San Antonio is too far for my HML contacts. I’m in the DFW area.
Barry’s advice is good. It is always wise to talk to as many money sources as you can. You never know, one or more of these bankers might love having a customer like you that can help them get rid of some of their “Non-Performing Assets”, especially if they are trailers. One of them may make you a sweet deal on your property and at the same time give you an incredible price and/or terms on their “Non-Performing Asset(s)”
Check with some of the local finance companies like American General. Some of them will loan on Land/Home deals.
Check with local real estate clubs and get the word out that you are looking for some money. I don’t know if there is one in San Antonio, but there is one in Austin that is very active. You can find them with a Google search. You’ve already got some “skin in the game”, so you may find an investor who would loan you the money.
Talk to your CPA. CPA’s often have clients that are looking for better yields on their money. Title Company closing agents may also help you. They know local private sources that are active in the market.
Get to know the local Mobile Home Dealership owners. Often they have HML’s or private lenders doing their floor plan financing. One of more of them may help you. Find out which title companies (see 4.) they use so you will know which ones are competent in closing MH deals.
Run an ad in the newspaper advertising opportunity for someone to loan money secured by real estate at some attractive rate you feel you can live with.
Line up a tennant or lease/option buyer and get an agreement with a deposit subject to you obtaining financing if you can. It will definitely make it easier to finance if lender sees the property is generating income.
These are just a few ideas. Hopefully, you will find what you are looking for by the time you work your way through the list.
Posted by Linn (TX) on August 28, 2006 at 15:49:44:
Just completed my first land/home. Caved on the land a bit and gave the seller a 90 day balloon on land. Paid for the home, move and rehab out of pocket or CC. Hoped for buyer by end of project but no such luck. Trying to refi the deal and give myself more time to sell. Here are the #'s.
ARV 75K ; cost (including land) 45K. I have 60 days left on balloon but having trouble finding lender to refi.
Anyone have any suggestions?
Posted by Barry (GA) on August 29, 2006 at 10:20:44:
Linn,
Check with your smaller local banks. At 45K you are less than 65% of ARV so I think you should be able to get a bank or credit union to do this easily. You might also try 21st Mortgage but their rates tend to be higher.
Posted by Linn (TX) on August 29, 2006 at 12:37:54:
Thanks Barry. Actually, I spoke with local bank and they will make one year loan on the value of the house only, and want the title to the house. I already surrendered title to state and changed to real prop to facititate the sale. Thought 21st mtg was good option, but they say on investment refi, they will only allow the cost of the home (no rehab) in order to determine total value, then 80% of that. Leaves us short of our cost. Thank you for your response.
Posted by Barry (GA) on August 29, 2006 at 12:49:59:
So, did you talk to any other banks? How many have you talked to? Do you have a credit union? Get all of you info together and go in the banks and ask to see the manager and sit down and discuss this with them. Go to ALL the local banks. It took me several tries to find a banker who would loan on these. Another possibility might be to sell it via owner financing and then sell the paper.
How short does 21st leave you? Could you get most of the money and then get the other lender to take the remainder in monthly payment?