Posted by Craig on April 13, 1999 at 18:19:51:
Most of the note buyers on ANN buy notes from the noteholder, not the note payor.
Question for J.P. – Creating a Mortgage - Posted by daveh
Posted by daveh on April 13, 1999 at 14:57:53:
J.P.:
I read your how-to on creating a mortgage at closing. I have a REO property under contract and I’d like to use this technique to buy and rehab. My problem is all the investors I’ve contacted in the newspaper so far want to make a hard money loan at 50% LTV and 10 points (yuck!).
Questions: Have I not contact enough people yet? How do you cultivate the investors? What’s the maximum pre-rehab LTV I can expect them to lend?
Thanks for the help!
Split Funding - Posted by Sean
Posted by Sean on April 13, 1999 at 21:19:55:
Well, this isn’t going to solve all of your problems but I was thinking that some kind of installment funding plan might help. Like let’s say you’ve got the REO under contract for 50% of the fixed-up value and you get the hard money lenders to loan you that 50 percent.
Then you do some repairs, maybe charging on credit cards to fund what you need relying on the grace periods and getting the house re-appraised in 30 days when they agree to up your loan based on the new appraised value (and using that money to clear your credit cards). Maybe once the house is nearer to rehabbed they’ll up their LTV ratio. Ask them if they can work out a deal like that.
Re: Question for J.P. – Creating a Mortgage - Posted by Lucifer
Posted by Lucifer on April 13, 1999 at 18:11:15:
Hi Dave;
I realize this is for JP, but just to let you know, I
listed a note on ANN, America’s note network, and had it sold at 89% face value.Just make a mortgage and list it on ANN, you’ll get offers coming out your #ss!
Good luck buddy
Lucifer
10 Points - Posted by Sean
Posted by Sean on April 13, 1999 at 21:06:49:
Uhm on that mortgage that sold for 89% they charged you 12.36 points. If the guy who posted the question thinks 10 points is too much, I’m sure 12 points won’t be better.