REO Advice on financing it - Posted by Jim


#1

Posted by Stacy (AZ) on November 24, 1998 at 10:30:01:

This is yet another reason (among about 100) why I wish there were real estate investing clubs in Phoenix. Sure would make life easier.

Luckily, when I called the mortgage lenders out of the yellow pages and asked about “hard money”, I eventually got referrals to the people I needed. But it would have saved a lot of time to simply have a list of them given to me. One of these days someone will start an REI club in Phoenix.

Stacy


#2

REO Advice on financing it - Posted by Jim

Posted by Jim on November 23, 1998 at 13:14:57:

HELP! I found this great REO townhome. The TH is listed at $48,900 and valued at $65,000. The bank has already previously accepted an offer of $34,000 but the guys financing fell thru. I would like to buy this, but have no cash to put down, and BAD credit (Discharged BK, 2 years ago). Any ADVICE, IDEAS, or even to be told forget it would help. This is a money maker IF I can get the money for it soon. The bank is an out of state mortgage lender, so I don;t know about talking to them. They are using a local RE agent.
PLEASE send me any and all Advice.


#3

Re: REO Advice on financing it - Posted by Stacy (AZ)

Posted by Stacy (AZ) on November 23, 1998 at 13:51:41:

To get it quickly, you could go the Hard Money route. Contact hard-money lenders in your area. You could start in the yellow pages if you don’t know of any. Be prepared to spend a large amount on loan costs and interest (can be financed with the loan in most cases). But if your intent is to resell quickly, the interest shouldn’t matter that much. Just be sure if you are going to resell soon, that you have no pre-payment penalty on the loan.

Be sure the 65K is true FMV (the lender will confirm). A 52% LTV should be no problem. If you want to buy and hold for a long term rental property, your ability to get good, low interest fiancing is something you’ll probably have to contend with to make a good cash flow.

Just some quick thoughts…make your profit going in and you should be OK.

Stacy


#4

Re: REO Advice on financing it - Posted by Mr Donald

Posted by Mr Donald on November 23, 1998 at 13:45:33:

Hard money, based on appraised LTV ought to suffice here.


#5

Hard Money lenders here do not advertise - Posted by Sandy FL

Posted by Sandy FL on November 24, 1998 at 04:57:14:

Especially in the yellow pages :slight_smile:
Usually the only way to find them is through
the real estate clubs. Call up the local
club listed here and ask the person who runs
the clubs who they would recommend for hard money.
Fastest way to do it.