Roadmap to raise 100% financing for a rehab/refi

Thanks for sharing your insight with all of us. You did a great job at the Gain the EDGE live event and we found the information you provided to be very useful. I hope you are having continued success in all your deals. Best Wishes. Believe and Achieve! - Joe

are we allowed to exchange phone numbers? I have read about you in the book and I would love to talk to you over the phone. I'm a single parent that has lose his job in febuary and my unemployment will end in 2 weeks so i need to sell something asap. any info would be highly helpful.

Can anyone tell me if small banks will ask if I'm employed? Or just give give money toward property I'm buying?

Thanks for all the great information. There is so much to learn about the whole process of getting financing. I have been thinking about going to a local bank for a commercial loan. The property is in need of a lot of renovation. What kind of numbers would I need to bring to the bank to get them interested? My personal credit is ok, but I don't think it would help me get a loan. I have no personal money for a down payment. Any advice would be appreciated.

Janet

I have heard on two occasions, one from a lender and one from a realtor, due to new Fannie and Freddy laws that passed a few months ago that one must own the property 6 months before being able to flip it. Due you now anything about this? I am looking forward to starting a career in REI and this sure puts a wrinkle in things, not to mention how tight the banks have become.

THIS STUFF IS AWESOME.... INFORMATION INFORMATIN INFORMATION

JUST THE ANSWERS I NEEDED WITHOUT KNOW THE QUESTIONS TO ASK OR HOW TO ASK

THANKS NATHAN

I WAS TRYING TO SEE HOW I CAN BOOKMARK THIS DOES ANYONE KNOW

Hi Janet,

I would find someone in your area who can help you locally. Go to Craigslist.com and look for people who are trying to buy property...you will see their adds. Pick their brain on how they got started and how they are able to obtain these houses that they say they can pay cash for. Network from there.

Good luck!

To jdl227:

Right now there is a rule in place that a person buying via FHA cannot purchase a property from anyone that has owned it less than 90 days. They can make an offer, but at the time of underwriting, the deal will fall through...trust me. At the 90 day point, they will need to submit a new offer. Not all agents know this...so they will blindly submit offers not even knowing they are no good. I have not heard anything about 6 months...as of this month it is still 90. However, if an FHA buyer gets past the 90 days but the seller still has owned it less than 180 days, there are 2 seperate appraisals that need to be done...the second must be paid for by the Seller (you). FHA appraisals run about $500 right now from what I am told...so work that into your budget.

Hope this helps

Thanks for all the tips

I can see already this grazoisian theory is taking off

thanks again

Fred

Hi family, I'm new to the REI road to success also,In my quest for knowledge on how to secure financing for my first project I'm trying to put together, I run across you spelling out a very interesting way. Thank you! But I have a question, will a small bank like the one you mentioned look at you (as referring to your credit) or will they just use the property as collateral to secure the loan?
Leslie

Hi, all lenders will consider your credit or that of your business. Insured lending institutions (banks) are not collateral only lenders. The ability to repay, credit and collateral are the primary underwriting considerations, in that order. There are also compensating factors, if you don't need the money they will lend it to you. If someone has $75,000 in CDs on deposit and you want to borrow $40,000 they will lend it to you regardless of your credit, but they will want your CDs as collateral as well. Unless there are compensating factors, reasons to make the loan, credit will always be important. If you have credit issues, you might try a co-maker, endorser or guarantor, someone to sign with you that has good credit. Good Luck, Bill

Thank you Nathan for your tips on geting finance from banks, family and
friend this is good information God bless you my brother.

Thank you so much for the idea about local banks. It sounds so simple but I didnt think of it. Thats right dont be afraid to ask for anything all they can say is no. Then you can move on or try a different approach. I guess one of the biggest things is to be clear on your plan. write it out for yourself and to present to others.
Anyway thanks.
Lance

Great info I purchace the edge kit and had some questions this is an excelent follow-up and thank you for puting the actual calculation. Going to get that financial calculator to practice. Keep up the great post.

thanks nathan,this was great info.just what I needed to find. god bless

what about if u have not so good credit

Thanks for sharing...I gonna make sure I save this info!!

Does anyone invest in Las Vegas area???

This link on Dean's site explains how to get $250k to $450k for real estate deals without credit Amazing!

http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...

Hello Nathan,

I'm just getting a chance to read your forum. I would say that your Step #1 is right on the money. Large banks have a lot of restrictions on their bankers and it is sometimes hard for the bankers to lend to real estate investors. Additionally, they have restrictions on the number of single family homes they can finance for you. They might limit each investor to 3 houses or up to a certain dollar amount (say $500K). Bankers in large banks don't always make the final decision themselves. Your loan is usually decided by an underwriter or a board of bankers that don't even know you. Once your real estate deal goes over a certain dollar amount, the banker has to work with a corporate lender to get your deal through. Just understanding the process takes a while. Find a good banker and learn the rules from him or her.

On the other hand a small bank trains its bankers in how to do the underwriting themselves. They need to lend money, but they want the deals that protect the bank's assets best. They like to have the first position with a lot of equity, e.g. 60%, 70% LTV (Loan-to-value) is great.

I was a banker for 12 years and we were once a small bank in North Carolina that grew to be a large bank nationwide.

Ty

Just curious...

Q1 - I surely don't want to be "debbie downer" but are you pooling investors money to buy the same property? I've read that you could be violating state or federal SEC regulations. Have you heard this?

Q2 - Does the bank know you are 100% financed? I think many banks may have a problem with this.

Thanks for all the great input!

Just saying thanks doesn't really say it all. Blessings to you for your experience and sharing them. I had just found out that Lehman Brothers have just gone down and I wish I could return the favor.
Warmest Regards to you and yours,
Daryl Mau
Aloha from Maui, Hi.

Hello Nathan,
My name is Aubrey and I haven't even recieved my order yet, but by reading the information on your forum this excites me even more to get started with Dean's process. I would like to ask you a question about the rehab's. I have been in the construction business ever since I was a teenager, with this previous knowledge about building and remodling house's do you think this will help me in landing a rehab deal more or should should I just not mention to the investor of my building experience? Thank you for all your knowledge and sharing it on your forum.

Thanks a million,

Aubrey

Is there any type of loan or mortgage that does not have any interest on it?

ok i havent been working out there and i dont have any pay stubs to show the bank i was injured a few years ago at work and have been on workmans compensation so the only cheques ive gotten were from the insurance company and i was on unemployemnt for a while ,my question is how do i get the small bank to lend me 80% for a great deal that i can get 20 to 50% below FMV ,or would it be better to work with a hard money lender because i know they both judge you by the credit score ,another question please if you havent been working for a pay cheque does that hurt your credit score? i figure that if i find a deal and could get financing for up to 80 % of the after repaired value that i wouldnt have to look for any other help is that possible to achieve with a small bank will they work a deal for 80% of the after repair value? thank you i know how busy you must be as we all are could you please help me with these questions thanks ron

Nathan, GREAT INFO! Even though your post is dated, I hadn't seen this post before AND I'm glad Ronald got it to resurface. THANK YOU to ALL along the way.

I am stuck on trying to understand all the forms and especially how to build a buyers list. Do you have any suggestions?

hi there I saw you on 2 years ago on the edge event my dream is to be there.
I met about 6 people were working together as a team we met at a REI meeting in Livonia Michigan alot of forclosures.
were looking to by many properties we want to work with a hard money lender do you have any reccomended organizations we can can work with it would so helpful.....
I really think we can satart off great and it would be great if we could be the michigan connection for all the DG family thank you ....Jimmy....

Quite a lot of information here thanks!

Hi, I am new to the site but just wanted to thank you for sharing your tips for people like me to learn from.