Posted by JUSTIN on July 11, 2001 at 24:45:54:
Hello all, Im having a bit of trouble putting my first deal together. I’ve found several houses that have plenty of equity hidden in them due to the houses having all of the right things wrong, nothing major. The owners are even willing to hold a mortgage so I can get the homes fixed up. However, I keep running into this forsaken term “predatory lending” with all of the local mortgage companies. They all require that the mortgages have 6 months of seasoning even for a construction/improvement loan. Is there any way around this. The whole idea is that I’ll obtain the property for a very low price, have it fixed up to raise the value and then refinance and cash out the seller. I’ll then rent them out or sell.
Does this sound reasonable and if so why won’t the mortgage companies work with them?
I hope this makes sense. Thanx in advance, Justin