Posted by Zidzi on July 11, 2001 at 23:49:24:
As long as you are buying the properties from the homeowner their reason for selling is not the Lenders’ business. I mean, the seller could be selling because he is moving to the mountains, the beach or Nyalgunga.
I have yet to see a 1003 that requires the seller’s reason for selling; so don’t look for lenders who finance a particular situation. In doing that you limit yourself. It is you, the borrower, that the Lenders are concerned about: your credit, the collateral and your capacity to repay the loan (the 3 Cs).
Mary, you have obviously carved a nice little niche for yourself in which you can do very well if you had additional or unlimited financial resources.
My two cents worth:
Find a small local Bank and start developing a relationship with a view to obtaining a Working Line of Credit that you can use to purchase the property, fix it and once you sell you pay the money back into your Line of Credit so that you can use it for the next couple of deals. Of course when you offer to pay cash and close in two days (to give yourself time to do the title work) you should get an even better discount.
Buy several properties and quickly flip them to other investors for some quick cash to build up some cash reserves.
Buy and instead of worrying about fix-up funds lease option to homebuyers and take the down payment part cash and part sweat equity and that should give you some cash upfront and some cashflow, reduce your turn around time and eliminate the need for fix-up funds
A member of our REI club does the kind of loans you are looking for but they start at $100000. When you have a moment do email me and I will share what I know for lower amounts but no less than $75K for the total funds (the very small loans are not popular because they take the same amount of time and effort to put together as do the larger ones and earn them considerably less)
Look out for the next Lenders’ Seminar hosted by Ed Garcia and Terry, and attend it. It will take years off your learning curve
You’ve got it made Mary, so go do it on a big scale and remember to post your success story here.