Posted by joseph on April 13, 2004 at 13:15:18:
I am not a guru like Mr Garcia, I believe that means in the example used, the $65K is through the bank and the $15k seller carry back is in essence a loan from the seller. You owe the bank $65 on their terms and the seller $15 on their terms. 2 different loans on the same deal. So say you want to sell the property after a year. You will carry back 50% amv at $100K then they(buyer) owe you $50k. And you will be paid that back over time.
Bad Credit,No Money to put down - Posted by KruzzenKidd
Posted by KruzzenKidd on April 09, 2004 at 13:33:48:
I have the carleton sheets NO DOWNPAYMENT (NO CREDIT)I am finding that I need BOTH just to be able to get 1 home I have under a 500 credit score,I am a disabled vet,unable to work,wife brings home the paycheck,We have 3 children and live check to check sometimes less then that.
My question is this “How can I find a lender that will lend me money to buy a home?” I already know the answer “To bad so sad get a life and a job pay off ALL bad credit issues then come back in 5 years” The bills/loan we have was from when I was working(NO ONE ever forsees the future and how one can go from living ok and having money in the bank to BROKE in a matter of 3 months work comp issue PLEASE DONT ASK ABOUT MY PROBLEMS)
So can someone help me out here I have read studied the course and so far have found ZERO help or how to do this it seems to me that credit is needed in life as I have always paid cash or check(I figure if you need to get something on credit you dont have the money to buy it and dont need it)
If anyone in the Pittsburgh,Pennsylvania area know of a lender who can help out please e-mail me
THANKS in advance
Kruzz
Re: Bad Credit,No Money to put down - Posted by Chris Martinez
Posted by Chris Martinez on April 12, 2004 at 18:02:56:
What exactly is a second seller carry back?
Re: 9 Ways to do deals with Bad Credit / No Money - Posted by Ed Garcia
Posted by Ed Garcia on April 09, 2004 at 14:15:59:
KruzzenKidd,
Here are the (9) ways to do deals with no money and no credit.
9 ways to do a deal with bad credit
In my workshop, I teach that there are at least 9 different ways you can do a deal with poor or bad credit.
Now before I give them to you, I want you to know that I’m really supportive of learning deal structuring. The first thing you need to do is, “investigate your deal” to know what I call (where the bodies lie) another words what is the seller’s main objectives or motivation. That allows, you to have an idea of what approaches are going to be compatible with the sellers needs, allowing you to do the deal.
Here are the 9 ways that I’ve mentioned.
(1) PARTNERHIP: Find a 50/50 partner. It don’t have to be 50/50, it can be what ever you can negotiate.
(2) FLIP: the best way to flip is to find a potential buyer first and then find a property. You can do this by running an ad on a property to see what kind of action you get. Once you have a potential qualified buyer, you’d be surprised how easy it is to find them a house.
(3) LEASE OPTION: Many times you can buy and sell with a lease option. We call this a “Sandwich Lease Option”. Jim, I’m not going to go into any great detail, you can find this information all over this forum.
(4) SELLER CARRY BACK: This is one of, if not my favorite way to buy. Now the best way to utilize this system is to do a second seller carry back in order to give the seller some cash in the deal. If money doesn’t exchange hands, many times the seller doesn’t feel that they consummated a sale.
Example:
I find a house that has a small balance on the first. Lets say the house is worth a $100,000; the balance on the first mortgage is $30,000.
If I wanted to buy this house for lets say $80,000, I could ask the seller to carry back $15,000 and go to a hard money lender to borrow 65%
of AMV (appraised market value) of which is $65,000 and the seller carrying $15,000 in second position, would ad up to $80,000. It would also give your seller $35,000 new cash, and $125.00 income on the $15,000 loan that they carried at 10% interest only, for 5 years.
(5) HARD MONEY: Hard money, is an equity loan made at approximately 65% LTV, based on the equity of the property only. Credit is not a consideration.
(6) HARD MONEY/SELLER CARRY BACK: Again, You can have the seller carry back a second and refinance the first, giving the seller some money. You can do variations of this system.
(7) SUB PRIME FINANCING: Many National lenders will provide financing at 70% with poor credit and won’t verify money down.
(8) SUB PRIME/ SELLER CARRY BACK: Again this combination can provide money to the seller, rather than ask them to carry the whole thing. Also there are local independent portfolio lenders that will lend as well as mortgage co’s and I always recommend seeking them out. National one’s would be Associates Finance, American General, Beneficial etc.
(9) CREAT YOUR OWN MORTGAGE: In our workshop, Terry Vaughan covers this, and shows you how to discount it and market it.
I hope this gives you some food for thought,
Ed Garcia
Re: Bad Credit,No Money to put down - Posted by Alex Groth
Posted by Alex Groth on April 09, 2004 at 13:48:10:
Here is your biggest challenge. To get out there and do it! If you have read the material, then pick out of the course a certain technique that would suit you for your first deal, and connect the dots… I speak from experience, no one could help me until I took that first step and that was to initiate a deal. Make some calls, ask for terms that work for you… biggest thing you will ever learn is that you don’t know their answer until you ask (don’t think you already know what they will answer). I have only done three deals and non have involved my credit or using a bank…