OfflineI've just got my first contract with a seller to purchase a condo which I'm super excited about. However, I'm running into financing issues. I've tried to finance this property through conventional loan but it got deny due to HOA fees were above 15% delinquencies. Hard money lenders won't work with me due to the state I am in. Family and friends are afraid to loan me money due to tax implications.
It seems I'm running out of options. Please advise!
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What are the numbers? What is your exit strategy? What are the comps? How quickly do they sell? What repairs are needed? What is your buy price?
With this info we can give advise!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Thanks for your reply. The property is in contract for $50K and the property was assessed by the municipality at $97K. No repairs needed. My exist strategy is to refinance and rent out the place for $1050 which is very reasonable for the market that I am in.
You say your family has concerns for tax implications. Did they know they can lend you money from their self directed IRA and not have it taxed at all? Maybe you should look into that. You can send them to my site and download the report to give them. Its the 2nd link in my siggy.
I need 35k to buy a cute little 2br house. (its worth 50k) Will flip in 45 days. Anybody interested in making a quick buck. thanks
Hello,
I hit your profile, but didn't see a state listed. But regardless, I'm in Alabama and still found a few HM to accommodate if needed. LOL But with them...it's ALL in the deal.
check out: http://www.moolahlist.com/
could be a starting source. or just Google "hardmoney + 'your state" and see what comes up if you haven't already.
from some I've looked into will go 70% LTV + their interest rates and pts. but bought good enough, work numbers out....will be a 100% deal.
If you've confirmed the $97k to be accurate then it might fly & still pull the conventional down payment your bank requires on the refi. from the overage remaining from HM
Anything is POSSIBLE! Just keep pushing through. I believe if the deals good enough....the money will be there.
If you do get down to the wire on your contract....your still looking at a +40 spread that would be a easy assignment. Something is better than nothing right! LOL
Best wishes to you and keep up posted!
Thanks for the suggestion. I wish my family have an IRA but with most Asian family, they don't have an IRA. It's cash that my family members have. I know there's cash to borrow but I just have to do more research on how it will affect them.
concerned about making too much due to taxes? You can offer them a nice return on their money with no effort on their part.
If they have any 401Ks from old jobs, they can be converted to a self directed IRA. I don't really know the situation, but its a good thing to be in a position of having cash!
Thanks for the link. I've search on google for hard money lenders in Alaska and found the links but when I contact them they said that they don't deal with transactions in AK right now. I know that I cannot stop right now in searching because I am so close of closing on my first deal. Just this one last push.
I will keep you guys posted.
Thanks, I've tried to email him but the email address is not valid. I will try to give him a call.