Posted by SCook85 on June 03, 1999 at 09:21:36:
Ronnie,
A couple of my hard money lenders will let me wrap there mortgages. They do have balloons in there notes but I know going in what the market will pay for my note and then I will shop it as a worst case scenario. I also have my line of credit for purchasing notes that I put my what I create into. Then I won’t have any balloons and I can hold them as long as I’d like, or pool them and sell them off.
Hope this helps.
SCook85
SCook and Other retailers - How do you finance, etc.? - Posted by Brian (IN)
Posted by Brian (IN) on June 01, 1999 at 23:00:45:
I just read Steve’s success story. Great job. A true inspiration for me to keep going. I currently have two purchase agreements on single family homes. I have never done two at once before. Just got started about 6 months ago. How do you handle financing for 39 properties in 11 months or 2 at once for me. Do you strictly use hard money lenders, or purchase “subject to”, or a combination, or L/O or whatever works. Steve mentions that he does not have much in each deal so he can look at almost everything that comes his way. What is your most used purchase technique? Also when you are finding tenant/buyers for properties what are your typical perameters for L/O or contract sale? How much down? How much per month over your cost? What term? How much profit at the end? What technique do you use the most L/O or contract sale or other?
Thanks in advance for all the wonderful comments people share on this board.
Re: SCook and Other retailers - How do you finance, etc.? - Posted by SCook85
Posted by SCook85 on June 02, 1999 at 08:58:15:
Brian,
I use only one method to purchase, I make all cash offers and I use hard money to pull it off. Once I own a property I use whatever method I have to to get it sold, wheter it be owner financing, L/O, or if my buyer gets new financing.
Unlike a sandwich lease type deal, I don’t have a set amount of down payment in mind. I evaluate each of my buyers and make a determination of how I want to put them into my homes. If they have enough money and reasonable credit I will finance them myself. If they have good enough credit to get some form of bank financing I will do that. Usually if there credit prohibits them from getting any form of financing I will look at the L/O route, in which I want anywhere from 2-10% down and that depends upon credit and rental history. I do guarantee anyone who L/O’s from me financing if they demonstrate 12-24 months of making there payments on time. I figure that by this time I will be comfortable with financing them myself.
Hope this helps.
SCook85
Re: SCook and Other retailers - How do you finance, etc.? - Posted by ronnie
Posted by ronnie on June 02, 1999 at 20:20:20:
But … Steve, how do you finance them yourself if you took out a hard money loan on the property. How and when do you pay back the money on the hard money loan?
Re: SCook and Other retailers - How do you finance, etc.? - Posted by Dave B
Posted by Dave B on June 02, 1999 at 14:46:19:
Hey Steve…
Long time no chat. I remember we talked about hard money lenders and the such, even traded some email over the subject, mostly about what kinda financing I was using for my rehabs. What are you getting now? What kinda deals, rates, and limits?
Feel free to email me…
Thanks
DAve B
Kansas City