I live in Georgia but only an hour north of Jacksonville. I am a member of the JAX REIA. If you live near Jacksonville, there are a TON of investors and lenders just waiting to help you succeed.
Hard Money lenders usually only offer 65% LTV with percentages upwards of 18%. Use them to do the fast cash deal. There are other lenders who will re-fi with no seasoning for the repayment of the hard money guys. One option is to ask the guy to sign an Option to Buy contract. That is a simple document that allows you to tie up the property for a preset amount of time. You can use that to secure another investor to buy or help you buy. Consider a Lease Option, too. You can simply pay the owner rent money, live in it yourself while you secure the financing options. There are a number of ways to do the deal. If the owner isn’t interested, keep looking. If you are looking to flip properties, you need to find ones that are around 50 cents on the dollar. For rehabs, find properties that can be bought AND rehabbed for 65% LTV. Since this original post is a month old, the situation has probably been resolved by now but, if it hasn’t, these ideas may work. Good luck.
I have the opportunity to purchase a 3/2 townhouse close to the beach in Florida. Owner is behind on mortgage payments - currently doubled up to catch up - which won’t be possible - Property needs alot of TLC - it has gone well below what others have sold for at $62K. Owner wants out but believes property will bring $30K equity. Latest comps in the subdivision only sold for $60-62K fixed up. Mortgage balance is $46K - not assumable. With a minimal amount of rehab property could yield higher but owner has no means to do this. I want to get a loan to pay off the mortgage + rehab money and use as a rental.
Have contacted Ed Garcia by email twice with no response. Anybody have any ideas?
RSL,
I am also new to realestate investing.Also live in FL. We have just joined a local realestate investing group and received 4 different vendors flyers advertising financial help to investors. We are in the process of following through with the application process. We’re trying to find funds without going through the traditional bank way. They like people to have traditional"jobs" and to buy property that is already sound. Don’t feel like jumping through their hoops. Glad we found out there are other ways to accomplish our goals. Are you involved in a realestate investment group? Tons of info there.
E-mail me back for details,if you want. We are in pinellas county. Would like to find somebody local to share ideas with.
Thanks,
RDH
Re: First Invesmtent Deal - Need Advice - Posted by Linda Ogden
Posted by Linda Ogden on April 21, 2002 at 06:57:56:
Not sure about Florida market, but I’m assuming it is the same across the U.S…most investment lenders will only lend to a maximum of 65% of the resale value of the home (to include repairs placed in escrow).
I have a problem myself in trying to locate some honest investors in my home town that are simply “honest lenders” and don’t have real estate agents in house to lose purchases once I reveal my bids.
I’m now having to obtain the property by contract BEFORE I approach investment backing with an extended option period to ensure financing. Tacky, but true as I have lost properties in the past by stories of “Oh, I already knew about that property!”
Good Luck…don’t forget to calculate possible real estate agents fees should you get into trouble re-selling the property (i.e., chose a house on a buzy street, corner lot, backs up to commercial property, etc.)