Posted by Kirt on December 18, 2002 at 13:20:45:
I am not sure if this would work for you, but have you considered refinancing one of the houses that you have already rehabbed. If you bought low enough, and the appraisal of the rehabbed house is worth more, then refinance it at the new appraisal value, and pay off the old mortgage. The equity should come out as positive cash.
Help - I can’t get to my equity - Posted by Leah
Posted by Leah on December 17, 2002 at 14:36:33:
I have a unique property with two houses on the lot in Napa Valley, CA that’s worth at least $900,000 and I only owe $289,000. I’m currently unemployed because I’ve been remodeling the houses full time. I need to access the equity in order to complete the front house, the back is done and it’s beautiful. Once complete, I’ll either rent (total income would be ~$4,000 for both), or I’ll sell.
I’ve been working with a large mortgage co. that’s been giving me the run around because the appraiser came up with a value of $595,000 saying there was work to be done. Of course, I’m remodeling the 2 bathrooms and re-shingling the exterior, prepping for a paint job. The loan company now sees it as a possible depressed property and they’ve had me waiting for funding for weeks now.
I can’t wait any longer and am wondering how to go about finding hard money lenders that would lend to me, probably a second. My credit score is around 605, and as I said no “job.” How do hard money lenders work in this type of situation? Are they fast? I’m so frustrated by having a property that’s worth so much, has so much potential, but I can’t seem to pull a dime out of it.
BTW, my short and long term goal is to flip properties (fix and sell) nothing on such a grand scale as this one though! I’ll either use the equity on this property to fund my purchases - if I can ever get to it, or I’ll use the money from the sale of the property. Not sure yet, if getting equity out is such a problem I may just have to sell.
Any ideas or suggestions are much appreciated.
Leah.
Re: Help - I can’t get to my equity - Posted by mark
Posted by mark on December 19, 2002 at 10:23:28:
I would put out a for sale sign while you work on getting a lender.
How did you arrive at the $900,000 value?
If you got the loan for a % of the $595,000 could you finish the house?
I think that you need to sell the house anyway cause $4000/month won’t cover the payments and you would have a cash flow loser. The question is whether to sell now and the depressed price or whether you can get a loan to finish out and make pretty.
You could potentially bring in a partner.
You only mentioned one person who was giving you the run around. I would make 20 calls tomorrow to lenders and see what programs are available.
These are different ideas.
Re: Help - I can’t get to my equity - Posted by mark
Posted by mark on December 18, 2002 at 20:13:51:
I would put out a for sale sign while you work on getting a lender.
How did you arrive at the $900,000 value?
If you got the loan for a % of the $595,000 could you finish the house?
I think that you need to sell the house anyway cause $4000/month won’t cover the payments and you would have a cash flow loser. The question is whether to sell now and the depressed price or whether you can get a loan to finish out and make pretty.
You could potentially bring in a partner.
You only mentioned one person who was giving you the run around. I would make 20 calls tomorrow to lenders and see what programs are available.
These are different ideas.
Re: Help - how much can you expect?!!! - Posted by Matthew
Posted by Matthew on December 18, 2002 at 12:33:24:
Leah-
I am trying to be synical but what do you expect when you ahve what you ahve and the lender KNOWS it! the have a client NO JOB - no way to pay! and a “unique” hard to appraaise and resell in need of repairs “home”
what do you think we as lenders do- MAGICK.
your best bet is with a hard money person in your area that understands the local market and is willing to give you a loan with no way to GET PAID BACK.
on my numbers I come up with based on the lenderrs appraisal you might get 385K at 16% , but that is a big maybe. try getting a job.
Your mission statement? - Posted by Leah
Posted by Leah on December 18, 2002 at 17:07:28:
Funny you say this when on 7/23/02 you stated the following to a gentleman on the Russ Whitney board:
“Robert-
The lending business is very diverse. I have specialized investor and self-employed loan programs. no seasoning is prettty common in my loans.I have 95% investor purchase money. 100% construction loans for res. and commercial. I found a big problem when I was with the banks and they weren’t attending to the emerging entrepeneurs who need special no income loans, this has been my mission statement for over 6 yrs.
drop aline anytime about what and where your properties are.or try me at 1-866-561-8114
Matthew G
Challenge Mortgage”
Hmmm… has your mission statement changed?
Re: Help - how much can you expect?!!! - Posted by Frank Barnett
Posted by Frank Barnett on December 18, 2002 at 13:14:22:
if you are looking for hard money lenders- one great place to check is :
http://www.nationalmortgagenews.com/grapevine/