Posted by Edwin on August 06, 2008 at 03:46:15:
To hell with most hard money lenders. I’d cultivate a loan pool from friends and family before I ever went to those ripoff lenders.
Need help lining up financing on Duplex - Posted by Brandon ( IL )
Posted by Brandon ( IL ) on August 05, 2008 at 17:51:27:
Have located a duplex locally that was recently forclosed, the bank just put the property on the market and is pricing it to move fast. I found the listing on Realtor.com, it just went up a week and a half ago, and after looking at it my realtor literally asked me to let her know what my intentions are because she may want to have her husband buy it if I don’t.
Essentially it appraised last year for around 75K and they are currently asking 42K. It needs almost no repair, just rehabbed by the poor guy who got forclosed on within the last couple years, both units ready to rent out with 2BR, 1 bath, market rent being around $450 a unit.
Here are where the difficulties come in, I have crap credit, though my girlfriend is willing to let me buy it in her name if need be, though even then she has average credit. Essentially I need something along the lines of no/low doc, low credit requirements.
What IS in my favor is that I can put down %20-%25, or even %30 if it helps me qualify for something, of the total purchase price in cash for downpayment and as you can see above the cashflow and LTV is solid.
Just trying to see what my options might be an if there are any ‘secondary’ lenders that do work in Illinois that aren’t complete scams/ripoffs.
Thanks.
Re: Need help lining up financing on Duplex - Posted by brandoncbsre
Posted by brandoncbsre on August 06, 2008 at 09:16:41:
You have a better shot at getting a loan from a small bank that holds some of their loans. Hopefully you have already starting building a relationship by having a checking, savings, and past car loans etc.
Talk to the guy that does business/commercial loans…with 25-30% down they may give you a shot. Offer additional collateral if neceassary to get your foot in the door. After you do a few deals with a good small bank they may stop running your credit altogether. Mine didnt on the last deal I did.
Good Luck
Re: Need help lining up financing on Duplex - Posted by J Scott
Posted by J Scott on August 05, 2008 at 22:23:03:
Unfortunately, in today’s credit climate, you’re unlikely to find any traditional financing with low/no-doc requirements. You pretty much need a credit score of 720 to qualify the traditional route, with a 20% down payment.
That said, there are likely some hard money lenders out there who would be happy to help. While many care about credit score, there are plenty who are happy to provide funding to those with bad credit if the deal is solid enough.
The obvious disadvantage to hard money is that you’ll pay for it (higher interest rates + points upfront) and they loan terms generally require a balloon payment in 12 months or so. So, you’ll need a refi plan for a year from now.