Posted by Chris on March 07, 2000 at 18:18:59:
Catchy title;-}
The equity hard money lenders are referring to is in the target property-not your stock portfolio.
Look for a motivated seller. This seller is not that motivated. You can always check back with the seller at a later time. Leave him your offer as it is. For now
go and look for motivated sellers, not houses.
-Good Luck, Chris
TELL ME ABOUT YOUR 1ST TIME - Posted by Jennifer
Posted by Jennifer on March 07, 2000 at 17:36:21:
I have hit a roadblock in doing my 1st deal (wholesaling). A finacial roadblock. The 1st offer I made on a FSBO the owner wanted $5000 earnest money and a preapproval. I only had $1000 to offer as earnest $. I can’t get preapproved because I don’t have enough money in securities (and I don’t want to have to pay for it). I also don’t have any equity to borrow against which is what hard money lender’s want, right? Are there ways to get money that I am overlooking?
Tell me how you financed your first “flip”. I need some ideas!!! THANKS - Jennifer in Houston, TX
P.S. THE HOUSE IS $165,000 - Posted by Jennifer
Posted by Jennifer on March 07, 2000 at 21:09:43:
They were asking $170,000. The lowest I could get them to was $165,000. Needless to say I didn’t pursue this deal. Everyone is right, they just weren’t motivated sellers!
Re: TELL ME ABOUT YOUR 1ST TIME - Posted by JPiper
Posted by JPiper on March 07, 2000 at 19:30:47:
$5K in earnest money is pretty hefty. What price level is the house?
I have used this amount and higher…it’s funny how the quantity of earnest money at times influences how seriously an offer is taken. I normally use a high earnest money when my offer is terrible (meaning very low).
The way I do it is to agree to put the earnest money up after I have completed my inspection and removed my inspection contingency. This brief period should give you ample time to wholesale…and then allow the new buyer to put the earnest money up for you.
All in all though, the main thought is that you should be pursuing motivated sellers…motivated sellers don’t typically make requirements such as these.
JPiper
Re: TELL ME ABOUT YOUR 1ST TIME - Posted by Terry ( Dallas)
Posted by Terry ( Dallas) on March 07, 2000 at 18:25:53:
Jennifer,
Find a motivated seller first. That is what I am looking for. The property will meet the requirements most all of the time if you do that. Though not always.
Be upfront with what you want to do. If they are not motivated enough for that then they are not motivated.
$5k down, how much is the property worth? Will you get that much down on the flip? If not your not making anything going into the deal and that?s bad business.
Remember it?s not just the fact of doing a deal but doing the right deal. Sometimes you may have to show a prequal. If it?s hard money try and do that.
Hope this helps
Terry