Suggestions on financing - Posted by Michele

Real Estate Investing Real Estate Financing
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Posted by Robin Foote on February 27, 2003 at 15:12:31:

Michele,
I live near Chicago. Some areas of town homes are selling near ARV, even though these places need a few repairs. The better deals usually have more repairs. Have you looked for financing companies that loan on these deals? I suggest you have a lawyer write the second to avoid mistakes since you are new.

Robin Foote

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Suggestions on financing - Posted by Michele

Posted by Michele on January 09, 2003 at 12:29:58:

I’d like to find out how to write my own mortgage. I’ve read some of the links on the topic located here on the site but I am still very new to investing. I’ve found a couple of properties to bid on…here is one example:

  • 2 flat asking price of $24500 8 rooms seperate utilities
    Property being sold as is with special rider, no survey given, and pre-approval must accompany all offers.

With traditional financing, I am looking at a very long time until receiving funding so here is where I thought creative financing might come in handy. I’d like to make some minor repairs then sell it off. The property is located in a very changing part of Chicago and is quite a bargain in that area. The areas a few blocks to the east have homes selling for $80,000 (old homes) to $250,000 for new construction.

Questions:

  1. How do I bid on a property without having the preapproval in hand?
  2. From the info provided, is this the type of deal I should consider my first time out or move onto something else that’s easier? I know you only get experience from doing so I want to get out there and be a doer.
  3. Should I try to work with the broker I have working on getting my preapproval for a home of my own and not any investment property? Her brokering still seems to be geared to the more traditional financing techniques.

Thanks in advance for any suggestions you have,
Michele