Posted by Brent_IL on September 30, 2003 at 15:39:57:
?My question is though how do you go about finding financing on these deals.?
- Conventional financing usually isn?t available unless the LTV is very low. In that case, a second would be available. A new loan would negate the purpose of the subject-to.
?For instance, if you find a motivated seller with a good property that owes back payments and has possible liens, either from mortgage co or home owners association. How, do I come in with a empty check account and offer them help??
- In a well-conceived subject-to deal, you aren?t giving the seller a lot of money unless you’re “stealing” the property. The help that you are offering comes in the form of debt relief and a lower cost hassle-free sale. Without staying power, you are talking about flips. You find a new buyer and cut a deal with him that allows you to profit from the arrangement that you have with the seller. Success with flips depends more upon the quality of the deal than it does on your personal financial situation.
?Are there lenders that are interested in provided funds up front with a % interest on their investment or willing to cash out when the house sells or gets refinance.
has anyone had a arrangement like this??
- Participation loans in SFH?s are a variation of the kind of loans that are used with large commercial properties. At one time commercial participation loans were big with insurance companies. These loans became somewhat popular in the residential arena when inflation was pushing up housing prices at a rate of 1% to 2% a month. This hasn?t been the case for a long while, so participation loans have lost favor. Unless you live in an area like coastal California where property appreciates very rapidly, a participation lender will be difficult to procure.
What you are looking for is a cash partner. There are probably a few hundred posts about finding investors in the archives. Try searching for private money also.