"Creative" Lenders Needed ASAP! - Posted by Vince

Posted by Ed Garcia on January 17, 2001 at 24:59:52:


You don’t tell us what state you’re in. There is no question that if your numbers are right, you have a deal.

I’m going to show you (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 ways 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.


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 work shop, Terry Vaughan covers this, and shows you how to discount it and market it.

Vince, I hope this post is helpful to you and will encourage you to stay with it. The only way you won’t be successful in this business, is when you stop trying.

Ed Garcia

“Creative” Lenders Needed ASAP! - Posted by Vince

Posted by Vince on January 16, 2001 at 23:29:51:

Hello again all.

Just wondering if anyone knows where I can find a lender who can work relatively quickly, who looks at the “income” a property generates as well as the value.

I have a deal pending where the cost is $35k, the value is around $60k and the yearly net income from rents is $12k. I don’t think it takes a genius to figure out that these numbers look nice.

Are there lenders who surf this board who would be willing to talk with me about this and other deals like it that I have pending? I’d like to become aquainted with 6 or7 lenders like this so that these deals can be put to bed quickly.

My FICO isn’t great due to no credit activity (I’ve been a bit of an all cash person for most of my adult life). However, I seem to have a knack for finding properties with large amounts of equity built into the deal.

Any helpful thoughts would be much appreciated. I’m going for it BIG TIME and NOTHING’s going to stop me!!! Arrrggg!!!

Thanks in advance,


P.S. Can you tell I’ve read Tony Robbins? (smile)