OfflineI need help really bad. How do I get a private hard moneylender? I have talked to some of them need me to have 10% down and my credit isn't in a better shape either and on to to that I have no job. I have a real estate agent that is working with me, We have come across a few really good deals but no one to lend to me so I ended up losing the deals.One of them was as recent as last week. It was a bank own fixer property, listing price was $89,900, was a 4 bedroom 1.5 bathroom. The estimated value of the house was $211,907. All it really needed was new carpets, paint and landscaping. I have no moneylender to lent to me because I don't have 10% or a skin on the game as some of them calls it. Is there any idea or advice can anyone can help me with? I would really appreciate it.
I am looking for someone that will offer 65% LTV.
I do fixer homes and then turn around and sell them. I am looking for hard money lenders (Privavte) to help fund the deals on Short term loans while I repair the houses and sell them. Duration is 2-6 months. I need loans that can cover acquisition and repair costs. I generally target homes that are around 50-60% of market value. Loans secured by First lien on deed. I appreciate every help and advice.
Make sure you have a buyer for that house before you pay the high interest rate you will get with a hard lender or you'll be sorry.
Charisse
Why dont you try to wholesale them, If the deal is that good you will find a buyer for it. Dont need money or credit and you can make a nice profit.
Hello B.C. I don't think one can wholesale a bank own property without proof of fund and double closing.
POF is easy to get, but you need to line up your end buyer if its an REO. sorry I missed that. There is another way to wholesale it also. You can put it in an LLC name and sell the LLC and the rights to the property to your end buyer.
Also, KimmyJ had posted on how to use a trust also to get past the REO wholesaling issue. look it up.
good luck
Richie
Hello;
I was reading and saw that i could purchase at 65% on REO/bank owned properties. However, I emailed a local realtor in Las Vegas who is the listing agent for Wells Fardo and this was his response;
Buying homes at 65-70% of the retail value is going to be tough in the current market. It all depends on what you calculate the retail value to be? Our market is dominated by REO's and short sales and those are the current values and comps regardless of the seller. Most bank owned homes are selling at the list price or higher because there is a low supply and the demand is strong.
On this particular home, 6167 Mythic Atlantis Las Vegas, NV 89149, we have 2 offers at this time and this will most likely sell above the list price.
What is the truth about how much of a discount is typical in this current buyers market??????????????????Please Help!!!!!!!!!!!!
Esmirna Maloon
Erathel:
Drop me a note, I believe I can assist you
Yes REO's are available, but that broker is correct ... most go for the listed amount or even more, depending on the location. As for the 65% off of retail price, what he is explaining is that with so many REO's & short sales, the actual selling price of those houses contributes to bringing down all the comps, so even after the rehab the house is not going to bring as much as you thought or hoped. We just bought a probate last month for about 40% under appraised value; only put about $ 200 into it to clean it up ... we are in the process of signing a contract for 54,500 & wasn't easy finding that buyer.
Back to REO's, we have two contracts on bank owned properties, the first was listed for three months, which was highly unusual, but it was over-priced at 39,900. Last month they dropped it to 34,900; we offered 20,000 & was just rejected, not even a counter. It went to auction(REDC) & we got it for 20,000 plus $ 2500 buyers premium, we close on the 19th. We also have a contract on another REO that was a brand new listing at 24,300; we offered 19,000 & the bank countered at 23,900, we accepted because there were three other offers waiting. In both cases the houses only need about $ 5k in rehab each & will be worth $ 49,900 each. A good quick flip.
gceriani thanks for ur info. What state r u in??
How soon do u strt to market the property to a buyer?? Do u hv to wait for the bank approval?? Whts ur usual process.
Thnks in advance!
Esmirna Maloon
Hello Erathel. You can actually wholesale a Reo. Tell your agent or the listing agent that on the section where it's asking for the name of the owner for the deed (in NC it's section 18 or 21 I believe)not on the front page where you put in your offer, but anyway and sorry for the small confusion, tell them to put "TO BE DETERMINED AT THE TIME OF CLOSING or TBD". This works here in NC and I only had one that didn't take it and I've put in well over 30 offers on REO's. Hope this helps.
Thanks alot, I will look into that. I will keep you all updated on how things go. Thanks again.
ticoeddie,it's interesting that you used TBD on well over 30 REO offers, how many of those were accepted & closed ? Every REO we have purchased, requires POF to be furnished at the time of the offer; how can you get a POF with no name on the contract ? Thanks, Gary
Hello gceriani I followed Matt Larson method of 25:1. I've closed 1 and working on another one that hopefully will close on wednesday. For the POF I use besttransactionfunding.com. All the bank wants to see is that you have funding. What I did next after having the offer accepted was have my buyer lined up for the property and went to closing with him since the offer was already in my name all he did was provide the money and put his name on title. I have an agreement with my buyer in where I find him good deals and he walks away with a great investment and I walk away with my wholesell fee.
Thanks for the info !
THANKS TO EVERYONE WHO SHARED THEIR KNOWLEDGE. I HAVENT DONE MY FIRST DEAL YET, BUT I KNOW I WILL NEED THIS INFO IN THE FUTURE. I KEEP A COPY OF ALL THE DETAILS ON DEALS. HOPE TO MEET YOU AT THE EDGE 1011!