Financing and Credit

I'm looking at a 4-unit residential property in central connecticut. The seller (who inherited the property) is motivated - doesn't want to deal with managing the units. The house is currently only 50% occupied. It is currently bringing in $1700/month at 50% occupancy and would bring in $3400 at full occupancy. I estimate the value at $220,000 and the house is on the market at $195,000. I have access to some private investment funds, but certainly not the 25% required for traditional lending.

I think this sounds like a good deal for me, but I'm looking for ideas on how to get it done.

Is this strategy possible? Has anyone tried it? I was just thinking about it myself and wanted to see if anyone has had the same idea or has ever used this technique and the results that came from it.

Found this useful and wanted to share...

With historically low rates, many homeowners are watching closely for the right time to refinance their mortgages. Those with good credit may well recall being showered with praise by a mortgage broker during the initial purchase for that solid credit score.

That was then. This is now.

A few years ago, a score of 620 or higher was good enough. That increased to 680 in early 2008. Then it jumped to 720 in April last year and 740 in August, says Rodney Anderson, senior managing partner of Plano, Texas-based Rodney Anderson Lending Services.

As we come into a new year there will be changes in investing. One such change is going to be a new Good Faith Estimate form. The changes in the form are ment to make it easier to see how much the loan is costing you. There are places to compare the cost of the loan with an interest rate buy down to lower your interest rate, or getting a higher interest rate to help cover some of the closing costs so you are bring in less money to cover closing cost. There is also a section that will help if you wat to comparison shop your loan.

I want to share this website called “Prosper”

www.prosper.com.

If you need a small loan, I think it is a good place to borrow money. I have never used their service myself, but my girlfriend did last year. Currently I am trying to buy a property & need about $15,000. So I am planning to borrow money from them.

Prosper Loans is large peer-to-peer lending marketplace. Also you can invest your money directly to people. (You have access to each borrower's credit history and why they want the loan, etc.)
I think you can earn pretty good return

Cheers!
Miyuki

Help!

Im a currently in the Army and am getting ready to make an offer on a fourplex and use my VA Loan- no money down.

However, I have also found a duplex that I think would be an excellent investment.

I would like to go ahead and by 4plex and purchase duplex (they want 66500) for.

What is the process for getting an investor loan? Can I do this while in the process of getting another loan? My problem is that I can only afford 10% down on this property and was wondering if this would be a problem?

Does anybody know of a good mortgage investment broker?

Here is a question I received through private message:

Hi. I'd like to know how to figure out the numbers before presenting an offer to a potential Hard Money Lender. I know thier looking to make money on the deal as well, but how do I figure out what to lock -up under contract, that would get accepted by a HML?

Here is my response:

Following is a private message I received:

Hi Nathan, sorry to bother u. I just had a question re. owner finacing.

The selller finances 20% of the sale price for 2 years. Can he charge whatever interest he wants?

Also what happens to the remaining amount from the sale price?

Here is my answer:

In order to get around the lengthy full-approval process, FHA permitted what were called “spot approvals,” in which a lender could make a loan on a unit which the lender reasonably believed would comply with FHA requirements. This spot approval process will expire on Jan. 31, 2010. If the spot-approval process deadline is not extended again, sales of units to first-time buyers will slow considerably, hindering move-up buyers.

If you are planning on buying condos with financing this will apply to you or if you are buying these and expecting to sell them to end buyers....this will affect you too.