how is everyone getting funding for property? - Posted by logan-ohio

Posted by Rich-CA on August 04, 2007 at 10:02:03:

I agree completely. I am a buy and hold investor and found that on my side of the market the correlary to easy money was lower rents and longer vacancies. Now that the money and housing markets are correcting themselves - with people who had no business getting a loan getting foreclosed - the rents are rising and the vacancies are falling.

Being from CA and investing in other states, the term “California Investor” that I heard was one of more money than brains. That will now correct itself.

Investment by definition requires a plan and a goal. The “prices always go up” crowd, now for some reason silent on the boards, were and are speculators. And many lost the roll of the dice. A lot of people I know who got into “investing in RE” were refugees of dot com busts and stock market corrections. No plan at all, just the gleam in the eye for fast dollars.

how is everyone getting funding for property? - Posted by logan-ohio

Posted by logan-ohio on August 04, 2007 at 06:32:23:

with the lenders changing all there programs and mking it almost impossible to purchae NOO. what is everyone else doing about getting funding? I was told the best I can do is 85% ltv no matter what my score is.

Re: how is everyone getting funding for property? - Posted by Eric (MI)

Posted by Eric (MI) on August 05, 2007 at 14:19:46:

Who needs financing? Not trying to be sarcastic at all, I just use the seller as my banker.

Re: how is everyone getting funding for property? - Posted by Mark (SDCA)

Posted by Mark (SDCA) on August 05, 2007 at 09:23:15:

I was told the best I can do is 85% ltv no matter what my score is.

Maybe it has changed again in the last 2 months but here is a note I got from my broker (90% LTV):

I have an 80% first at 6.75% (full doc, fully amort. 30 year fixed)
second of 10% at 8.25% (full doc, full amort, 30 year fixed)

This is based on a 720+ credit score, full doc. The ARMS are actually higher rates.

Re: how is everyone getting funding for property? - Posted by Rich-CA

Posted by Rich-CA on August 04, 2007 at 10:04:11:

I have a HELOC that features the ability to fix the interest rate on a 20 yr amortization as well as treating each of these as a “sub loan”.

The comment about “hard money”, they still won’t loan above 70% or so. Some of the alt-a replacement programs I have been offered have the features of a hard money loan: 3+ points up front, 70% LTV and so on).

Re: how is everyone getting funding for property? - Posted by JR_FL

Posted by JR_FL on August 04, 2007 at 07:42:28:

Seller finance
Private Money
Existing Loans
Hard Money

I have not been to a bank in 5 years.

Re: how is everyone getting funding for property? - Posted by Bob Smith

Posted by Bob Smith on August 09, 2007 at 24:33:26:

Not that you can’t get seller financing here in Florida, but I bet it’s a lot easier to get in MI than in most other states. To hear one of my fellow investors tell it, when he was living in Michigan it didn’t take much if any motivation on the part of the seller to negotiate seller financing so every deal he did had it. No so easy down here. Owners of junkers will deal but owners of pretty houses take a lot more effort (not that it isn’t worth it).

Re: how is everyone getting funding for property? - Posted by Jason S.

Posted by Jason S. on August 04, 2007 at 13:37:05:

Hey JR, quick question.
What method do you use to get private money? Do you advertise in the paper? What methods would you use, when just starting out,to get private funding?

getting funding for property? simi RANT - Posted by StevenS(CPA)

Posted by StevenS(CPA) on August 04, 2007 at 09:32:23:

The days of easy financing that a lot of new investors got in on are quickly coming to an end.

I remember when bank financing was hard to get for most investors. I’m kind of glad we’re going back to those times. Because with easy financing too many people get in without putting a lot of thought into the fact that they are making a huge investment with a lot of risk.

Now, a lot of people and banks are once again finding out that easy money and credit without a solid plan is like jumping in the ocean without a lifevest, oxygen tank or floatation device. If something goes wrong their sunk. And now their only hope is for someone to bail you out.

Think outside of the box. Have a solid plan to buy the property and to exit from the property. Make it an easy straight line from beginning to end.

I’m not very smart but I know a good deal when I see one. If you can show that to your buyers and sellers you will be OK 98% of the time.

Re: how is everyone getting funding for property? - Posted by Eric (MI)

Posted by Eric (MI) on August 09, 2007 at 08:27:40:

Very true. I can probably get 5 out of 10 to offer seller financing in certain areas without even trying. When there are 20+ homes for sale in your neighborhood (nice neighborhoods mind you) the motivation is already there without having to explain it to them. Plus 1-2 years on the market helps with that as well!

Re: how is everyone getting funding for property? - Posted by JR_FL

Posted by JR_FL on August 04, 2007 at 13:56:51:

I will from time to time advertise a note for sale. But I don’t like the paper. It breeds trouble with the FEDS and State Folks.

I prefer to work within my network of people that I meet.

Everyone knows someone that has money.

Just developing a program that works for you and putting together a presentation works well.

I don’t like private Luncheons, or seminars and so forth. I prefer one on one.

People will tell you everything about themselves. But you try to get close to there money watchout…lol

Network with people. If you are just starting out as an investor I cannot tell you the power you have if you can just to get the concept of networking with people.

By the way. 10% of your networking should be with like minded folks. The other 90% should be other businesses and getting to know people.

Well enuf of my soap box.

Jonathan Rexford
Relationship Marketing
www.sendoutcards.com/15932