Posted by Chuck (AZ) on July 02, 2001 at 09:44:28:
- When you deal goes thru, use your profits to clear your credit.
financiang!!! - Posted by Desperate for advice?
Posted by Desperate for advice? on July 02, 2001 at 01:34:02:
I am currently seeking a 1 or 2br condo or apartment for rent in the Inland Empire area of Southern CAâŚHow would I go about finding a rental with poor credit? are there any creative financing techiniques??? lease option perhaps? I have gone through several large apt. and condo complexes and most have Mgmt companies that screen you & your credit situtionâŚthis is where iâm having a problemâŚI have a forclosure, lates and collectionsâŚgot involved in a biz. deal that didnât go wellâŚand am in the process of fixing my creditâŚdoes anyone have any advice
Re: financiang!!! - Posted by Ed Garcia
Posted by Ed Garcia on July 02, 2001 at 09:03:48:
Desperate,
Here are 9 ways to do a deal with bad credit
Now before I give them to you, I want you to know that Iâm really supportive of learning deal structuring. The first thing you need to do is, âinvestigate your dealâ to know what I call (where the bodies lie) another words what is the sellerâs 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 Iâve mentioned.
(1) PARTNERHIP: Find a 50/50 partner. It donât have to be 50/50, it can be what ever you can negotiate. The partner doesnât even have to have money, just good credit.
(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, youâd 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 âSandwich Lease Optionâ. Jim, Iâm 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 doesnât exchange hands, many times the seller doesnât 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 wonât 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 Coâs and I always recommend seeking them out. National oneâs 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.
Desperate, Since youâre in the Inland Empire, I can do number 5 for you. I hope this post is helpful to you and will encourage you to stay with it. The only way you wonât be successful in this business, is when you stop trying.
Ed Garcia
Re: financiang!!! - Posted by Bruce Lawson
Posted by Bruce Lawson on July 02, 2001 at 04:59:19:
Your situation is not uncommon there are many investors faced with the same cicumstances. There is good news, Yes there are various creative ways to fund a deal.
Check back in the archives and review Edâs nine ways to deal with Bad Credit, Ed offers some very useful ideas.
L/O is definitly one way to go.
Do not get down because of your present situation I can help you with the credit information, contact me and I can tell you some things that will help you to not get discouraged. Remember repairing less than perfect credit requires some time, I am sure it did not get damaged over night.
Sincerely,
Bruce Lawson
Re: financiang!!! - Posted by JC
Posted by JC on July 05, 2001 at 18:09:34:
ED: I BOUGHT A HOUSE AND SOLD THE HOUSE IN AN AREA OF JOPLIN BECAUSE THE AREA WAS A TARGET AREA FOR MUNCIPAL
100% FINANCING TO MY BUYERS, THE LENDING RATIOS 36%/41%
MY BUYERS RATIOS ARE 14%/36%, BANK SAYS NO BECAUSE
BUYERS FICO SCORES ARE TO LOW ONE HAS 562 SCORE THE OTHER HAS 510 SCORE, WHAT CAN I DO; I ARRANGED WITH THE OWNERS OF THE PROPERTY TO HAVE FULL ACCESS TO REHAB PRIOR TO CLOSE OF ESCROW:
THIS IS A DOUBLE ESCROW DEAL, AND THERE ARE 3 OTHER DEAL DEPENDING ON BORROWERS CREDIT APPROVAL, I NEED SOME HELP. DOES ANYONE HAVE ANY IDEAS
Re: financiang!!! - Posted by Art
Posted by Art on July 02, 2001 at 10:58:40:
Thatâs a great post ED//
I live in Ontario CAâŚ
are you concern abouth the seasoning issue?
I want to get in to RE doing some flips to began withâŚ
and also need the address to youâre bussiness if posibleâŚ
thanksâŚ
ART.