Financing an REO - Posted by Bruce Pendleton
Posted by Bruce Pendleton on December 14, 1999 at 22:34:46:
I am currently doing the numbers on a real nice Reo the bank wants 126000 for, and I was going to offer 110,249.
I’m a first timer at this creative financing and the bank will only do an 80% loan. I have found another bank that will go to 90%.
The property is a two flat with a FMV of somewhere between
150,000 to 165,000. Even at a 90% loan one months rent on just one of the two apartments will pay the note payment.
Where can I find a private mortgage investor to loan me more than 90%, without the $7000.00 in pts and closing costs a bank will charge?
I’m a Licensed Plumber and can do the minor upgrades the property will require to rent at fair market. I just want to keep as much of my own money out as I can for costs after closing. Are there private investors that will make a 100% loan on a property you plan to hold on to for rental?
This deal appears to have alot of equity no matter how you
crunch the numbers. I just don’t have the contacts to check this out properly. Thanks for any help you can provide, this really is a great service.