Financing and Credit

I am meeting with a mortgage broker tomorrow so I will be speaking with him about this, but I wanted to pick the brains of all the savvy investors about what they know. I found a property on the mls that is 2.14 acres with an acre of irrigation listed for $125,000. The property is listed as bare land but there is a house on it, it's just run down. This property has so much potential, old growth trees, irrigation, just a beautiful setting. The neighboring properties are all very nice ranch homes. I looked it up on the county website and found that it was bought for $398,000 in 2007 so I figured it was a short sale which eliminates seller financing. I called the agent and asked him, he confirmed.

On June 28, FannieMae announced that their "Delayed Financing Exception" has been removed. Buyers can now get cash-out finaning with no waiting period after a no-financing purchase transaction under the following parameters (no exceptions will be granted):

The new loan amount is not more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to applicable Loan to Value guidelines).

1)The purchase transaction was an arms-length transaction.
2)The purchase transaction HUD-1 confirms that no mortgage financing was used to obtain the subject property.
3)The preliminary title search or report confirms no liens on the subject property.

I'm having difficulty finding a hard money lender. They are either not lending or don't respond unless you already have a contract...how do I put a property under contract without having a lender on board? Does anyone know a hard money lender in Kansas?

Thanks,
Craig Roth

I need 200k amortized over 30 yrs, @12%. I will refi in 2-3 years and pay off the loan. After 2 years your profit from int. Will be approx 47k. If you are interested PM me!

Thank You, Bryan Smith

on loan modifications and the effects it is having with the housing market. Read this and you will understand why people are so frustrated and more isn't being done to get our shadow inventory under control.

http://redtape.msnbc.msn.com/_news/2011/06/27/6957811-why-is-housing-mar...

is the link to the story. (There is a short video within the story too)

Here is an example of government not really thinking about the overall situation in the RE market. While this change in loan limits for Fannie Mae won't effect most of us; it may have a chilling effect for the folks in CA and other high property value states. Read the whole CNBC article here:

http://www.cnbc.com/id/43526306

Any referrals!

This is an article I found online from usatodaymoney. Talks about that 30 per on properties are being bought by cash buyers. Looks like there are a lot of cash buyers out there to work with.

Last month, all-cash buyers accounted for 30% of existing home sales, up from 25% in May 2010, and 12% two years ago, says the National Association of Realtors.

Cash buyers, who are mostly investors, accounted for at least 30% of existing-home sales for the fifth-straight month, the association says. They hit 35% of buyers in March.

The cash buyers are enticed by low prices and potential rental income, economists say. But while their activity has helped curb price drops, price increases have yet to follow.

Check out this video featuring the owner of biggerpockets.com and Kevin Amosh, President of Pine Financial Group. I know and work with Kevin and can endorse him 100%. He only works locally and explains why and why you should work with local HMLs and how most national HMLs can't produce or stick you for more money right before closing.
They also talk about doing due diligence when hiring a HML. Where they get their funds and how ETC ETC.
Then they talk about the number one reason new investors fail when they try to buy and hold or fix and flip. NO CASH RESERVES!

http://pinefinancialblog.com/biggerpockets_interview/

Listen carefully!!

Michael Mangham
MD Home Acquisitions LLC

I have found myself trying to save my credibility in my area. The partners I was working with seperated and they were the financial backing I was able to use. I'm trying to find the funding myself. My agent hasn't mentioned the earnest money, which is non-refundable after Thursday the 23rd and I will lose the deal if I don't find the funding I need by Wednesday the 29th. The deal is worth $364k and I need $260k to allow time for the deal to complete. I don't have the usual options of using my own home, don't have one, and I have no family or friends who can help. Does anyone know of any lenders who I may be able to work with in a very short amount of time?

I appreciate all your help in this matter.
MJ