Private lenders in Tx - Posted by SeanF
Posted by SeanF on May 14, 2007 at 22:25:41:
I am in need of some advice on this investment opportunity. I have come across a deal to purchase some rental property however i dont think i can purchase it by conventional means because some of the units are somewhat distressed (slight rotting of the wood, in need of new flooring… etc.). A lady is wanting to get rid of all her rental property (8 duplexes and 2 triplexes) all on adjacent streets across from a small university and a prime rental maket. Each unit rents for 500/month and she is asking 38K for each of the duplexes and 48K for each of the triplexes. 80% of the units are currently rented. The cash flow potential for these properties seems very profitable. She is willing to sell each property seperately to me but I would like to purchase as many of her properties as possible. I am not sure how best to go about it.
Here is my situation:
I am young… 25 years old. I have a 650 mid score (The only blemishes on my credit are small collections from when i was 18-20). I have my real-estate license and mortgage license but have not began to start marketing it yet. I am a senior in college (bio-chemistry major) and have been bartending and managing bars for 7 years (5 years at one job and the past 2 years where i currently work). I have qualified for a 100K mortgage by going stated-full doc with the use of my bank statements which will show consistent deposits of 4-6K/month over a 2 year period. I own one duplex already but it was purchased recently and does not have more than maybe 10k in equity. I have about 10K cash on hand to invest.
However like i said the property is distressed and I’m not sure how to go about obtaining financing. I’m not sure if hard money is the route i need to go since i am not wanting to do a quick flip on the property. Are there any programs/lenders out there that will finance these kind of deals over a 10yr period? Any advice is greatly appreciated.