference at 8% for 30 yrs. The home is free and clear. Now the questions -
a.) If I go after hard money or a sub-prime loan, are they likely to lend the 20K on this home (I have great income however bad credit from recent divorce). Any potential recommendations on sources?
b.) In a general sense, am I approaching this deal correctly? My plan is to buy, then resell owner finace at higher price and higher interest rate. Comparables in this neighborhood are coming in at 60-65K and sell fairly quick because of the schools and the charm of the area.
Any recommendations and feedback will be very appreciated. Thanks and best of luck to all of you! Hope to see you at the 2001 Convention!


Re: Calling all Experts! Possible First Deal - Posted by dewCO

Posted by dewCO on December 19, 2000 at 13:38:54:

If you go after hard money, you may not be able to charge a higher interest rate! Bud’s right, have the seller get his money out 1st then he can carry the rest for you.

Why not try- - Posted by Bud Branstetter

Posted by Bud Branstetter on December 18, 2000 at 20:52:47:

Have the existing owner get a loan for the 20K. You then take over that loan and have him carry the remainder. If you insist on qualifying for financing yourself there is 95% money out there for investors. You can also do 100% owner financing and sell a first note at closing with him keeping the rest. The rate will be higher but it is no down.

Either way of financing I would still sell as a PACtrust. You are likely to have $150 positive cash flow. If you want the cash flow you wrap for 30 years. If you want the 18K profit as cash you put a limit on the term of the trust and have them refi at that point.

Where are you located in N Texas?

95% - Posted by Ali

Posted by Ali on December 19, 2000 at 15:58:18:

Since you have mention that your credit in not good, you are not qualified for 95% investor loan , for that you need 720 fico, for 90% investor you need 660 fico.
If seller is carrying note( seller financing ) he has to season your note b,cuz he want get good money for his note due to your credit.
I am a mortgage broker in Dallas,tx.
I am also a investor if you ever need a partner call me.