Posted by Clair-MO on January 08, 2004 at 22:29:21:
JCR, Why worrying about it? What you doing analyzing what the lender is going to accept or not…please don’t do that because analysis brings on paralysis! Where your fears is going to get the best of you and you won’t be doing anything in real estate investing, Is that your objective? I don’t think so!! Be sure your name is on the deed along with the money investor’s name.
How can I do this?? - Posted by JCR
Posted by JCR on January 08, 2004 at 21:22:38:
I am trying to figure out how to make this work - I have an opportunity to basically buy a house for someone under my name. This person has lots of cash but has terrible credit. He is willing to give me huge $$ for down payment and even a bunch of money up front for rent.
The problem I see is how can this be done if the bank I will get a loan from is going to want to see how I got the $$ for closing costs and that big down payment.
Suggestions please…
Thanks,
JCR
Re: How can I do this?? - Posted by Tbyrd
Posted by Tbyrd on January 10, 2004 at 12:40:08:
Sell him something for the amount of the downpayment.
I did this w/my first house. I sold my father my car for the amount of the downpayment, had the clerk @ the DMV make a copy of the title/bill of sale, turned immediately around still @ the DMV and bought the car back from Him for a nominal fee. The clerk handled both title changes in a matter of a few minutes and I believe it cost me $15 in fees.
The bank just wants to see some kind of paper trail.
You could do some kind of “work” for him and let him pay you the amount of the downpayment as “service fees”
or “earned income” or “commissions”.
Just a few ideas for thought.
Hope it helps.
Re: How can I do this?? - Posted by Neil
Posted by Neil on January 09, 2004 at 22:03:05:
As long as the money is in your accounts before you apply for the mortgage you are fine. They will ask to see all the bank/investment acct info. If they see money on your statements, you’re fine. If they don’t, they’ll start asking where you’re going to get the money from.
Re: How can I do this?? - Posted by Randy (SD)
Posted by Randy (SD) on January 09, 2004 at 08:27:15:
Looking for a lender that does not require the down payment to be seasoned or sourced will solve this problem.