Financing Question - Posted by Robert Dale

Real Estate Investing Real Estate Financing
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Posted by Ed Garcia on July 01, 2002 at 09:16:29:

Robert,

You don’t us tell what State you’re in or what kind of property that you’re looking at.
We don’t know if it’s residential or income producing commercial.

You state that your credit is shot and that you have no money for the down, but that after you purchase the property that you have to put a 100K into it. Where are you going to get the 100K? By telling us that the property value will be worth $1000,000 you’re giving us the impression that you’re going to be purchasing it for re-sale.

If so, then my suggestion is for you to get a partner or flip it.

The main reason for my suggestion is because if you have had credit problems and are still short cash wise, then how are you going to debt service the holding cost as well as the fix-up for this acquisition?

We need more info,

Ed Garcia

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Financing Question - Posted by Robert Dale

Posted by Robert Dale on July 01, 2002 at 24:59:22:

Okay, my wife and I are confused. We found a property we want to purchase. The purchase price would be about $490,000 and we would need to put about 100k into it, but when it was done, it would be worth close to a million dollars. The seller agreed to hold a 20 percent second mortgage. We have a few thousand that we can put out, but that is it. Our credit is completely shot due to previous issues. It is getting better, but still is bad. Do you know where we can get financing for the other 80 percent, possibly more, so we don’t have to come up with any cash at closing?