Posted by Bryan on July 08, 2001 at 01:44:27:
I see a great opportunity with this deal. Personally, if you can’t come up with the money just flip the property for a quick sell to an invester. You should still be able to make a good profit. At least you want loose the deal all together. Good luck !!!
poor credit/need financing - Posted by jkf
Posted by jkf on July 06, 2001 at 12:43:43:
A mortgage company preapproved me for a loan and took 30-40 days to tell me I needed to have at least 5% of the purchase price seasoned in the bank for 60 days. Of course I do not have 5% in the bank. My seller has moved out of his house into a apartment thinking I would have purchased the property by the end of June. He ended up paying his monthly mortgage and his apartment rent. He is ready to find a new buyer asap. If I could come up with the cash before a new buyer does, he would most likely still sell to me. As a matter of fact he is more flexible now than he was before. The house was appraised for $77,000. and at this point he will sell for $50,000. or even lower. The payoff on his mortgage is $30,000. I have poor credit and no money in the bank. Would someone please help me get some financing. I think his main concern is not being able to make both payments next month. Also, time is running out for him because he has to sell his house by October 2001 or his house will be auctioned due to a divorce settlement. I have very little reaction time, please help. Also we both signed a purchase contract, could he still sell to someone else with us having a contract.
Thanks for your help in advance.
Re: Oppertunity is KNOCKING… - Posted by Ed Garcia
Posted by Ed Garcia on July 07, 2001 at 11:02:00:
JKF,
Opportunity is KNOCKING and you can’t hear it.
Since he has to make TWO payments, step in NOW and tell him you want to close the deal NOW and NOT have him make any more payments. Have him sell the house to you on a Wrap-around mortgage.
A Wrap-around Mortgage, is when the seller creates a new loan, encompassing their existing loan or financing, should they have a second mortgage as well as a first.
Example: The sale of a $50,000 property with a -0- cash down payment by the buyer and an assumable senior loan balance of $30,000, creating a $20,000 shortage, can be financed by the seller who would carry back a new wraparound loan for $50,000. This
wrap-around would require the borrower to make the payment on the $50,000 while the seller would retain the responsibility for making the required payment on the undisturbed existing $30,000 loan.
If he’s not comfortable doing this loan long term, then ask him to finance you for 1or 2 years, or what ever time you think you need until you’re FINANCABLE. Remember, in a year, you’ll have a years worth of seasoning, and can do this as a re-fi with no down.
If your numbers are right, you’d be at 65% LTV which would be a no brainer to re-fi even with slow credit. This will also buy you time to clean up your credit.
Get pumped up JKF because now you’re a man with a mission. Go CLOSE this deal. If you’re in doubt or afraid, call me this afternoon at (909) 944-0199. I’ll either give you the tools to close it, or close it myself. I’ll be available after 1:p.m. California time.
Ed Garcia
Re: poor credit/need financing - Posted by Zidzi
Posted by Zidzi on July 07, 2001 at 05:30:49:
I see a couple of ways to do this. Do email me directly and let me try to help you structure it and present it for funding.
Being a student of Ed Garcia’s has great advantages.
We can do this.
P.S. Just a thought!
Whatever you can do
Or Dream you can
Begin it
Boldness has genius
Power and Magic in it!
…Goethe…
Re: poor credit/need financing - Posted by Bruce Lawson
Posted by Bruce Lawson on July 06, 2001 at 17:04:20:
There are many ways to purchase property with less than perfect credit,I would suggest you take a look at Ed Garcia’s nine ways to deal with bad credit.
Since the seller is in a divorce you maight want to approach him with a L/O or Land Contract deal, that may not be an option since his situation is as it is.
Hard Money seems to be the best way in this case since you need to make a move quickly and it seems the seller is motivated to sell.
This site is full of excellent advice from a variety of disciplines from the real estate investing world, read through the post and look at the archives I am sure you will find some good stuff.
You can contact me if you care to discuss credit issues and credit reporting, you would be surprised to know what the credit reprting agencies have been getting away with for thirty years, NOW THERE IS SOMETHING THE CONSUMER CAN DO ABOUT IT.
Sincerely,
Bruce Lawson