Posted by Mark on July 23, 2003 at 15:53:31:
Matt,
I don’t have an answer, but I do have a comment for you. If you’re looking at 53k or so margin, you should be able to afford to pay the prepayment penalty and still make good money.
Or, is this a different type of prepayment?
Mark
Great Equity on a Single Fam - Posted by Matt
Posted by Matt on July 23, 2003 at 15:13:21:
I really appreciate all the help that this site has given me. It is a great resource and thank you for your time.
Well, I am fairly frustrated. I have found a great single fam house that needs to be rehabbed. I have it under contract for 117K and after about 10K of repairs I can sell it for around 170K. Obviously this is a great purchase.
I am stuck because
1.I am getting a stated income loan and most of the lenders have a prepayment, so it makes it hard to turn or wholesale it.
2. Because of the stated income my rate is about 7.5 so my cashflow will be a break even, so it makes it hard to lease/option or rent it.
3. I do not want to live in it very long because I want to free up some cash to invest in other properties.
4. My time to buy the property running out (I put zero earnest money) and I think the seller might back out of the deal.
5 I do not know if using hard money will work because the money is so expensive and I do not have a buyer.
Please help me! I know it is not a deal that I want to pass up. But I am running out of ideas and time. Thanks to all!
Matt
Re: Great Equity on a Single Fam - Posted by lisa
Posted by lisa on July 27, 2003 at 22:10:42:
my mortgage broker in missouri recently informed me that law passed in june that lenders may no longer charge prepayment penalties. haven’t personally obtained a loan since june so can’t say for sure. worth checking into. good luck.
Re: Great Equity on a Single Fam - Posted by Joe
Posted by Joe on July 23, 2003 at 20:33:38:
Have you looked into adjustable since you do not want to live there for long time?
Joe