financing . - Posted by Kenny. DeBusk

import · December 18, 2002, 10:46am

Posted by Kenneth on December 20, 2002 at 10:29:41:

Thanks again Tim . I will look a little further into it,just to be absalutly sure . Although i doo feel quite fomfortable about it, but DO NOT want to over estimate . The total asking price is $25,000, but i figured $23,000 was a SAFE amount to count on for an acceptable offer. Even IF the properties only sold for a total of $100,000 , that ( to me ) would be a good investment. After all, the work ( to me ) is minimal, but for anyone else , it will be costly, very costly. I am thinking , this is the reason they are still for sale.

import · December 18, 2002, 10:46am

Posted by Kenny. DeBusk on December 18, 2002 at 11:46:40:

Where can i find financing to get started in property investments? I have 2 that i can get for $43,000 , but would like to get an extra $7,000 for additional work payments and such while they are relisted.
The houses have assesed value of over $93,000 , and will be over $100,000 after very minimal updates/ clean up.

I have searched and SEARCHED but my credit is horrible, especialy after recieving a counterfiet cashiers check for $9,200 , that put me in the hole $1,600+ .

I have done a lot of research on the properties and self appraisal in consideration to the surrounding homes, and feel totaly asured of the value of these homes.

Problem is, i can’t seem to find a lender in this area , even though their risk would be none, considering the value of such properties.

IF ANYONE can help. PLEASE CONTACT ME, A.S.A.P. .
Although i believe these homes should by all rights already be gone, i also feel they are a blessing and meant for me , to get a good start in this area.

If you could see to helping an 18 year carpenter get started in the real estate investing field , i am sure you wont be disapointed.

I am hoping to find a lender i can work with for all future investments , as i seem to be finding MANY fantastic deals, some due to sellers age, and others due to sellers financial situation and / or ambition to do simple clean up.

Thank you for your time and consideration.

I look forward to hearing from you.

import · December 20, 2002, 9:42pm

How’s it Coming? - Posted by Bob

Posted by Bob on December 20, 2002 at 22:42:26:

Hey Kenny, I know you’re busy scouring the internet for Hard Money Lenders and by now you’ve probably submitted a hundred online request forms and called a hundred lenders. Have you gotten any positive responses?

Is there any possibility of the seller financing? Or doing a lease option here?

What about putting together a short proposal and giving it to some settlement attorneys and asking if they know of anyone who would be interested in funding the deal for a handsome return? An attorney may surprise you and take you up on it himself.

Just trying to think of all the angles. For some reason out of all the posts here, yours keeps coming to mind. I guess it’s because, even though I don’t know you, you seem to have passion to make this work.

Good Luck,
Bob.

import · December 19, 2002, 12:06pm

Re: financing . - Posted by Todd B (Va)

Posted by Todd B (Va) on December 19, 2002 at 13:06:29:

Get them under contract. use company name Kenny debusk and associates. Get 60 days to close. Find a money partner to split the deal with. Lots of people have money but no time, and would be happy for half of a slam dunk deal.

I did my first deal this way, got a real estate agent to partner with me. He put up the money and took care of the selling. We each made 15k profit.

Priority # 1. Get it under contract!!!

Todd B (Va)

import · December 18, 2002, 7:27pm

Re: financing . - Posted by Bob

Posted by Bob on December 18, 2002 at 20:27:54:

Kenny, if you’ve got a good deal, and you want it bad enough, anything is possible.

Go to a search engine, like google.com, and type: hard money lender (in the search box) and click search. You will find pages and pages of links to many hard money lenders. They all have very different requirements and guidelins, some only lend over 100k, some loan as little as 10k. So, shop around, I’d skip over any that want an up-front fee for looking at your loan becuase there are many that will give you doable or not-doable opinion without a fee.

There are a few websites you’ll find that are match-maker sites, so if you see two using ‘lending-tree’ you probably don’t need to try both, since they’re going to send your loan to the same place. Also, some will state where they do business, and some are nationwide, before you begin with any one of them, make sure they can do business in your state. By the way, what state are you in?

Your experience in this field should be an asset. Id also suggest you put togther a ‘plan’ of the project including the figures and how much you need from them. Also include a resume that proves how capable you are of doing this. Even if they don’t ask for your plan, it will benefit you by just putting it all on paper.

Good Luck, Please report back and share your success story with us!

Bob.

import · December 18, 2002, 5:38pm

Re: financing . - Posted by James Strange

Posted by James Strange on December 18, 2002 at 18:38:26:

Most lenders will not even look at lending on a property for less than 40K to 50K. With your credit a bank is going to take a pass.

Your only hope is to find a local Hard Money Lender. Or have the owner cary the note with a one year pay off.

import · December 18, 2002, 3:18pm

Re: financing .residential loan, as is or fix up. - Posted by Kenny. DeBusk

Posted by Kenny. DeBusk on December 18, 2002 at 16:18:22:

The cost to do the work to these properties is VERY minimal, and inexpensive, and ALL the labor is in my field of knowledge. 18 years worth, but still can’t seem to get any positive responses .

Can anyone tell me where to find the responses to my original written question, or even the question on this website ?

Thanks.

import · December 18, 2002, 12:30pm

Hard Money - Check Archives (nt) - Posted by Marc

Posted by Marc on December 18, 2002 at 13:30:31:

nt

import · December 19, 2002, 2:01pm

Re: financing . - Posted by kenny

Posted by kenny on December 19, 2002 at 15:01:40:

I had been debating on this also,but don’t realy know anyone . The real
estate company who is handling these are only doing the " PRE APROVED for
loans."

Kenny. I figured the property value itself would help to do a " no income
verification" loan.

Thanks for trying.

Health and success
to you and your family
peace, love, and joy,
T O A L L ! !

import · December 19, 2002, 2:06pm

Re: financing . - Posted by kenny

Posted by kenny on December 19, 2002 at 15:06:50:

I have searched ALL these type’s of places i could find. And yes, i am hoping my experience in this field will be a serious asset.

I WILL DEFINATLY POST MY SUCCESS STORY, and gladly help any who need it.

import · December 19, 2002, 2:11pm

Re: financing . - Posted by kenny

Posted by kenny on December 19, 2002 at 15:11:27:

I WOULD BE WILLING TO DO A one year payoff with ANY lender. But the sellers
are not willing to carry , at all , for any length of time.Can anyone refer
me to the right place ??? LTV is only 50%.

We have 2 house which are available to us, for $43,000,
( 1 for $20,00 0r less, and the other for $25,000 or less ).
The tax assessment for these are $93,070 ( $,38,530 and $54,540 )
According to the surrounding property values,
they will be relisted at over $100,000,( $54,540 and $70,000 )
after minimal work.

I am an 18 year veteran carpenter.
My credit is not so good ( especialy after recieving a $9,200 counterfiet
cashiers check this year from a motor vehicle sale ),and we have no money to
put down, BUT are
hopeful the current property value itself will help with this, as the loan
to value ratio would be below 50 %.
We need $45,000 or less to close, but would like
to have an extra $7,000 for beautification and the little rehab there is.

No payments for a set amount of time( 3-6 months ) would also be a plus .

We are looking for a maximum loan period of 24 months, but a 30 yr over all
( to keep payments down ), with a balloon in 12-24 months,
as we intend to clean up our credit and re-finance,and/or relist.

I am looking forward to hearing from you,and am flexible on
terms and conditions of loan.

My annual income is $10,000 average, i am 38 yrs old with not good credit.

Thank you for your time
and consideration .

Best reguards to you
and your loved ones
this Holiday season
and ALWAYS !!

Our love and prayers to you and your loved ones !! GOD bless you all !!!

Kenny. DeBusk.

P.S. Do you know “the reason for the season”?

Property is located in Iowa.

import · December 19, 2002, 7:20pm

Any Luck Yet? - Posted by Bob

Posted by Bob on December 19, 2002 at 20:20:20:

Kenny, Just checking in with you… have you had any luck yet? I know you’ve been working hard at it, you’ve got to much drive to give up. Hang in there and keep us posted.

Bob.

import · December 19, 2002, 6:51pm

Re: Verify numbers and buyers in the area… - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on December 19, 2002 at 19:51:10:

… The real estate company who is handling these …

This is what I meant in the message I posted a bit ago about financing. If the agent is putting these at this low of a price and the work needed is very minimal ($3,500), you have to make sure your numbers are good numbers and not inflated.

import · December 19, 2002, 6:47pm

Re: financing . - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on December 19, 2002 at 19:47:03:

… My annual income is $10,000 average,

… I am an 18 year veteran carpenter.

Kenny, are we missing something from this picture? With 18 years of experience, I am sure you could make more than $4.80 per hour, if the calculations are correct; by working in another city/county/state/country.

About your question(s), you might want to keep the deals separate now that we know that they are 2 different transactions.

House #1 Price: $20,000
House #1 Repairs: $3,500
House #1 FMV: $54,540
TaxAssess #1: $38,530
House #1 ARV: 43%

House #2 Price: $25,000
House #2 Repairs: $3,500
House #2 FMV: $70,000
TaxAssess #2: $54,540
House #2 ARV: 41%

You have to get the FMV correct on these, and maybe you have, but it wouldn’t hurt to give them a once over again to insure you are dealing with good numbers. Tax assessor’s value may or may not have any coorelation with the FMV of these properties and I only posted them to make it easier to read separately and to illustrate their values. If your numbers are good, then financing may be had using hard money.

Now real hard money is supposed to be based on the deal, and not your credit, but you may find any lender willing to do a deal with you may want a credit check anyway as part of their doing business. A lender, no matter what type of financing, is probably going to want to know how you will pay back the money also. Your income from your posts shows about $800 per month in income, not much left for extras, and here you will be entering an committment with a lender to pay back the money and some interest on the deal.

Exit strategy? I think you are leaning towards reselling it after completing the rehab of very little repairs. If it is minimal, and these houses are already being ‘marketed’ to attract buyers, then what can you do to change this and get more money in the process through the profit of raising the price when you sell? If they are not currently being marketed, your numbers are correct, you have buyers willing to pay your numbers you have figured out; then you need to look for a hard money lender in your area, or one willing to lend in IOWA? as you have a deal here.

Check your numbers, make sure there are willing buyers at the price you are talking about, look for a hard money lender in your area, and you should be on your way.

import · December 19, 2002, 8:46pm

Re: Any Luck Yet? - Posted by kenny

Posted by kenny on December 19, 2002 at 21:46:07:

I’m hangin tough brother,HAHAHAHHAHAHAH.
Had a couple phone calls, and they are getting the ball rolling, so we’ll see . But nothing concrete yet.

And i will DEFINETLY let you all know how THIS success story comes out .

Thanks for the boost, drive is a good thing. LOVED you letter!! Thanks again.

import · December 19, 2002, 8:39pm

Re: Verify numbers and buyers in the area… - Posted by kenny

Posted by kenny on December 19, 2002 at 21:39:58:

The work is very minimal FOR ME. FOR YOU ( or the average person ) it would be in the $10,000 + range, as labor and experience will play a HUGE part.

I checked with the city assesers office, with these and their neighboring properties, and believe these to be fair numbers.

import · December 19, 2002, 8:32pm

Re: financing . - Posted by Kenny. DeBusk

Posted by Kenny. DeBusk on December 19, 2002 at 21:32:13:

Thank you for your advise Tim.

The numbers you have posted are right, BUT the tax assesment on # 1 is $54,540, and #2 is $38,530. all the other figures are right.

The low income is due to a work injury and the inability to phisicaly due this type of work on a FULL time basis. Although , working on my own home, i can work and stop , through out the day, eve, night, and so on, as the periods of stop and go time are frequent.

Thanks again for the advise.

And yes, i am looking at the resell .

import · December 20, 2002, 12:17am

Re: Verify numbers and buyers in the area… - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on December 20, 2002 at 01:17:51:

Be clear here, tax assessor numbers may not mean anything relative to the FMV - Full Market Value of the property. You need to concern yourself with the FMV of the property through actual sales of properties like the ones you are looking at. The only thing tax assessor values mean in this context is how much the local taxes will be based on their assessed value.

A real estate agent would/should do a CMA on the property to give to the seller. This CMA will give some weight to what the seller is willing to sell the property for and a guess at a probably sale price. The agent that has the listing now, and his/her broker overlooking the deal, are somehow giving an impression to the seller that the house is only worth what it is listed at right now. Why haven’t they sold yet? Are your repair estimates correct? Do you really have comparable property sales to determine FMV or are you relying only on assessed value that may not mean anything?

I don’t want you to pass on a deal and I am not trying to talk you out of it, but I am suggesting careful look at those numbers and if all is good; check locally for a hard money lender to finish it all out. The hard money lender can provide you with the cash to purchase and money for the rehab so you will most likely be able to get that extra $7k you need for the work to be done.

I don’t know if you thought of this or not though, but if the $43k is the number being offered to you, negotiate for lower that this and you gain even more in the deal.

import · December 20, 2002, 9:32am

Re: Verify numbers and buyers in the area… - Posted by Kenneth

Posted by Kenneth on December 20, 2002 at 10:32:49:

I trhink i had a typo in the last message. It should say $43,000 not $23,000.