Posted by Mark (SDCA) on April 10, 1999 at 17:33:08:
Start soapbox. I agree. This didn’t help at all. Frankly, the ONLY way to grow is to get involved with things you aren’t entirely comfortable with. And if you spend all your time “learning” and none “doing” then you will wake up old and have a million things that you coulda, shoulda woulda done. End soapbox.
As to your problem… it sounds tailor made for creating a note and selling it at the close. If the appraisal supports the LTV you mentioned, that should be no problem. As I recall, the note buyers I spoke to would go 65-70% with no seasoning and no money down. Hope this helps.
I have spent two months working on a deal. I have a HUD duplex under contract until the 18th of April only. Purchase Price-41,900. Assessed value-87,900. FMV-worst case scenario-75K Each side should rent for 500. per month Have financing going through with husbands and my joint credit. This loan has no seasoning so I intend to refinance immediately, rent it and offer it with some owner financing. Husband’s name will not be on the deed. My dilemma is my husband left me. Appraisal has been done. Figures not in yet, suppose to close this next week. No investors have answered my ads. My thinking is not right. I can lose the man but not the house. Any suggestions would be greatly appreciated.
It would appear that your only financing choice is hard money?.an asset based loan. If you can’t locate a hard money lender, the only other alternative is a flip, using a simultaneous close since HUD will not permit assignments.
I’d work toward both of these possibilities at the same time. To do this you either need to change your ad, or at least run a second ad that would be appealing to an investor you can flip to.
One note of concern. I don’t know the law in New York?.but in my state as a married person to sell a property your husband would be required to sign the deed. If your husband decides to become uncooperative this would become a problem. Further, in my state, a married person would be required by the lender to have the spouse sign the deed of trust. Again, this might be a problem depending on your relationship.
I would check out this aspect of New York law quickly. As it pertains to real estate the title company can answer your questions as to any requirements that they would have. I would check this out in light of your own circumstances before I committed more time or money.
Start looking for hard money(Hard money is a loan based on equity not credit), yellow pages, look for signs around town that advertise we buy houses and call em. Maybe one of em’ doubles as a hard money lender, or can point you to some.
While doing that also, read J.P.'s article on this site about creating your own mortgage. Create a mortgage with yourself as the payor, with the LTV that you need it shouldn’t be a problem. Talk to mortgage brokers, some of them also use private funds, etc. Maybe they know someone who would buy the mortgage you create.
Get busy, No time to live a country song for the moment. You’ll figure it and the next one will be easy. Sorry, about your marital problems, best wishes.
Marsha,
What can you do to act quickly in this situation…
you do have a week.
No one is interested in the property? What does your current ad say?
Can you live in one side of the duplex and offer to pay rent to the new owner (or is housing not a concern in your situation)?
Do you know any more experienced investors in your area you could assign the contract to (excuse me, double close with, since it is HUD). Or if they are not interested in buying, can they bring you a buyer?
Can you extend the contract, close later? If not, what do you stand to lose ? What was your earnest money?
Anyway, with that kind of margin in the property, you should be able to borrow hard money to purchase if you are that comitted to closing on your own. Its not the best solution, but it is fast and you can always refi later.
Post more of the details, Marsha. We can help you think through this.
Sandy,
My housing is not a problem. I have $500.00 down on it. It shouldn’t be a problems selling quickly either as they were swamped with offers but this property failed to make it through the closing twice before I got it. My ad says: Do You Have Excellant Credit and A Good Income? Want to make some fast cash. Assist on a real estate closing. callxxxx I’ve gotten calls but they were either not really credit right of were looking for 100k plus. I have tried contacting the closest investors club which is 100 miles away to no avail. I don’t know anything about hard money. This is not NYC. Thank you…you’ve got me thinking.
What? She shouldn’t get up in the morning? We have no knowledge about the future day, do we?
It seems to me that Tension had a lot of knowledge about working this deal, but has had an unfortunate turn of events in her life. Negativity breeds negativity. Try to smile today, it might make you feel better.
Brad,
I appreciate your opinion even if I don’t agree. If it were not for the respect I have for this board, I would probably elaborate, but discression is the better part of valor. Sorry I wasted your time.
Haven’t read all of the posts yet, but unless HUD is undergoing a reorganization in your area (they are in ours) you should be able to extend it for a couple of weeks, anyway. I think it requires about $150 or 175 which is credited by perdiem is you don’t need the full extension.
What part of the country ARE you in?
Can you qualify on your own?
If not, how “short” would you be?
Better read the rest of the posts…sorry if I am duplicating.
