Financing and Credit

I thought this was a good article on rising interest rates from CNNmoney.com. According to the article interest rates may be on the rise for the next little while.

Mortgage rates have hit their highest level in more than a year, making homes more expensive for buyers who finance their purchases.

The rate on a 30-year fixed-rate mortgage jumped 0.22 percentage point to 3.81% this week, according to Freddie Mac. That's up 15% from the record low of 3.31% set the week of November 21, 2012 and the highest rate since it hit 3.83% the week of May 10, 2012. The 30-year rate was as low as 3.35% in early May.

The 15-year fixed-rate mortgage also spiked, up 0.21 percentage point to 2.98%.

http://www.biggerpockets.com/renewsblog/2013/05/29/hedge-funds-single-fa...

Little or No Qualifying.

Even if the seller demands a credit report on the buyer, the seller's interpretation of buyer qualifications are typically less stringent and more flexible than those imposed by conventional lenders.

Tailored Financing.

Unlike conventional loans, sellers and buyers can choose from a variety of payment options such as interest only, fixed-rate amortization, less-than-interest or a balloon payment. Payments can mix and match. Interest rates can adjust periodically or remain at one rate for the term of the loan.

Down Payment Flexibility.

Down payments are negotiable. If a seller wants a larger down payment than the buyer possesses, sometimes sellers will let a buyer make periodic lump-sum payments toward a down payment.

I am purchasing a 7 units property, the numbers are;

Total purchase price : 267k
Appraisal for 1 st mortgage come at: 205k
Seller is willing to carry second as an investor for the diffference 45k for 36 months @ 9%.
I will come up with 17k.

However the seller want me to present the offer and tell him how is money will be guarantee. he wants a personal guarantee from me.

Help me structure this transaction for the seller please.

Have you financed your property to a buyer yet? If so would you like to cash out and sell that note for cash? If you want to sell your notes and stop getting monthly payments and receive cash and a good deal please contact me Jummy F. ---->> jummyfleury @ yahoo . com if you know other interested parties please send them my way that's always appreciated.
Thanks

I'm a Canadian Investor, investing in Canada and the US. I have great credit and no problem getting funds in Canada to purchase my Canadian properties (currently have approx. 2M in real estate in Canada), but can't seem to get a financial institution to fund my US deals. Has anyone found a solution to this (other than private lenders at high interest rates)?

The FHA is trying to avoid a bailout by generating more income. While a pickup in the housing market will increase revenues from new loans, this isn’t considered to be enough. The popularity of the FHA loan is primarily the low down payment requirement, still as low as 3.5 percent to 5 percent. Borrowers who seek these loans are generally middle class and short on funds for the 20% minimum required down payments for other conventional mortgages.

Good morning every one, this morning I have a question, I found a person willing to finance my deals but I will have to put a agreemnt in writing, does any one have one or know how to put it together?
Thank you very much.

Wondering if there is anyone out there who could help me in putting the paperwork, wording, etc together for a private mortgage. We have a property owned free and clear and want to give an investor a 10% return on their money. Any help or direction is greatly appreciated! Thanks!

There has been a major surge recently in the interest of investors in REITs, Real Estate Investment Trusts. The passive nature of these investments and tax advantages offered are primary motivators in this increased interest. Smaller investors are beginning to recognize the similarity of tax benefits available to them through a self-directed IRA.

A self-directed IRA allows tax-deferred real estate investment, and if it’s a self-directed Roth IRA, there are other possible benefits. This is because contributions to a Roth IRA are made with after-tax dollars, so this type of account enjoys tax deferral and in some cases even tax exempt status. The amount of the contribution is considered the basis.