Financing in Virginia - Posted by Wayne

Real Estate Investing Real Estate Financing
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Posted by Wayne on January 03, 2001 at 17:03:32:

Ed,

Thanks for the reply !

I just called my neighbor and he has the receipts for all the drywall, spackle, tape, and paint he purchased when he refinished the lower level of the house. He said it would be no problem to get a receipt for the time he spent doing the work (he is a drywall finisher by trade). With this amount credited toward his down payment hopefully I can set him up with a lender.

Thanks,
Wayne

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Financing in Virginia - Posted by Wayne

Posted by Wayne on January 02, 2001 at 19:04:23:

I am new to learning about RE and have ordered some materials, but don’t feel I am in a position to start making deals until I have learned a bit more.

I have a neighbor that asked me if it were possible for him to purchase a home he is currently renting. He has been renting from the owner for two years and the owner wants to sell to him. Mr. Tenant has done some repairs on the home and the seller has agreed to sell below FMV since Mr. Tenant has done some repairs and been on time with rent payments. There is no “rent credit” in the lease, but Mr. Seller is basically telling him he will discount the sales price like there was a rent credit in the lease.

The houses in this area have a FMV around $100K and the seller wants to walk away from the deal with $85K free and clear. The only problem I can see with Mr. Tenant as far as getting a mortgage is that he has only $2K cash to use to close the deal.

Does anyone know of a lender that might be interested in doing a mortgage in this set of circumstances ?

Thanks,
Wayne

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Re: Financing in Virginia - Posted by Ed Garcia

Posted by Ed Garcia on January 03, 2001 at 10:03:30:

Wayne,

What needs to be done in this deal, if for Mr. Tenant to come up with receipts for the work that has been done. Don’t ask me why, but I bet that he’s going to have a problem finding them, or you’re going to get some kind of STORY? B.S.

I may be wrong, but you can chuckle if I’m right. It makes no difference, this deal can get done. Don’t ask me why, but I know that with a little ingenuity, he’ll come up with them.

The seller than can have a written agreement between he and Mr. Tenant, that he is giving Mr. Tenant credit for the improvements done on the house, to go towards down payment.

Ed Garcia