Posted by ray@lcorn on August 29, 2002 at 10:56:49:
Matt,
Lenders generally loan the lesser of 70-80% of value (LTV) or cost (LTC).
To structure a contract to represent the purchase price as higher than the actual cost is loan fraud.
ray
Seller gave a lender’s name - Posted by M Brown
Posted by M Brown on August 28, 2002 at 02:12:48:
Hi,
I am looking to buy my first investment property after listening and following Carlton Sheets work for almost a year. It is a 38 unit apt. building from the one owner, builder/seller who has owned it for 30 years.
At first, I approached the seller as a representative of a group of people at work interested in investing. They wanted to buy single family unit bulings, one-by-one. I saw the potential of multi-unit buildings and found myself looking at the sellers’ 38 unit building.
The investors at work are uncomfortable about a multi-unit building, but I feel comfortable from Carlton’s training and I am agressive to make a move, yet I don’t have their $$ for a down payment.
I told the seller my story and he gave me the name of a lender he has been working with for 30+ years… the seller knows I do not have the cash for a down payment…
I THINK I am getting the hint that if I make a good offer low enough that he will accept, I could get financed for more than the property is worth and cover the down payment with the instant equity of a low offer… am I understanding this correctly?.. Am I right in thinking this is what I am getting from this move on the sellers part?
I am too used to NOT thinking about traditional lending as a way to make a NO MONEY DOWN PAYMENT! Banks SCARE ME ! !
Please let me know if I am just missing something or if I am lookng at the beginning of a golden opportunity. Feel free to email me as well.
Thanks
Matt