I had this problem once and the bank would not finance me because the selling price set the “actual price - what a willing buyer will buy at and a willing seller will sell at” . Now when you refinance they take appraised value, even if you refi’ a week after the purchace. I got the owner to carry a contract, my ratio was 100k with a conservitive appraisal of 130K.
I would knock on a lot of doors to see if someone, even hard money might make the loan.
One warning, I had a friend buying a business and was trying to get financing form this guy. At the last minute the loan fell through and guess who bought the business after my friends option had ran out…You bet ya the guy that could not make the loan bought the business.
Just my two cents worth…best of luck.
I was hoping to get some financing advice on how to structure my first deal. I just put a house under contact for $172K with me paying closing costs, it has a fair market value of $245K - $250K. My exit strategy is A) wholesale flip B) Retail flip or C) Go to closing & buy - then sell on a Land Contract for $265K w/10% down.
If I do “A” or “B” do I have to worry about that “Seasoning Issue” that I’m starting to see posts about? If so, how should I structure the flip? I’d like to do “C” but I don’t know how hard it will be to get financing and I need to close within 45 days. My credit is fair, I’m in the process of refinancing my personal home. Are 90% - 95% loans available with this loan-to-value, if so, how long do they take? If I did a No-Doc type of loan would it speed up the approval process?
Any advice I could get would be greatly appreciated.