Posted by Ed Garcia on January 17, 2001 at 09:20:05:
Tim,
I realize you’re only know what you friend is telling you in regards to this deal. Tim one of the problems is the condition of the house. Most lenders want a house that shows pride of ownership. My suggestion is for your friend to go to Household Finance, Beneficial Finance, Associates, American General, or City Financial. I know that there has to be one of these lenders in your area. Tell them that he wants a home improvement loan and would be glad to pay on a voucher system. A voucher system is where the lender pays the contractor as the work is being done.
Posted by Tim in PA on January 16, 2001 at 21:29:56:
I have a friend who owns an investment property with an appraised value of $52,000 in the Philadelphia area. We would like to become partners in real estate investing, using the money in this property to start. He has tried to take the equity from the property in the form of a loan, but credit issues have kept him from doing this. Is there any way to get the money from this property in the form of the loan using my credit?
Re: Newbie financing question - Posted by Ed Garcia
Posted by Ed Garcia on January 16, 2001 at 23:43:44:
Tim,
I’m sorry, but you don’t give us enough detail. You don’t tell us what is owed on the property? How long has he owned it? etc. Just to say he needs a loan and has bad credit is just not enough information. We need more detail.
Re: Newbie financing question - Posted by Tim in PA
Posted by Tim in PA on January 17, 2001 at 05:30:06:
Sorry, I hope this helps.
The property has been owned for one year and there is no mortgage or lien on the property. It was a HUD purchase, at a price of $23,000. It was purchased with cash. My friend has been trying to renovate the property on his own, but is unable to focus on the property because a job change has taken him out of the area most of the time. The cost of carrying the property is hurting him, he had hoped to have flipped the property by now and to have moved on. His next step is to pay contractors to finish the work. His estimate is $5000 to complete the renovation in order to sell. At the time of purchase, there was interior cosmetic and light structural damage that he felt was necessary to fix in order to flip. At this point, most of the interior walls, ceilings and floors of the property are stripped but the structural repairs are complete. New drywall, paint and carpet are needed throughout to complete the job. He has put in $3000 for the repairs that have been completed so far.
He has tried securing a home equity line of credit, but his credit is in bad shape.