OfflineHello Everyone,
I am normally one of the DG family members that learn so much from all the great comments that you all post. I have been moved to create a post. I have a fantastic pipeline set up for deals to close in henderson nv. I have this one deal in particular that is set to close tomorrow. It is a fantastic deal. The list price was 58k and we have it under contract at 37k! The comps in the area has the property at at ARV of 73k. It needs light rehab which is mostly cosmetic, and it would be ready for resale. I am dealing with a hard money lender in which I will not name, but they contacted me at the end of the day today, and informed me that we will not be able to close tomorrow. Needless to say I am a little disappointed because that is now leaving myself and my agent scrambling to extend the close. The funny thing about this was that they appeared to make things very easy on the front end relative to what some other hard money lenders were asking. But now it makes me wonder if they can even perform. I did due dilegence in regards to people in the industry knowing this firm, but I never spoke to anyone that closed with them. I have four other deals under contract and I wanted to have one place to go to fund all of my deals, needless to say that we have lost a little trust with them. So a word of advice is just to check the track record of these lenders, and chat with people who has actually done deals with them.
Happy Investing,
Jeremy Kelly
The Real Estate Rollercoaster
Posted on: Fri, 02/26/2010 - 01:34
The Real Estate Rollercoaster
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Thanks for the advice. I came to find out today that its not easy to put in offers on forclosed properties cause they need proof of funds letter. Do you know of any good hard money lender or somebody that offers proof of funds letters. Thanks for any tips.
What was the reason they gave you that they could'nt close tomorrow? Are they still willing to give you a loan or they are just saying no all together? Let me know, either way you will find a way to make a deal happen!
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
There is one company that I have used for proof of funds letters. It is www.coastal-funding.com. I actually found them on this site. Hope it helps!
Jeremy
The loans docs were botched. It has my terms on the heading of a totally different property. Come to find out that they never even went to my property, and so now the whole process in essence would start over. They said 10 days, but you know that you are charged 100 per day that the property doesn't close. So now I am going to present it to a associate that may be able to fund the deal. Let's keep our fingers crossed!
I know plenty of sites that do POF letters (real companies)
I've been in your shoes before. Some lenders take there sweet time on funding investors. It's sad because you as an investor have properties on the line.