Posted by Jim Kennedy on May 25, 1999 at 14:00:48:
In addition to David?s questions:
- Does the property need any repairs and, if so, how much?
- What is your exit strategy (what do you plan to do with the property - e. g. wholesale flip, retail flip, hold for rental, occupy as your personal residence)?
- You mentioned that you don?t have good credit. How bad is it? (Rhetorical question, I don?t really want to know but it may not be as bad as you think. You may still be able to qualify for a loan.)
You wrote: ?If there is a mortgage then I guess with bad credit there is no way to make an offer.? Definitely inaccurate ? they are several strategies available to you even with poor credit. That is one of the advantages of CREATIVE real estate. Once we know your exit strategy, we will be able to point you in the right direction.
?What I thought was if they want $119K for the property but owe say $90K then do you try to borrow $90K from a hard lender and then they take a second for the $19K.? At first glance, this does not look like an appropriate solution for this transaction. Let me suggest that I only consider using hard money for short term deals, like rehabs, where I am in and out of the deal in a very short period of time and where the profit in the deal supports the cost of the hard money. Also, most hard money lenders (at least the ones I know about) won?t go above 65% LTV.
Start by giving us some additional information and then we can go from there.
Best of Success!!