Posted by Randy on August 01, 2003 at 09:07:03:
I want to l/o or sub2 this deal, but don’t know how to go about doing it in this situation. I think your right on the new mortgage part. Just wanted to know if there was still a way for him to get a mortgage w/ that kind of fico score. They did give him a construction loan…
Just don’t make sense.
This is different…need help!!! - Posted by Randy
Posted by Randy on July 30, 2003 at 18:08:04:
I got a situation for all you guru’s out there.
I’m talking to a motivated seller who has just been taken advantage of. Got a construction loan to build this brand new house. Something happened along the way when the house was complete. He couldn’t move-in because he is unable to get conventional financing. He moved in some friends to cover the note for now. I think he is in financial trouble or something like that. He said that he had a becon score of 800 when he got the construction loan. Now, it is at 590. The seller is willing to do anything to get out of this situation and not have his credit worse than it is. He wants to cash out to save his credit. This house has a great spread on it. Look…
Situation:
Construction Loan - $168,000
Asking - $173,000
F.M.V. - $209,000
Willing to lease/option and maybe sub2 the house to me, but how can I help him out without a mortgage on the house?
Re: This is different…need help!!! - Posted by IB (NJ)
Posted by IB (NJ) on July 31, 2003 at 24:52:33:
“Something happened along the way when the house was complete”
Don’t you think you need to find out exactly what happened and why this guy couldn’t get conventional financing?
Also, there are no self-proclaimed ‘Gurus’ who post on this board. Your request for one could be why you haven’t got much of a response on this thread.
Re: This is different…need help!!! - Posted by Randy
Posted by Randy on July 31, 2003 at 10:58:04:
Thanks for the advice. I’m just a beginning investor and have barely the basics down. Anyone who have done more than one creative deal has more experience than me.
I’ve heard from a friend of the sellers that he probaly loss his job, not sure.
Re: This is different…need help!!! - Posted by IB (NJ)
Posted by IB (NJ) on August 01, 2003 at 15:30:02:
"I’ve heard from a friend of the sellers that he probaly loss his job, not sure. "
Hi again, Randy. It’s our job as investors to find out exactly what happened. We can’t make sound business/investment decisions based on what friends and neighbors say about the seller. Wwe deal DIRECTLY with the seller so that we can get the FACTS. Once we have the facts, we can make the right decision. Chances are, if the seller DID lose his job, he won’t be able to get financing and will be stuck with the construction loan until he sells the house. But you have to talk to the seller and find out the complete situation. It’s really the only way you can help him.
In REI, you’re like a Doctor. You can’t prescribe the proper medicine unless you know what’s making him sick. Talk to your patient.
Re: This is different…need help!!! - Posted by GL - ON
Posted by GL - ON on August 01, 2003 at 08:38:33:
Hi Randy,
The only way I can see out of this is for someone to buy the place and get a new mortgage.
You don’t say what your plans are. Do you want to live in the house? Flip it? Own it as a long term investment?
How long can the existing financing stay in place? Could you LO like you want to, and wait for your buyer to get a mtge and cash you out?
Could you find a partner to help you get a mortgage?
You don’t give us enough to go on. You could dream up a million ideas but you need to know where you stand and what you want to do.