Re: Opportunity - HELP!! - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 16, 2003 at 09:38:38:
You are looking for an equity-based lender, commonly called a “hard money loan” on this forum. Because you will feel that it is hard to pay the high interest on the loan.
These are mainly individuals with money they want to invest, getting a higher rate of return than banks pay for CDs. They are usually found by going through local loan brokers. So start calling local loan brokers. Look in local newspapers for classified or small display ads about “we make loans” or “want to borrow money and have poor credit,” etc.
You should be able to borrow about 60-67% of the fair market value of the property. This will probably cost you about 4-12% in “points,” or loan fees with an interest rate of about 10-16% and will be for no more than 6 to 12 months.
Tie this up immediately with a contract to buy, with a loan contingency. Then do your shopping for a loan. Don’t wait to have a loan lined up before you get it under contract. Remember, Frank Chin is out there. He might run across it and buy it while you are dithering. Or somebody else will do so.
Good InvestingRon Starr**********