Posted by Nathan(oh) on April 20, 2002 at 11:24:36:
If you have a motivated seller, as you should, there should never be a problem. I have never had a seller check my credit or even think about it. If you are dealing with the right kind of situation they will just want your help and if you sound confident,(as I am sure you do) then there should be no problem with credit. When I first started this biz, I had no credit, no cash, and no job. Still doing just fine.
HTH
nathan
Will an owner carry if you have bad credit? - Posted by Lisa
Posted by Lisa on April 20, 2002 at 07:14:41:
I found a hard money lender to give me a 75% LTV loan but I need to find a seller that will carry the rest for a 0 down deal. I have bad credit due to a bankruptcy. Is credit an issue on a seller carry back?
Re: Will an owner carry if you have bad credit? - Posted by jeff
Posted by jeff on April 21, 2002 at 10:17:31:
you shouldnt need much more than 75% anyway. surely yuor not about to give full price for a property are you??? if they wont take less than full price, then they are nowhere near motivated enough. you can buy any house at full price. if it was that easy, wed all be rich. the money isnt made on houses you buy at full price, the money is made on the purchase not the sell. selling only gratifies that amount. buying as far below FMV as possible is the way to make money.
if your only talking abuot a couple grand, try to “simplify” things for the seller. show them how they wont have that money anyway, even if they dont sell to you. show them what a realtor costs, there goes a few grand right off the top. show them title insurance and other costs that are paid by sellers. if yuor a flipper, yuo wont really need title insurance if you dont put down alot of money. add up all the little costs and show them that they wont be losing money by letting you “take” the property off their hands. if they are nmot using a realtor then remind them how much advertising costs and how long they are gonna have to make payments on the house while they try to sell it on the market themselves. try to overwhelm them and maybe scare them out of the house if nothing else works.
BUT whatever you do, DO NOT pay full price.
Re: Will an owner carry if you have bad credit? - Posted by Ed Garcia
Posted by Ed Garcia on April 20, 2002 at 14:51:56:
Lisa,
The answer would depend on the seller and how good of a negotiator you are.
But let there be no question that the possibility is there??..
Ed Garcia
Re: Will an owner carry if you have bad credit? - Posted by CLAIR_MO
Posted by CLAIR_MO on April 20, 2002 at 13:57:06:
I have ask several investors who I know about an owner checking one’s credit before the owner carries a second…if you have enough equity in the property to cover the second there should be no problem and if there is a problem…kindly back off from the deal because the owner is not motivated enough. Wait for a period of time then call the owner up again to see if he has sold his property if not then offer your offer to him again with him carrying a second without a credit check. Suggestions have a deep impact on people especially if you mentioned that you are quite serious about buying his property and probably is the most serious buyer that he has at this time.