Posted by kert on July 16, 2007 at 22:50:28:
I appreciate all the guidance…It helps… I guess I have to just make offers until I get what I want…how I want it…Thanks
Im kinda frustrated but…Im just venting… - Posted by kert
Posted by kert on July 11, 2007 at 13:48:15:
its very frustrating to read
real estate books that all say " use creative financing to buy real estate and then when it comes to you actually doing it…you cant…All the banks want to see is cash down, or collateral… and as far as owner Financing…Finding that is like a looking for a needle in a haystack…
something even more frustrating is getting all these offers in my email about 100% financing, 90% financing…yadda yadda…only to hear…just fill out the applications and we’ll see what we can do …makes me feel like were filling out papers to to be a statistic…Who can get the most applicants gets an extra bonus on their check…
I feel a lil better now…NOT
Re: Im kinda frustrated but…Im just venting… - Posted by Parsa Sepahi
Posted by Parsa Sepahi on July 12, 2007 at 20:06:47:
Hi Kert:
With your FICO you can get 5% down residential property and 10% down commercial property, 100% down is possible in two ways in general today:
-
The seller will carry the whole 100%
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You find a property that the After-Repair-Value is MORE than the COMBINED current price and repair costs, here is an example:
You want to buy property X for 50k and it needs 10k of repairs. After repair the property is valued at 100k.
A hard money rehab lender/broker can finance 75% After -Repair-Value of 100k. So the amount financed is 75K.
This is how the financing will look like:
75k - 50k - 10k = 15k (in your pocket for paying the payments while rehabbing…)
Please let me know if this helps.
Best,
Re: Im kinda frustrated but…Im just venting… - Posted by Jeff
Posted by Jeff on July 12, 2007 at 12:33:14:
If its for investment purposes why not look at a commercial loan? Only 10% down and they are was easier to obtain the conforming residential loans. Just my two pennies
Re: Im kinda frustrated but…Im just venting… - Posted by Michael Steele
Posted by Michael Steele on July 12, 2007 at 07:52:04:
Kert
As a broker I would have to defend my license
If you look at what the average client requests – it is “What can you do” and most brokers have gotten acostomed to answering that question “what can we do” when the proper question you need to be asking is “WHAT CAN YOU DO FOR ME”…
As brokers we can offer the world but we can not offer the world to everyone. Just because I can do a 100% loan does not mean that you qualify for it. I can do 100%, I can do 95%, I can even do 90% but WHAT DO YOU QUALIFY FOR???
As far as creative financing – that truely entails cooperation from all parties (buyer, seller, lender, title, appraiser) and if one of those puzzle pieces don’t fit you have an incomplete puzzle.
There are many ways to achieve a deal (too many to name honeslty) but a true deal maker will know how to put the puzzle together and if one piece of the puzzle does not fit they can replace it with another and keep going until you have enough of the right pices to have a complete puzzle. (figuratively)
Sometimes as consumers we need a mental spam blocker becuase not all spam pertains to us.
Hope that helps.
Mike Steele
Re: Im kinda frustrated but…Im just venting… - Posted by kert
Posted by kert on July 12, 2007 at 10:41:22:
What does a person need to qualify for 100% financing…
My credit score is in the mid 700s, I practically have near perfect credit… but when All I hear from banks are…Well…We need 20% down…and the properties Im looking at are in the Hundred Thousands…Where does the average person get 20% down…
I have property but not enough equity in all of them to make up for the down payment…
Or how about …when the sellers dont wanna even consider Owner financing… even if it means theyll get the building sold…
I appreciate you replying and I know there are ways around things but it always seems like the people we deal with always wanna do it the hard way…
Its not you… - Posted by acw
Posted by acw on July 12, 2007 at 18:59:51:
Its not you…its the lending market in general. Too many foreclosures for lenders to deal with and they are cutting WAY BACK on their LTV’s to non-owner occupied. Now…there are still non-conforming lenders who will do your deal at higher LTV’s.
Re: Im kinda frustrated but…Im just venting… - Posted by Penny
Posted by Penny on July 12, 2007 at 18:16:54:
Please read the following well written article on the pitfalls of 100% financing by Ray Alcorn, moderator of the commercial forum, and you’ll understand why banks want more money down.
http://www.creonline.com/articles/art-203.html
Where does the average person get 20% down? Savings, family, friends, credit cards, home equity loans, to name a few. We’ve developed a habit of saving first, spending wisely and not buying toys we don’t really need. Over time, it is amazing how much you can save.
Depending on the property cash flow, sometimes it is possible to put down only 10%, have a 10% seller second and an 80% first. Just be careful of the risks of higher leverage, per Ray’s article.