Posted by Bill Gatten on November 08, 1998 at 17:46:20:
Dan,
Listen carefully, this a two step approach:
Number one - Read Karp’s post one more time.
Number two - Run a newspaper ad (Business Opportunities section) for an investor who will make a 65% loan on a property appraised at $??.??). If there is a mortgage rep out there who can do it, they’ll call you (the good ones monitor the Bus. Ops. section everyday, looking for business… or if they don’t, they ought’a).
Bill
HELP!!! - Posted by Dan
Posted by Dan on November 05, 1998 at 17:17:34:
Background:
My partner and I have reinstated 6 homes just before they went to foreclosure. Before we get the owners current on their back payments, we have them sign the deed of the house over to us. They then make payments to us and we, in turn, pay their mortgage company. After approx. 30-60 days, we will refinance the house into our name and pull out some cash from their equity as our fee. After 6 months the owners, providing they make their payments on time, can qualify to refinance their house back into their names.
Problem:
We have yet to succesfully refinance any property. Since we are doing a “Non-Owner Occupany” refi with a percentage of cash out at closing (our fee) we are finding it very difficult to locate a mortgage company that will do these types of loans. Mortgage companies have told us that it is very difficult to find investors that will participate.
Question:
Does anyone know any investment companies that do non-conforming loans such as “Non-Owner Occupancy Cash Out Refi”?
1-800 eschew obfuscation.com - Posted by karp
Posted by karp on November 05, 1998 at 20:39:42:
Ugh. I wanna be diplomatic here but I just can’t.
What a crappy way to do this sort of deal.
I am a lender and I know why you can only get 65-80% of what you need. But that’s not the point. The point is you are doing this whole type of deal in a really cumbersome fashion.
But first a message from Somebody other than me:
PLEASE BE ADVISED THAT YOUR STATE MAY CONSIDER THIS TRANSACTION A “LOAN” AND IF YOU ARE SWIPING TOO MUCH EQUITY YOU MAY BE BREAKING USURY LAWS.
Having said that, repeat after me:
Step1) they quit claim to you, you get their loan current.
Step 2) You lease option to them for a period of say 180-360 days, your spread each month pays a good return on your funds you used to get their underlying loan current.
Step 3) They exercise and buy it from you for a higher price- bingo there’s your profit. OR they don’t you kick em to the curb and sell the house.
BOOYAH!
karp
aka Karl Hartley
Re: 1-800 eschew obfuscation.com - Posted by Dan
Posted by Dan on November 06, 1998 at 07:51:28:
Thank you for your quick reply.
The properties we invest in have enough equity that even if the loan is only at 65% we still make a nice return on our investment.
Please advice.