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Lydia

Need advice

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How can I assign contracts or wholesale to rehabbers when the real estate agent won't accept my offer without a letter of credit from the bank or a loan pre-approval letter?

 

My plan was to put up $1,000 earnest money, and, if my offer is accepted, do a double closing.

 

This is an REO junker.

 

Thanks for any advice.

 

 

Bummed, but not giving up...

 

Lydia

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Lydia,

 

How is your credit? Why not just procure one and move on. If your credit doesn't allow this you can also get a letter from a hard money lender.

 

You do realize if you can not flip the property you are contractually obligated to buy this junker. This is one of the reasons for having you get the letter.

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Lydia, the Realtor is protecting her client, the seller. She doesn't want to tie up the property for thirty days or longer only to see the deal die for any reason. Can you do as Tony suggested? What is your situation? Are you able to finance the deal if need be? Perhaps one of the mortgage folks here can offer you some advice and help.

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Buying my own residence this summer tapped me out. My debt to income ratio is way high.

 

I really think doing lease/options with FSBOs is the best thing for me, given my money situation. But so far, I havn't got any properties under control.

 

I wouldn't necessarily need to tie the deal up for 30 days. If I get a good deal acccepted, 7 to 10 days would be enough time for the end buyer to pay cash at closing.

 

Lydia

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Buying my own residence this summer tapped me out. My debt to income ratio is way high.
Understood. Still, you may want to contact a few of the mortgage people who are here. You'll be surprised at what programs are available these days for investors. Members Andrew Ikeda, and mpine I know personally and think they would both be a good place to start. I would also recommend you contact any others who have posted here. You never know.
I really think doing lease/options with FSBOs is the best thing for me, given my money situation.
Agreed, Lydia. That's why I say that lease options are the best way for most newbies to break into this business. Most are in a similar situation as you: low funds, iffy credit. Properly done lease options are a way around that. Using Realtors to work deals does make things difficult, too.

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Lydia,

 

A prequal letter is not difficult to get, however if you can not flip the deal and do not wish to aquire the property be prepared to lose your down money.

 

Another option for you is to find a new hungry realtor, and literally train them in what you do, and show them how helping you find these "Investment" deals can put change or some big bills in there pockets.

 

 

Best wishes,

 

Michael Pine

First Source USA

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What does it take to get a preapproval letter?

 

I'd welcome anyone who would like to help me, to e-mail me directly at lydia@cashbuyorsell.com

 

Thanks.

 

Lydia

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you know what Lydia? I like you, you have spunk. So I Tony OF the Naked Investor Forum here by pre-approves you. just print this out and take it to the bank

 

 

Tony know's nothing of what he is talking about. use of this letter will get you no where. His jovial spirt get him into trouble don't let him misguide you

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Lydia,

 

Give me a call on Tuesday and I would be glad to assist you with a pre-qual letter.

(631) 961-9981.

 

Best wishes,

 

Michael Pine

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Hello Lydia,

 

I am a loan officer with US Funding Group, Inc. and I work with lenders who can finance anywhere in the US.

 

You mentioned having a high DTI ratio. Exactly how high are we talking here? You'd be surprised how lenders can add and bend income and debt to make things work.

 

You can start by simply adding all your minimum monthly payments (not the balance owing!!) and then divide that by your GROSS income (not net).

 

A strategy you might consider is an interest only loan if we can get you qualified. It would be a three to five year loan but you could l/p or sell it before then. You only pay interest which means that you could cashflow on this property and then sell it before the loan term is up.

 

I've also been told and learned sometime back in realtor class that a realtor is obligated to present all offers no matter how low or ridiculous it might sound.

 

What I suggest at this point is to e-mail me personally at andikeda@netscape.net. I have another idea/offer that may be of interest to you but would prefer not to advertise it on this site...yet...anyways..

 

Feel free to ask me questions.

 

Good luck,

 

Andrew Ikeda

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Why not find your own deals with homeowners. If it's a junker you want, simply drive around your city and write down all addresses to homes that look abandoned, empty, distressed or the sort and log on to your local appraisal district, put in the address and you will get the owners name and current address. You can also get the tax appraisal on this particular property, so you have an idea on where you can start when it comes to making offers.

After getting these names and addresses, then go to the white pages, put these names in and see if you can come up with a phone number, you can also put the address in.

I simply call them and ask them if this property is for sale, if they say yes we talk, if they say no, then move on. Get them under contract for 30 to 90 days and thats how many days you will have to assign the contract. Investors are easy to find by calling ads in the paper. Ads under house for sale, or for rent, ask them if they buy fixer-uppers and you can do this before you actually get the contract and you will have someone ready to look at property when you do get something under contract. Also, make sure to use all marketing techniques as possible.

Cruz

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