Ed
First try to get the owner to finance part of the payment and then refinance at a later time.
Or you can ask for the original loan to be a rehab or construction loan. These loans are interest only for 3 to 6 months and then the bank will turn this loan into a conventional loan after the work is done. The bank will also let you pull money out at the time they change the loan over. If you go to a community bank or small regional bank this is easier to do.
Don’t forget when you go to the bank have everything you can together for the bank to see. Take all documentations and comps. Show the banker what you want to do and why and how it works.
Posted by Ed in Chicago on July 12, 2001 at 23:26:06:
Here is my situation; I am buying several houses from an investor in northwestern Indiana. These houses need some work; however, I am able to purchase them no money down from the seller. My plan is to rent them out. What my problem is right now is I need to take some money out of the first couple of houses but I cannot find a lender who will let me refinance after the work is completed. The house I am working with now comps out at about $60K; I would like to take a mortgage of $45K against it. My credit isn’t stellar but it isn’t terrible either.
My question is are there people who would buy the house for a fee and lease option it to me where I can buy it back at a later time?
If this sounds crazy let me know why or if anyone has any suggestions please let me know. Thanks.