Posted by Eight Eighteen on December 17, 2002 at 16:41:53:
TN
Opinion on a Deal - Posted by eight eighteen
Posted by eight eighteen on December 17, 2002 at 10:26:02:
I offered and the bank accepted $110,000 for 6 investment properties (2 duplexes/4 small homes). The owner is signing the deeds over to me at closing. Value of all is approx $300,000. I have been approved at my bank for a portfolio loan (stated income/stated assets) at 10.75%. They are treating as a refi since the deeds will be signed over. Nothing out of pocket and the properties generate $3500/mo gross cash flow.
Here is the problem, the selling bank wants these off their books by Dec 31st or I loose the deal. My bank is saying they can’t get the appraisals, title searches, etc. done by then.
Any advice since I am still a novice and this is not a traditional deal?
Serious responses only, please.
Re: Opinion on a Deal; What State Are You In? - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on December 17, 2002 at 13:56:23:
What state?
Re: Opinion on a Deal - Posted by Kristine-CA
Posted by Kristine-CA on December 17, 2002 at 13:46:56:
I agree with Marc here. Given the room in the deal, you can afford to use hard money regardless of costs to get the deal closed. Call everyone in listed in your phone book. Try to find an equity-based lender that charges high interest, but not all the junk fees and pre-payment penalties, etc. They are out there. Many will go as high 65-75% of FMV as is. Don’t be surprised if the lender’s numbers are different than yours in terms of value.
I recently had a buyer that was stringing me along because he wanted to use funds from the sale of another investment property that was in escrow. When I threatened to take the deal away and cancel escrow he found just such a lender. I was amazed actually. This guy does his own inspections, writes his own trust deeds and walks his funds over to escrow. The title company was very familiar with his company and told me how fast he was.
I’m curious about what deal the bank will give you if you don’t close on it by end of the year. They will still need to sell it.
Let us know how it works out.
Sincerely, Kristine
Re: Opinion on a Deal - Posted by tyler
Posted by tyler on December 17, 2002 at 13:42:03:
If you near Charlotte, NC, call me. I’d be willing to assist if the deal is as you state. tyler
Re: Opinion on a Deal - Posted by Marc
Posted by Marc on December 17, 2002 at 10:45:02:
Have you attempted to contact a hard Money Lender, like Statewide Capital, or an of the others that run a banner on this site? You can use this as a short term solution until your bank can get through the red tape. If the numbers you state are correct, you’ll probably be able to get into a loan with no money out of your pocket, but you will lose approx 4 points in origination fees. You might lose some profits, but you won’t lose the deal.
This is a tight timeline, but most Hard Money lenders state they can close in two weeks or less.
Good Luck,
Marc