Financing and Credit

I need help. Im almost finished reading Dean's book (BARM). I must say his words are very enlightening and inspiring. I am young but I want to start NOW. I have seen a few properties in my area that I know are great deals but I don't know where to begin. I wouldn't dare try to get financing with little income and bad credit. I especially liked the story in the book where the guy in college gets started but I don't know of anyone that could help me in the manner his landlord helped him. Im determined to succeed in Real Estate, I honestly just don't know where to begin in my situation.

I believe there is one very magic ingredient that can help you to get the SELLER to work with you more often then not.

I was asked by someone: "how do you go about getting the SELLER finance SOME or ALL of the property?"

Well....there are NO certainties, but you sure can help the process along with something simple....EDUCATION. For YOU certainly, but in this case...THE SELLER may need some.

I just recently purchased Dean's BARM book and I am trying to get in the game. I had my realtor find some properties that were in an area that was renting well. I found a few and started talking with lenders, etc. about financing. All are telling me that there's is NO CHANCE of getting a loan without at least 20% down.

I can't over emphasize the value of a good relationship with an HONEST Broker/Agent.

I have been working with this Broker/Gal who specializes in REO's for REMAX. All along she has gone out of her way to try to be honest with me...EVEN when I might not like to hear it.

I was having trouble coming up with "good" comps for a property I am trying to fund, and so I decided that I would put my Agent to work.

I have a property ready to buy in Sugarland, TX for approx. $165,000. It has two adjoining lots, one lot occupied with a home and the other lot is vacant. However, someone with a vision could do wonders with this property....

Without a doubt, this will be a STEAL and a RETURN of HUGE PROFITS for ANY investor!!! The only reason why I have not held on to the property is I have no funds to secure the contract. I need to assign the contract in less than 30 days. The owner wants to move to Austin, TX with family and needs to leave ASAP!!!

Here are the questions you need to ask when dealing with Hard Money Lenders....

1. How many points do you charge?

2. What is your interest rate?

3. Is it 6 or 12 month loan?

4. Is it amortized over 30 years?

5. Is it an interest only loan?

6. What percentage of the after repair value do you loan?

7. How much money do I have to bring to the closing table?

8. What is the minimum credit score I need to have?

9. Is there a prepayment penalty?

10. Will you extend the loan if the rehab is not complete after the balloon date?

http://lenderoffender.com/

This site is dedicated to those lender who do not do upkeep on the foreclosed properties.
The 3 worse offenders are Countrywide, Fannie Mae and Deutche Bank.
This is where people can report ran down foreclose properties...and maybe you can find a deal here.

My Lender emailed me and was questioning the Value that I came to using comps that I provided him. He de-valued the assessment That I came up with, but it didn't affect the funding.

I started thinking about it, because the property is NOT an average property. It has an APT. in addition to the Main House on the property.

I started thinking about the property and tried to compare it to the comps that are used to place VALUE on the property.

I was convinced that there had to be a way that this property is worth more, and there had to be a way to prove it.

I have a partner who has secured a property, however, we do not have a means to purchase the property at this time! The property has a FMV $150,000 alongwith an adjoining/second lot FMV $120,000 (two parcels of land in all). No property was built on the second lot, except a large garage used for woodworking, RV, mechanics, etc.

Total FMV approx. $270,000.... My partner was able to gain the property for a great price!!! The only problem we are having is neither of us have ANY $$$ to secure the property and the contract has been extended for another month to secure funds!!!!

• Allows you to act as a lender
• There is a lump sum of cash up front/down payment
• You get income over time
• Mortgage payment received is usually higher than market rent because you can charge higher interest rate.
• Provides an investor a broader market to sell to because you can have financing option to attract buyers.
• You can offer financing without bank qualifying they may have lower credit scores or higher debt to income ratio
• May attract those buyers not even thinking of buying.