No need to have your “dealers” liscense to arrange financing for your buyer. all you need to do is call greenpoint/conseco, etc and tell them you are trying to sell a home and you would like to send potential buyers to them for approval and financing. make sure you are working directly with the lenders group. don’t get tossed over to some broker who will charge fees etc. it really isn’t that tough to fill out their little application and fax it back. so ask them for the credit apps, have your buyers fill them out(on the spot…don’t let em take those things home…you’ll never see them again) and then just fax them back. should be able to tell you the same day or definitely the next.
Hello everyone, I recently read Lonnies books an am very excited about starting in this business.
My plan is to start with two or three fixer uppers that I can rehab and sell with outside financing (greenpoint,conseco etc.) to build up some capital and then move into doing owner financing. I had been saving up some capital and working on learning the market and getting my dealers license, when a deal fell right in my lap, a 1982 14x56 that needs alot of cosmetic work. The home is located in a very nice family park (where I also live) and the PM is all for me doing the project. I bought the unit for 4k and will probably invest 3k in fix up, the PM assures me it will be worth 12-14k when complete. My concern is how can I arrange financing for a potential buyer? Will any of these finance companies work with me even though I do not yet have my dealers license? I would greatly appreciate any assistance you can give.
It seems that you are missing much of the point of Lonnie deals. i.e. buy low (which you may be OK with), sell “as is” with resonable down and your own financing and give a small discount for letting buyer make repairs. Thus your return will be quicker, and fewer headaches and investment for you.
In your case - compare return for selling without repairs at $9000, versus carrying for 2 months and selling fixed up at 12000. Next look at it with say $1000 down (1/4 back now vs. 1/7 later).
Next, look at taking the 3K fixup plus the down payment on first, and go and buy another 4K home that you can get another 1K down and finance. Two good returns, and 2 income streams is the result. Look for the chapter comparing buying 1 10K home vs. 2 5k homes.
Glenn