Posted by Robert Butler on December 31, 2000 at 13:26:26:
need money for closing costs on house have colleritial
POSSIBLE DEAL - Posted by Sharonda(NY)
Posted by Sharonda(NY) on January 15, 2000 at 19:22:57:
I have a possible deal here but need a little help and/or advice. There is a home on my street that has been foreclosed on by the bank. After talking with the realtor that the bank is using I found that thay want 39K for the house.(The foreclosure amount was approximately 43K). I knew the prior owners who left the house a complete disaster and the house would probably require 10 - 15K in fix-up. After fix-up the house should go for approximately 59K (based upon other sales in the area). I would like to offer the bank 15 - 20K for the house because it has sat on the market now for 4 months and counting. I happen to know a couple of contractors that will give me a good deal on the fix-up costs. My problem is this: I cannot qualify for a mortage because of some credit issues and do not have any money of my own to invest. I have tried contacting my local REI club about becoming a member and doing this deal but have not received any response. Where can I turn to do this deal? I am really just looking for enough money on this first deal to pay off some old bills, clean up my credit, and maybe have a little something left over to look at another deal. If the entire thing can be done for 30K and the house can sell for 59K all I would want out of the net would be 10K. The other 19K could go to whomever invested the original money. I have the means to make monthly payments to someone if they would be willing to lend the original money (amortized over 20 - 30 years) and charge me a decent interest rate (nothing above 13%). I would be willing to take those terms and make monthly payments for a set period of time(let’s say 24 months) with the original balance being due at the end of those 24 months. Really what I am trying to say is that I am open to virtually all types of options but I would really like to get started in this arena. Is there any hope for me? If there is not I will accept that reality and be glad to turn this deal over to someone who can do it for a small fee however I would really like to do it myself. Any advice or guidance that anyone could give me would be deeply appreciated. Thanking you in advance.
LET’S GET IT ON!!!
Sharonda
Re: POSSIBLE DEAL - Posted by Paul_NY
Posted by Paul_NY on January 20, 2000 at 02:43:35:
Read JP Vaughn’s article on using a notebuyer to fund the deal.
Find a hard money lender - Posted by Michael Morrongiello American Note
Posted by Michael Morrongiello American Note on January 16, 2000 at 21:42:45:
Sharonda:
If the home is truly worth $59K as its “fixed up” value and you can purchase it for $15K -$20K and then invest around $10K into the fix up then the #'s seem to work. Find a Local HARD MONEY Lender who is willing to lend the funds to you to acquire the home and also provide you the fix up funds to be disbursed to you over 2-3 “draws” as the work progresses. If the Hard Money lender is comforrtable with the property and your #'s the even with $30K total invested that lender would be at a 51% Loan to value. That should be a very acceptable exposure level for an investor who does these types of deals. The other alternative that you can explore IF you cannot get anyone to lend YOU the funds is to tie up the home under an assignable contract and then “wholesale” the home to anotther investor for a few thousand $$ as an assignment fee. Let some one else that has more experience take on the project of financing, and fixing, and then selling the property. You make a quick nickel and then move on…
Michael Morrongiello
Operations Manager