Posted by Ed Garcia on January 25, 2001 at 10:35:29:
Rosie,
Your thinking is good. Just remember there are loan programs out there that do stated income, NIQ’s, NIV’s, etc, etc,
Ed Garcia
Deal#3 - Idea to finance HUD O-O, use cash or ? - Posted by Rosie_FL
Posted by Rosie_FL on January 24, 2001 at 14:08:01:
Hi all,
Here I am at deal #3: Winning bid for a HUD Owner Occupied house. Have to live in it for 12 months. Looking for creative ways to pay for it. Here?s where I?m at:
I bid $37,000 and house is worth $50-55,000. No problem about the owner occupied part as I was looking for at least a 2/2 for my own place anyway and this is a 3/2 half duplex, concrete block needing cosmetics.
I bid CASH, I have CASH but don?t want to spend MY cash.
I?m thinking of stuffing cash into a CD then borrowing some or all against the CD to pay for the house. The house will then be without a mortgage. The CD throws off interest to counter the loan interest. If I can get the loan as interest only…
The Bank Of America loan officer said she?d charge 2 percent above what the CD pays.
Waiting for a callback from my small, local bank officer to see what she can do. She was a bit put out because I bought the Deal #2 house so fast, using my own cash, that she didn?t get a chance to make a loan. I think she really wanted to! But she also said she?d tell the underwriters that I was a self employed hairdresser working from home. I didn?t like the lie.
Due to all you fine folks, I am happily self-unemployed (living lean in my parents? home in FL) and have an impressive $364.50 monthly income from a 3 year note I hold on an auto loan (my mom is the payer - pays like clock work). I have very minimal living expenses (now).
Excellent credit, no debt, no J.O.B. (although I am President of a Corporation with assets in 4 figures), low income, upcoming equity (I can hear Terry saying “air, 10% is air”).
I have $45,000 cash to ?move around?, and gold and platinum credit cards with zero balances, and a one year old car completely paid off.
Any better ideas than the CD idea?
(Man, I am one L/O away from a non-negligible cashflow. I can taste it.)
See you at the convention again!
Rosie