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Guest Jason Bhattacharya

Finding The Money ....

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Guest Jason Bhattacharya

Greetings All,

 

Sorry for my inactivity, I am still trying to learn about various deals and ways to make them happen.

 

The purpose of my post is I think I have found a great in to the world of L/O. There is a person who has three houses, in a not so good section of town. The prices are 23k, 32k, and 60k.

 

The problem that I am running into is, the lady that is selling them too is an investor, and she is not sure if she can get creative financing, which will allow me to do a L/O. If she is unsuccessful in accomplishing this, then I might not be able to close on the house.

 

I have good credit, and I could get a loan on these properties (or at least 2 of them). However, I do not want to tie up my credit, or my personal money in the case that I have a problem finding a tenant buyer.

 

My fear is that if I take out a personal loan to cover these properties, then

1) I will have to pay all the loan fees

2) I will get stuck with the mortgage payments, even if I CAN'T find a buyer.

3) I will have to put money down, when I don't have the money to put down.

 

Does anyone have any suggestions on how to pull this deal through? Is it something that I should thank the lady for her time, and walk off?

 

Does anyone have any ideas on how to find the OPM (Other Peoples Money) to make this deal go through?

 

Thank You

 

-Jason

A.F. & A.M. 211

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The problem that I am running into is, the lady that is selling them too is an investor, and she is not sure if she can get creative financing, which will allow me to do a L/O. If she is unsuccessful in accomplishing this, then I might not be able to close on the house.
Why does the present homeowner need "creative financing"? What is the existing financing on these properties now?
I have good credit, and I could get a loan on these properties (or at least 2 of them). However, I do not want to tie up my credit, or my personal money in the case that I have a problem finding a tenant buyer.

 

My fear is that if I take out a personal loan to cover these properties, then

1) I will have to pay all the loan fees

2) I will get stuck with the mortgage payments, even if I CAN'T find a buyer.

3) I will have to put money down, when I don't have the money to put down.

You have a decision to make, Jason. What do you want to do, and what is your comfort zone? Conventional financing will require closing costs, and in some cases, that can be substantial.

Yes, you will always need to make your mortgage/loan payments even if your property is vacant.

If you don't have the cash to put down, then you need to explore your alternatives. Seller financing, get the deed, third party lender willing to loan 100%, lease purchase, etc. Do your homework and decide which is best for you and this particular situation.

I think a good plan of action is to first determine what the homeowner is willing to do. Once that is clear, you can decide if you have the necessary solution. If you do, or think you do, run the numbers and see if the deal makes sense. If it does, make an offer.

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