Posted by Michael Afesi on August 08, 2005 at 11:56:07:
Once you get the deal signed up, you may want to secure financing through a hard money lender that does not look heavily into credit(and rather uses ARV of the home). Though they might charge 18-15% percent, it would help you to avoid a partner and still retain a decent return . Look in your local sunday paper and search under money to lend…a few calls might go a long way. I usually would not recommend letting the homeowner stay in the home because of sentimental ties and “misunderstandings” a year or two down the line, as to how the deal was originally drawn. If you have no problems letting homeowner and her friend stay, you may want to put in a protection that you could foreclose if the loan was late for any time during the probationary 1 year. You also might want to think about getting ACH (automatic clearing house) where you would take the renters debit information. If they are not comfortable with this, you may want to increase the security deposit to hedge your investment. for the actual rent to help ensure that payments are made on time. Best of luck, hope this helps and please keep us posted.