Posted by Private Lender on August 10, 2009 at 14:48:06:
What private lender is willing to take a 2nd ?
Financing - Posted by A Houston
Posted by A Houston on August 06, 2009 at 14:27:02:
I am trying to find financing for a single-family home that is valued over $125,000.00. I need $35,000 to purchase this home. I also have another property that needs $20,000 worth of impovements with a mortgage balance of $60,000. If improvements were made on this 2nd property, it would be worth close to $175,000. (It is a 2 unit property) I was thinking about the possibility of one loan or mortgage to purchase both properties. I would have cash flow for 2nd property, because I could rent the 2 units and move into the single family home. My credit rating is in the low 500’s (509). I also work 2 jobs with an income. Any advise would be appreciated.
Re: Financing - Posted by zerodownreos
Posted by zerodownreos on August 07, 2009 at 01:56:23:
With your credit a traditional loan doesn’t look like a real possibility. I would ask the seller of the single family property if they would consider owner financing or a lease purchase.
As for you existing duplex, I would look for a private investor to give you a loan for the $20k in repairs. If you are correct in estimating the after repair value of the property at $175k, it would be a relatively secure 2nd position loan for the investor since they are at about 50% LTV. With your cashflow, you can pay them a decent above market rate on their money.