Just an idea. Let me get this straight. You now own this house and owe $95,000 ($80,000 forst, plus $15,000 liens) on it, but it is worth $148,000?
If that is the case, just refi it, and take out the $15,000 to pay off the liens. Should not be a problem since after refi you only owe the $95,000 plus costs. In fact, why not pull more money out, and use it to buy another property?
There are always ads in my paper that advertise mortgage lenders who will lend based on the equity. Also in the Yellow pages. Try that.
OR, possibly sell it for the full amount needed plus the extra cash. And move on to the next deal.
Just a thought. Õ¿Õ
I just had my offer accepted by the bank on a pre-foreclosed house for $80,000, which I got a hard money loan for. The house has been appraised for 148,000 dollars. The 1st on the house was 5 years old and had a balance of 110,000, so I guess they really did not lose money on it. The previous owners’ creditors put 4 liens on the property for about 25,000, which I agreed to pay. I have gotten the creditors to take a discount on the bills of about 40% which brings the amount due to 15,000. The problem is, I am short the $15,000 dollars. What do I do?
Here’s what I come up with.
Get a partner to invest 15,000 secured by a 17,000 balloon second at 13% due in one year.
Is this a bad idea? If not, how do I get a partner? Do you guys have better ideas?