Financing and Credit

1) HAVE AN IDENTITY: batman has an identity, neo has an identity(from the matrix), do you have an identity? When you go to meetings like your local REI club meetings, people need to remember you.

2) TITLE RECORDS: Savvy investors who buy and sell a LOT of houses will show up over and over agian on the title records. You can gain access through your local title company, make a note of the names that come up over and over again, put these people on your list.

How to find Hard Money Lender through various means:
- Internet
o This is a hard way to find “private hard money”.
 You will find a lot of “conventional” hard money lenders this way. Because the lender is on the internet with a lot of traffic they are very strict with how they lend.
- Newspapers / Penny Savers
o This is a great way to find lenders. You will need to watch the papers regularly. On occasion hard money lenders in your area will place an ad that they have money. Call these ads.

What Hard Money Lenders normally do:
- Interest Rate: 12-18%, interest only
- Points (percent of loan amount): 2-5 points
- Term: 5 years or less
- 60 – 75 percent LTV or ARV
o The lenders can increase or decrease the interest, points, amount they lend, terms or anything with the loan. It is their money.
- ARV is After Repair Value. This means that the lender finances a percent of the value of the property or value of the home when it is fixed up.

Because hard money lenders work with their own money and not an institutions money they can do loan such as:
o Full Purchase
o Wrap closing costs into the loan
o Pay for fix up costs
o Take a second loan
o Take less interest while sharing profits
o Partner on deals
o Combinations of any loans

The truth is financing for mobile homes is difficult to do. Most lenders do not like to finance mobile homes. This is whey seller financing is so prevalent.
However, if a bank were to give financing you will usually see:
- Lenders giving 60% or less of the value of the property and even 50% or less if the home is in a park without land.
- Homes older than 1980 will be more difficult.
- The down payment can be seller financing but most lenders will require a large amount as cash.
- The interest rate of mobile home financing will be between 8%-12% for excellent credit.

Hi, I just talked to my banker today about a HeLoc using the equity in my 3 rental properties. Although they are not in the LLC name, I was considering putting them in it, as was advised, for liability purposes. However, my banker said they, nor any bank, would make a HeLoc loan on the LLC, and that I should keep them in my name. She suggested that for liability purposes, my hazard insurance on the properties should be able to carry enough liability ins. for me.

Has anybody else met with this problem?

Thanks,
Jan

Hi, I just talked to my banker today about a HeLoc using the equity in my 3 rental properties. Although they are not is the LLC name, I was considering putting them in it, as was advised, for liability purposes. However, my banker said they, nor any bank, would make a HeLoc loan on the LLC, and that I should keep them in my name. She suggested that for liability purposes, my hazard insurance on the properties should be able to carry enough liability ins. for me.

Has anybody else met with this problem?

Thanks,
Jan

Well if you have read any of my other post they you know that I am a firm believer in ASKING. So here goes.

How To Ask For Owner Financing.

After you find a property, sit down and talk with the owner. Even if they have a realtor, tell the realtor you would like to make an offer on the property but you insist on meeting the owners first.

A lot of uson here do not have good credit or finances that would allow us to get up and go out there and just start purchasing. I get a lot of mail asking about how to get started so I am going to drop a few suggestions. I am sure they probably have been addressed on here somewhere but I am putting them out again.

1. Ask family member with good credit or credit strong enough to get a loan. Most will say no, but you might try telling them that you will make them an equity partner and pay them back a percentage of the profit upon the sale of the property.

OR

This is not an advertisement for any company. I just wanted to share a site I came across that connects you to a list of brokers/lenders for any state. I found hundreds of them from my own state. Now the work comes in checking them out, to see which ones would be best for an investor. (dgadmin, please edit if necessay)

Taken from PersonalHomeLoanMortgages.com:
http://www.personalhomeloanmortgages.com/broker

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