Posted by Scott(WA) on February 14, 2001 at 04:32:39:
Michael,
I’m very interested in your ideas! They sound like what I was hoping for. I received your other email and will be calling to take you up on the help with how exactly to structure these deals. Thanks for your response and the new hope you have given me about putting my deals together!
Scott
Is there a way around this? - Posted by Scott(WA)
Posted by Scott(WA) on February 13, 2001 at 07:30:35:
Ed or anyone else that wants to help me get creative,
I have been buying condo’s and either rehabbing/selling or renting them for a fair cashflow. I have found a really nice condo complex and currently own three 2/1 condo’s there. The only problem with this complex is the “owner occupancy rate”. The percentage of owners stays around the 52-53%, this falls below the FNMA limit of 60% and my broker is only able to get non-owner occ. loans with 20% down.
What I would like is either a loan program that would allow 10% down or some creative way to get around this. I am very confident that these condo’s are a great deal and below market value, I’d like to buy more as I find them but 20% is to much of a hit to my capital to close these deals to often.
Any ideas would appreciated!
Thanks,
Scott(WA)
Consider this option - Posted by Michael Morrongiello
Posted by Michael Morrongiello on February 13, 2001 at 17:44:11:
Scott:
Approach the sellers of these units and let them in on your revelation (that their units will be difficult to finance for just about anyone since the project is NOT FNMA approved)- Then ask THEM to finance you by illustrating how they can sell to you, finance you by carrying back an owner financed trust deed (or mortgage) and then create immeditate CASH liquidty for that trust deed by selling it for a small discount at the time the property deal gets done.
You should be able to get into these rental units with as little as 5% cash down, although 10% cash down would be preferable. The sellers can carry a small portion of their sale to you in the form a subordinate 2nd lien.
We’ve purchased condo / town home paper all across the country in this fashkon on complexes that are “non conforming” just as you’ve described.
To your success,
Michael Morrongiello
Re: Consider this option - Posted by Scott(WA)
Posted by Scott(WA) on February 14, 2001 at 04:42:46:
Michael,
I forgot to ask - Are you planning to be at the convention? I’ll be there and it would be great to talk to you in person. I’d love to buy you beer and pick your brain!
Scott