OfflineOk Guys ,
I've been alot of talk but had my heart broke tonight, for the last couple of weeks I have been really happy because I have been taking the steps to freedom. Tonight I just had to secure the financing and I would have had deal one. Talk to my property manager down there everything is good to go.
I called a broker tonight to learn it is almost impossible to get a loan for under 50k on an investment property. Deal Dead?
Deal
condo 2bds 2baths pool in good neighborhood
built in 1984
Est Value:64k
Asking:34k
Offer:30k accepted
Cash:6k down
rent:725
mort @ 5% 24,000: 135
Hoa:150
tax:75
Ins:75
reapir fund(just in case):105
property man:60
Income after:$125 a month
I could buy it in cash but I do not want to lock all my money up. Any advice or is it just time to fold?
Just a though I don't know how legal but can I buy the property in cash through another person or LCC and sell to myself for over 50k
They told me that for an investment property I would need 25% down and over 50k. Do most of you not mention to loan officers you will rent the property?
and what comes to mind is how Rina does things. I don't know if it would work for you but I certainly wouldn't let the deal get away if you believe in it.
What she does is find private money (or in your case you could use your cash if you couldn't find private money) and purchases the property with cash. Then she refinances the property up to the max specified by the bank. In her case it is 75% of the property value. But, evidently it is much easier to get a loan on a refi than it is the initial loan.
What you will want to do to find your refi bank is to start interviewing local banks and credit unions in your area and "qualify" them! Find ones that offer in house loan programs and that do not have seasoning requirements. Each may have a different loan to value % that they are willing to refi as well, so you will need to check that. Also ask if they will count your rental income as part of your financial statement. And, make sure to find out how quickly they can close on a refi if you are worried about having your $ tied up. (this info I got from Matt Larson's presentation in the videos)
Hope this helps!
Susan
Susan
Don't take no for an answer!
Don't live in the gap!
Don't give up!
You can follow my progress at: http://www.deangraziosi.com/real-estate-forums/investing-journals/54148/...
would that more fees and two closings?
you would have to pay closing fee's twice. Once for the original and once for the refi.... but maybe you could negotiate that the seller pay for the original closing and then you'd only have the fees for the refi which I believe would be less than the original.
Susan
Susan
Don't take no for an answer!
Don't live in the gap!
Don't give up!
You can follow my progress at: http://www.deangraziosi.com/real-estate-forums/investing-journals/54148/...