Crazy problem - can we make this one work? - Posted by Pete K

Posted by Evangelist Phifer on September 11, 2003 at 23:07:56:

We’re in the baby stage of purchasing, a place to
have our Church Services, we can use your helpful
support. I would love to hear from you. If this is what
you assist Churches in doing

Thank You,
Evangelist Phifer

Crazy problem - can we make this one work? - Posted by Pete K

Posted by Pete K on August 20, 2003 at 23:07:11:

Hey all,

I’ve got a friend who is in desperate need of help on a set of deals, and is also in need of a web connection. Here’s the situation:

His property is worth about $345k. It is a church, and because of this his previous lender got cold feet a day before closing. He has crappy credit (like a 570) and very low income, but has been making payments on time to the exisiting lender (under CFD) of about $2250 per month. He owes about 65% on the property, and wants to refinance, pulling $40k out to use on a few other deals he has brewing. He tried to obtain this refi from a local mortgage broker.

He needs to close fast on a refi, and to do so needs someone to either qualify for a loan, which would net this good samaritan a second and some money every month for being on the loan (for about 12 months), or some hard money lender that will give him some cash, or he needs some other solution which we have not thought of yet.

Unfortunately, he has a few properties under contract, and needs to liberate some cash by the end of the month to close these or he will lose the deals.

Any advice is greatly appreciated. I can get the exact numbers from him if it’s important. And no - this person isn’t me :slight_smile:

Re: Crazy problem - can we make this one work? - Posted by Ed Garcia

Posted by Ed Garcia on August 21, 2003 at 10:27:02:


Most lenders will not lend to Churches. The reason being is that no body wants to repossess God. Because churches are noneprofit, they don’t show income. It doesn?t look good for the image of a lender who forecloses on a church.

I make loans on any kind of property. Heck, I?ve made a loan on a Christmas tree lot, Nudist Colony, Alligator farm, Fish farm, you name it.

In California with your friends credit score I could normally make this deal. However with your friends credit score I would have to go hard money and this deal is obviously a commercial deal.

The rule of thumb on a commercial deal in California is 50% LTV. Depending on the property I can stretch it to 55%, however your friends needs 65%.

If the deals in California, give me a call I may still be able to help,

Ed Garcia

Re: Crazy problem - can we make this one work? - Posted by James Strange

Posted by James Strange on August 21, 2003 at 04:55:42:

I don’t see your friend being able to pull cash out on this type of property with a low credit score. If the LTV was around 50% then he might be able to pull some out.