prequals for investor lending - Posted by AWWmi

Posted by Ed Garcia on December 25, 2000 at 21:59:07:


Today we have no income verification type of loans available. If you were to purchase up to 4 units, of course you can use the income from the units. I feel a good mortgage broker can create a hypothetical purchase for you to know approximately how you’re going to do your deal, and give you a pre-qualify letter accordingly. That will at least let your real-estate broker know that you have a way to go.

Jim, I like to wish you and your family a Merry Christmas,

Ed Garcia

prequals for investor lending - Posted by AWWmi

Posted by AWWmi on December 23, 2000 at 19:47:07:

Dear Ed,
First, thanks for being such a generous gentleman with your time and most importantly, your expertise/honesty on this site. This is somewhat of a general question. Is it possible to prequalify for an investment-type loan for rehabs (ex: hard money loans)? Is that common practice with a mortgage company? Whats the average turnover time for the loan? I’m thinking about using this in terms of a quick closing, cash offer giving me more leverage in negotiating lesser money on property offers. I have had realtors and banks with REO’s that want some type of " prequal letter" to back the offers given. Don’t blame them. Sorry, more than one general question but I think you see what I’m getting at. Thanks in advance, Adrian Wallace West michigan

Re: prequals for investor lending - Posted by Ed Garcia

Posted by Ed Garcia on December 24, 2000 at 13:13:48:


Real-estate brokers want a pre-qual letter because they don’t want to waste their time, and banks want this kind of letter to verify that you have the ability to purchase their property.

Where you would get such a letter would depend on where you decide to finance the property. Many investors are of the opinion that hard money lenders are the only lenders that will give you “market value” after fix up, for a property that is purchased below market value. That’s not true. Many times a small bank can be utilized as you lender as well. If presented properly, you can convince the bank to treat the deal as a construction loan.

To get a pre-qual from a mortgage company for a loan should be a pretty easy task. They are accustomed to accommodating their borrowers with such letters. However if there are major fix ups on the property, a mortgage company will not be a good lender to use, due to they make loans on properties that show pride of ownership.

A hard money lender can give you a pre-qual letter under all circumstance, however cost can be prohibitive.

Adrain, I’d like to wish you and your family a Merry Christmas,

Ed Garcia

Ed? More on prequals please? - Posted by jim

Posted by jim on December 25, 2000 at 13:09:18:

Which comes first, the chicken or the egg? Real estate agents want prequal paper and lender says it depends on the property. (Each property is different of course.) Brokers don’t seem interested in presenting info without prequal, lender wants to see in-depth numbers. I will be depending on (4-unit) property to pay for it. Not my income alone. Thanks.