Posted by Ed Garcia on August 13, 2000 at 19:26:30:
The difference is, Hard Money lenders usually get their funds from the private sector (Private Investors).The paper work or packaging is minimal and they’re usually between 11 and 15% and 5 to 15 points.
Sub-prime loans are packaged and sold to Wall Street through companies such an New Century, BMC Mortgage, WMC Mortgage just to name a few. The costing is 91/2 to 121/2 % and 3 to 5 points.
I put a little bigger spread in the differences in rate and points than I usually do because it can vary in different parts of the country.
Posted by Ed Garcia on August 13, 2000 at 14:31:02:
Yes there is. In most cases when a person has credit problems, they are embarrassed and like an ostrich, they just want to put their head in a hole and hope it goes away.
Jay, that’s not the answer. You have to start immediately, by going out and reestablishing your credit. There are many ways you can accomplish this task.
Go out and buy a small purchase such as a new television or appliance and put down 50%.
, You can deposit 500 dollars in the bank and then borrow 400 dollars, using the 500 dollar pass book as collateral.
You can go to http://www.creditinfocenter.com/ when you get there, check out [Rebuilding Credit], [Repair Credit]. In Repair Credit, you’ll find a Credit Repair Kit which gives you instructions on how to contact the credit beau, as well as some generic letters to send to them to remove derogatory credit.
Jay, I can tell by your posting, that you feel like that ostrich. Don’t let it get you down or discourage you. The lending community is forgiving, within 2 years you can make a come back, with a little thought and work, you can recapture your good credit standing.
Meanwhile, you still can do deals, it will be more costly, which is to be expected.
Here are 8 ways you can do a deal NOW.
get a 50% Partner or investor with good credit
Seller Carry Back
Sub-prime financing at 70 to 75% LTV depending on your circumstances and what lender you use.
Combination of Seller Carry Back and Hard money
Combination of Seller Carry Back and Sub-prime
This is just a sample of things you can do. DON’T GIVE UP?..
Your bud credit? Is that some kind of alcohol card? lol JK!
Sellers don’t care about your credit, and if they do, they probably aren’t the kind of seller you should be talking to.
The people who do care about your credit are the bad, mean, nasty institutional lenders. Who needs them?
Just buy your properties “subject to” or with a lease/option and away you go! No credit or income checks, who cares if you have a bankruptcy? All they want to know is if you can solve their immediate problem!