Posted by dewCO on November 11, 2000 at 21:03:04:
Hard money lenders make their money by charging interest at 11-15%, and 3-6 points for their loans, plu sosme other “usual” loan costs. Not usually a loan for a “keeper” owner occupied or not.
You either have to buy using one of the creative approaches mentioned here or go out and get your own owner occupied loan on it after you rehab it.
How woud YOU buy a home? - Posted by IB (NJ)
Posted by IB (NJ) on November 10, 2000 at 22:46:28:
I’m presently a newbie in REI. We currently buy houses for cash, rehab them, and flip them retail with our own money (I have 2 partners). Sometimes we finance a house (after it’s rehabbed) with a bank (commercial mortgage)until we find a buyer. We’re looking to start using Hard money lenders and private investors for our next projects.
But right now I’m looking to purchase my own home but of course woud like to do as low below MV as I can get it. Is it possible for me to maybe have my LLC purchase it from an auction or motivated seller (using OPM), fix it up, and sell it to myself at cost thereby maintaining the equity for myself as the home buyer? How do I go about doing this? How does the hard money lender/private investor/mortage company make their money?
How would you go about doing this if you were house hunting for yourself?
Thanks in advance everyone!
Re: How woud YOU buy a home? - Posted by JoeS
Posted by JoeS on November 11, 2000 at 22:49:20:
I am certainly not an attorney, but I believe that a LLC can purchase, rehab, and sell to anyone or anything as long as all the details are in the open, above board and nothing is held back. In other words, do the deal as you would do every deal…LEGAL!!! In this way, you do not border on loan fraud. Hopr this helps.