Posted by moremom on September 14, 2004 at 15:57:44:
I do know of someone but they would need more information. Drop me an email and I can follow up with them.
Need Financing - Posted by Mike
Posted by Mike on September 14, 2004 at 04:27:38:
Hello gang, me and a friend have been readind this great site and would like to get busy with RE investing. But we both have bad credit not much cash to work with.We both bring in modest incomes and do own our own residences. We came across a pair of triplexes right next door to each other. Both are in good shape and completely rented out at this time. They are asking $214K for each. Does any one know of a lender who might be willing to take a chance? Thank for any help…Mike.
Re: Need Financing - Posted by John
Posted by John on September 15, 2004 at 06:43:59:
Mike,
Congratulations on getting started.
A word of advice.
Lenders do not take chances. If they are making a margin of 2%-3%
(what they pay for deposits vs what they earn when they lend) then a
mistake is hard to pay for. They would have to do a lot of other loans
to get back what they have lost.
Hence assume you should be looking for deals where the lender is not
taking changes. They are not asking for any split of the upside so they
do not want the downside.
If you really do want a lender who is taking obvious changes (bad
credit, no cash from buyer, unknown cash flow) then you really need a
cash equity partner. They take chances and will take the lion’s share of
the upside for the risks.
John