Posted by Ronald * Starr(in NoCA) on April 10, 2002 at 16:44:29:
John R--------------
There are lots of ways to do this.
For a loan, approach people who know you, trust you, and perhaps like or love you. This would be relatives, friends, neighbors, coworkers, employers, employees, etc. and any people they know to whom they might introduce you and vouch for you. Many people are getting less than 1.5% interest on their bank deposits and money-market accounts and maybe 5% on 5-year CDs. You can offer them substantially better return, secured by a property.
You might get an institutional loan for part of the purchase price and get a second loan from the above sources to finish the purchase price.
The seller of a property has a strong incentive to help you buy,since the owner wants to sell. Perhaps you get that person to provide a full purchse price loan or a second loan over either an institutional loan or from somebody you know.
If the owner has a loan on the property, perhaps you can take over the property, leaving that loan in place, and get a second loan from the seller or people you know. This is called “subject to” and may require some special paperwork to do pull of. You can check the archives with the search function to learn more about subject to deals–you make find hundreds or thousands of references.
Since you may be capable of getting an institutional loan in a few months, you might ask the seller to do a “lease with option” to purchase. You rent for a while and have the right to purchse the property when you can qualify for a loan. You can find this under “lease-option” and similar phrases in the archive.
If none of these are feasible, come back again, tell what you tried and didn’t work, and somebody will probably be able to provide some more possibilities.
Good InvestingRon Starr***