OfflineI've run into a couple of issues with making offers lately. First, I'm being told that I cannot bid on Fannie Mae owned properties without submitting 10% earnest money with my offers. I really don't have that kind of cash laying around and I can't say that I know anyone that does either. Also, I just had an offer for a VA owned property rejected (by the selling agent) because I was not pre-approved by Bank of America even though I provided proof of funds through Coastal Funding. There are several VA homes in my area that I'd like to bid on, but this requirement seems a bit ridiculous. Is anyone else running into the same thing?? Any suggestions are welcome. Thanks!!
Bill
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Looks to me like I will be stuck in the referral world.
The strategies when you read them sound great and make cense but I guess the “ real world ” doesn’t agree .
My trouble is :
Finding a home at 50 - 60 % below , well that’s tuff .
When I do find something either the realtor or bank won’t allow an assignment.
Then I found one that was priced at 60 % below and the hard money lender states its in a declining area and wouldn’t lend on it.
Hard money lenders up to now have been a joke. I can not find one that will fund 100% of the deal even if it is at 60% ARV. They want to look at your credit , your bank statements and want you to use 10-20 % of your own money. So if they lend up to 65% and require you to use 20% what are you getting 45% not realistic.
So I am concluding its back to the same BS , if you don’t have money and you don’t have credit you have a nice day.
If someone out there can tell me they have no money and no credit and are doing deals in this market with no money down PLEASE HELP. The assignment contract no one will except , Hard money lenders want credit and money from you , Private lenders well haven’t found one yet . So I am out of avenues for now.
There may be a few investors ( end buyers ) with cash that I can refer to , but that’s far and few.
Can anyone tell me how to do what they are saying they do. And please I read enough stories. If you say you have a lender that does 100% funding ( SHARE )
Sorry if I sound negative but I am so frustrated . I have all day and night to do this ( retired ) and still can not get a start.
owned properties you have to get prequal through them, to submit bids on their listings. I don't know where you're located, but find another agent to submit your bids on VA properties that aren't BOA REO. Don't get hung on this one obstacles. There are probably other better REO listings. Are you trying to assign or buy for yourself?
Bill
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
are the properties you need to be going after to do with no money down! Don't get mad at the hard money lenders (second set of eyes reviewing your deals), they got to protect their assets too. Use the information they've told you to your advantage. You now know to avoid that area, where you thought you had a potential deal, that is declining and search out other areas where the values are stable and/or increasing.
Your right! Lenders (REO) are not the properties to assign. If the Realtor is representing a bank own property you can't assign those listings. Some of the regular MLS listing agents likely don't know what you're attending to do because they haven't invested in properties themselves. REOs you have to buy outright and resale to end buyer (investor or retail buyer).
The strategies when you read them sound great and make cense but I guess the “ real world ” doesn’t agree .
My trouble is :
Finding a home at 50 - 60 % below , well that’s tuff .
When I do find something either the realtor or bank won’t allow an assignment.
Then I found one that was priced at 60 % below and the hard money lender states its in a declining area and wouldn’t lend on it.
Hard money lenders up to now have been a joke. I can not find one that will fund 100% of the deal even if it is at 60% ARV. They want to look at your credit , your bank statements and want you to use 10-20 % of your own money. So if they lend up to 65% and require you to use 20% what are you getting 45% not realistic.
So I am concluding its back to the same BS , if you don’t have money and you don’t have credit you have a nice day.
If someone out there can tell me they have no money and no credit and are doing deals in this market with no money down PLEASE HELP. The assignment contract no one will except , Hard money lenders want credit and money from you , Private lenders well haven’t found one yet . So I am out of avenues for now.
There may be a few investors ( end buyers ) with cash that I can refer to , but that’s far and few.
Can anyone tell me how to do what they are saying they do. And please I read enough stories. If you say you have a lender that does 100% funding ( SHARE )
Sorry if I sound negative but I am so frustrated . I have all day and night to do this ( retired ) and still can not get a start.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
I am trying to buy using Trusts as a way around assigning bank owned properties. I have a partner with the cash and it is up to me to bring the deals. I use FMV times .65 less the repair cost to formulate my offers. I've only been at it for 3 weeks and although I've been close, I've not won a bid yet. I'm trying Matt Larson's 25:1 idea with my own twists and will keep at it. By the way, I'm in the Indianapolis area and will be submitting approximately 30 offers this week. I was just wondering if anyone else had the same issues with Fannie Mae and/or VA owned homes. Thanks.
Bill