ED -- Strike 1 -- Any suggestions? - Posted by Mike (WI)

Real Estate Investing Real Estate Financing
#1

Posted by Mike (WI) on March 05, 2002 at 11:48:27:

Hi JohnBoy!

Thanks for your reply. I have a quick follow up question for you then…

Where would one obtain such a loan? Is this through another mortgage broker? Private lender? Both?

I have read that different lenders (hard money lenders) will do different things and have different requirements. Who do you use? Or if you can’t really mention them by name, where would the best people to talk to be? I have been told to contact current investors who do this and find out who they use, but I don’t know any around here in my area. But since the CREONLINE people do, I figure I’d as all of you.

Thanks for your help in advance,

~~ Mike ~~

#2

ED – Strike 1 – Any suggestions? - Posted by Mike (WI)

Posted by Mike (WI) on February 28, 2002 at 13:30:20:

February 28, 2002

SITUATION

Trying to get into wholesaling and/or rehabbing property for resale. Need financing to do anything. Looked at some foreclosures with realtor. Found a couple really nice ones, but financing with mortgage broker fell through because they were trying to “figure something out to make it happen”. Upon hearing that, the realtor told them not to bother sending an approval letter because if they are taking so much time “figuring things out”, then there is too much risk in the deal. The realtor does not want me to get burned on my first deal, so he’s watching out for me.

In the meantime, both properties have now received several offers from others and I am out of the game.

MY QUESTION

How do I get financing without all the hangups?

MY SPECIFICS

  • currently no job (been doing the temp thing)
  • credit score is 697 as of Feb. 8, 2002 (Trans Union)
  • credit card & student loan debt: mid $20K total.
  • currently renting, never bought a home…yet.

OUTLOOK

Once I do a deal or two, I know I’ll be well on my feet financially and can propell from there, but it’s just getting the first deal that’s the problem, especially when no one wants to help you with the money requirements. They know I’m an upstanding guy who is true to his word, but financing regulations treat everyone who is new as though they are the lowest form of life. I wish to rise above that and make something of myself.

Any help in how to “make things happen” here would be greatly appreciated. Thanks again!

~~ Mike ~~

#3

Re: ED – Strike 1 – Any suggestions? - Posted by Larry in CA

Posted by Larry in CA on March 01, 2002 at 20:02:03:

Try to line up a couple rehabbers by driving around and looking for houses in rehab. Find out what kind of spread they need and if they would interested buying a flip from you. This is the best way to get started, just find the deals, get them under contract with as long as possible to close, and flip them to a contractor or rehabber. At $3-5000 a deal, you’ll soon look real nice to a private lender.

#4

Re: ED – Strike 1 – Any suggestions? - Posted by JohnBoy

Posted by JohnBoy on March 01, 2002 at 17:24:19:

What kind of down payment can you come up with?

You can get no doc, non-owner occ with 10% down.

#5

Re: ED – Strike 1 – Any suggestions? - Posted by Mike (WI)

Posted by Mike (WI) on March 05, 2002 at 11:42:46:

Thanks Larry!

You are suggesting the same thing I originally wanted to do - but this realtor/ex-rehabber I was looking at houses with seemed geared toward ‘rehabbing’ only and was almost totally against “flipping”. (Something about coming under intense scruitiny by the authorities due to mass fraud in recent years.)

However, I fully intend to do things legally and I like your suggestion, for it is what I first intended to do. I have also read Steve Cook’s book “Wholesaling for Quick Cash” and William Bronchick’s “Flipping Properties”. Very nicely done books that reaffirm what you are telling me.

Thank you very much for the help. Sorry about the delay in replying - my computer hard drive needed to be “system restored” so I had to reinstall my email programs before getting back to you. Thanks again!

~~ Mike ~~