Hard Money for Personal Home Do-able? - Posted by Karen McCall

Posted by Jimbob on October 20, 1998 at 09:51:52:


If the actual market value of the property is $128,000, you might just be able to squeak this one through. Typically hard money lenders loan up to 65% of the market value, sometimes 70%. If you locate an “equity” based lender, chances are he will loan you the money if you can fog up a mirror with your nose.

Be prepared to pay up to 10 points, and 12-16% interest on the money, and you may also have a short term balloon payment like 1 year. But hey, if it’s a great deal on the house, thats cheap compared to the profit you can make. If I were you, I’d buy it with hard money, spruce it up really nice, then sell it for a profit.

My Two cents…


Hard Money for Personal Home Do-able? - Posted by Karen McCall

Posted by Karen McCall on October 20, 1998 at 08:59:22:

Just found a house in Fort Myers Florida, that my husband and I would like to buy as our personal residence, due to some financial difficulty, in the last couple of years we don’t qualify for a traditional mortgage without a huge amount down (which I’d rather save for REI) and the home is an estate sale so there is no way that they will Owner finance. The good news is there is a good deal of equity in the home (it is worth between 112-128K, the sales price is $79,900 sellers paying all closing). Is there a hard money lender who would be willing to write a mortgage with no money down on my part?

Re: Hard Money for Personal Home Do-able? - Posted by Mr Donald (NORVA)

Posted by Mr Donald (NORVA) on October 20, 1998 at 17:24:14:


Ditto Jimbob. If it’ll appraise even at the low end ($112K), then you should have no problem with a 70%, 75% or even 80% loan.

Mind you, your interest rate may vary, but at least you’ll grab this deal, and then you can refi with a few months seasoning at a decent rate.

Mr Donald.

Re: Hard Money for Personal Home Do-able? - Posted by phil fernandez

Posted by phil fernandez on October 20, 1998 at 09:58:31:


I would not automatically assume that you can not get owner financing on this deal. First check to see how many heirs are involved. You can do this by looking at a copy of the will at the probate court. This is public information.

As an example if there were three heirs, maybe one would consider taking their cut in the form of a second mortgage. You might sell them on the fact that they will be earning more interest on their money than if they were to put it in the bank. Or give that one heir a mortgage secured by another property that you own, then get a first on the estate property to get the cash for the other two heirs.

There are many possibilities and twists that might work here. Just don’t assume because its an estate sale that you need to cash out the heirs.