Posted by Bruce Lawson on July 02, 2002 at 04:42:07:
Hi Ryan,
How poor is your credit? You may be surprised it may not be as bad as you think, get your credit reports and check for accuracy.
If your score is below 620 it will be difficult to be granted a working line of credit from a bank(other factors included)and conventional loans will be just as tough. Hard Money is a great option for investors in situations similar as yours.
There are quite a few ways to make deals with less than perfect credit, Ed Garcia list the nine ways of dealing with bad credit check the archives and review those.
You probably should consider getting your credit repaired or repairing your credit yourself either way it will make a huge difference when approaching lenders when your score is attractive to them, lenders are score driven.
Contact me if you want to discuss what you can do about your credit issues.
Sincerely,
Bruce Lawson
Obtaining Financing - Posted by Ryan
Posted by Ryan on July 01, 2002 at 14:00:19:
Hello,
I am seeking advise on financing for two investment opportunities. I have two questions – (1) How do I get the downpayment of $20K (Opportunity #1) and $10K (Opportunity #2)? (2) With the tenants being there for a couple of years and still under contract for another two years, what type of financing is conceivable – Traditional vs. WLOC vs. HML (my credit is poor)?
The particulars of the two deals are as follows:
Opportunity #1:
Property Type: 2 Warehouse Units
Occupancy (%): 100% until 1/05
Purchase Price: $687,000.00
Downpayment: $20,000.00
Seller to Carry: 2nd Mortgage of $145,000.00
Current Occupancy (%): 100% – Tenants have been there for a couple of years
Annual Taxes: -$3,610.00
Annual Gross Income: $80,340.00
Annual Operating Expense: -$13,137.00
Net Operating Income: $66,796.00
Reasons for Sell: Seller has moved and wants to do a 1031 Exchange
Opportunity #2:
Purchase Price: $385,000.00
Downpayment: $10,000.00
Property Type: Commercial Condo
Current Occupancy (%): 100%
Lease Terms: 10 year lease - 1 year into it
Annual Taxes: -$2,713.00
Annual Gross Income: $42,000.00
Annual Operating Expense: -$3,936.00
Net Operating Income: $35,351.00
Thanks