Posted by Rolfe Kurtyka on January 17, 2001 at 17:54:24:
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Thanks “Lenders” - no down. - Posted by Rolfe Kurtyka
Posted by Rolfe Kurtyka on January 16, 2001 at 14:21:09:
Deals number 14 & 15 have been signed. Two more no money down deals, one with BANK FINANCING! My first bank financed deal!
Sometimes, a deal seems far away, and I get discouraged. I feel I can’t find a deal, much less chase and close one. Then one hits. As many of you know, that is a great feeling.
In all truth, I’ve probably spoken with nearly 50 bankers while seeking financing for purchase and rehab. All rejections. Finally, since my start in January 1998, my 15th deal (a purchase-renovate-sell) will be financed through a real bank! Geez, that feels great. And guess what? This was the first banker I spoke with after completing Terry and Ed’s Lender’s workshop in St. Louie.
Both properties are sfh bank foreclosures purchased through a wholesaler, who is financing 150% of the purchase price of one of the houses. The other will be financed by the bank, up to 75% of the appraised value of the fixed up property - that should cover me. I’ll keep one as a rental (my 6th) and sell the other (my 9th).
Thanks to Ed, Terry, Piper, et.al. Rolfe
Re: Thanks “Lenders” - no down. - Posted by JPiper
Posted by JPiper on January 16, 2001 at 15:43:09:
Congratulations Rolfe! Sounds like you’re cranking now!
If I may ask, is the bank financing “permanent” financing? Or will you need some type of take out financing after completion?
JPiper
Re: Thanks “Lenders” - no down. - Posted by Rolfe Kurtyka
Posted by Rolfe Kurtyka on January 16, 2001 at 22:37:39:
Jim;
The bank financing is short term, to cover purchase and renovation. They’ll loan up to 75% of the “as it will be after rehab” value. For the first few deals of our relationship, the bank prefers a sale after renovation (very strong market in Mpls/StP), although they did say they’d be consider providing purchase & rehab financing with a take out mortgage, from another source, in place. This particular bank will provide portfolio mortgages, 15 year term at I believe 2 points over prime, charging 1.5 points. At this stage in our relationship, however, they stated they’d finance only one or the other, not both the purchase-rehab AND permenant financing, of any individual deal. I have been able to obtain permenant take out mortgages, with terms I’d rate as fair, not great, from other sources, but this is the first time a bank has been willing to loan money to me for purchase and rehab. Still a long way from that $250,000 credit line (which is what I initially requested, of course!), but this is a start.
Thanks for the reply! Rolfe
Re: Thanks “Lenders” - no down. - Posted by dewCO
Posted by dewCO on January 17, 2001 at 11:18:22:
So the bank that is funding this, is or is NOT, the seller of the property? thanks