OfflineOkay, I'm scraping the bottom of the barrel of ideas here, and I am not sure if it's against the protocol of the board to ask this - so MODS, please delete if I'm out of line!
Offer going in today on our first investment - 4-plex REO apartment complex, needs lots of patch and paint, new flooring, fixtures and appliances. Purchase price of $160k, 97% FHA loan at 5% (may come in less, actually!), and monthly rents of $600-675. BEAUTIFUL cash flow, beautiful deal.
We have just expended all our cash helping a family member close on their new house out-of-state (as has everyone else in the family, LOL!), and were hoping to hold off on this offer for another month or so to get some more working capital.
After sitting on the market for 18 months, of course, someone else has now made an offer. So, we feel compelled to jump in there, and not give up without a fight.
Long story short - we need to find $3k asap ($1k of that TODAY, this morning, LOL!) to cover earnest money, appraisal, inspection, and possibly a survey of the property lines. If we can get the offer accepted and get to the closing table, we have a buddy with hard money who will loan us the down (discreetly) and the funds for renovation / repair. After renovation and repair, the complex should appraise out at about $300k.
We've got awesome DTI, about 650 credit score (as of 3 weeks ago), and about $1300 net per week coming in from husband's employment. Also have a few vehicles as collateral if desired.
So, I'm hunting for a lender who can do a fast $3k loan, 90-days or less, simple 10% interest, without pulling our credit (remember, would prefer that mortgage broker not realize how tight we are on this), but I can provide a copy of our score by pulling it myself online.
Trying to be creative (aka desparate!) here!
And again, if this is against protocol, please pull, and my apologies.
Tracey Roberts
It is OK to network and try to find people to partner with or find money, that is not against the rules.
But could you tap your hard cash friend for the $3000?
You said he was going to lend you funds for renovation. So why not move some of that money over to the money you need and some of the repairs put on a Hardware credit card?
Lowes, Mernards,etc
I'm going to call him at 9am this morning, LOL! Desparate times call for desparate measures! I'm sure we'll get it worked out, it's just hairy right now!
Keep the suggestions coming in case I can't reach him this morning.
THANKS!
Tracey
Okay, I think we've got it. Pulled my last $400 from the checking account, sold my little stash of silver coins (boo hoo!!), and wiring the cash to my mom back home so she can go get a cashier's check for Earnest Money and take it over to the real estate agent.
Also wrote up our formal little proposal for our hard money buddy, so we'll see what he thinks about the personal loan on top. That would sure help make this flow, LOL! Otherwise I get to continue my money-scrounging lifestyle for the next few weeks to pay for the appraisal, and possibly inspection and lot-line survey.
This is going to be SO worth it, though! We're looking at $1200-$1500 per month cash flow, on a $5000 down when it's all said and done. AWESOME!
Tracey R.
Good luck ! keep us posted on your deal.
That is awesome!! Where there's a will, there's a way.
What a great deal to get that passive income rolling in! Can't wait to hear more! Thanks for sharing.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Oh my goodness! Praise God! My agent just called and they dropped the price today by $10k!! This just keeps getting better!
Tracey R.
Am I missing a point here? Do you have a HML that you can use. If so, why aren't you talking to them?? I may have misunderstood, if I did, I apologize...Jan
You are blessed! What a great Deal.
Keep us Posted.
Lily from L.A.
I'm new, so does HML mean home mortgage lender? We have a preapproval in the works for an FHA loan (97% at 5% interest), but we're trying to cover the earnest money, appraisal, inspection and lot-line survey, as we are strapped for cash for about the next 8 weeks.
If HML means something else, let me know, though!
Tracey
If HML means something else, let me know, though!
Tracey
I think its Hard Money Lender. correct me if im wrong but I think thats what youre looking for.
You are right...HML means Hard Money Lender.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Can someone expound on "Hard Money Lender" term-how its used/what situation used for and how to find one? Thank you-am new to this...
JER 29:11 Thoughts of Hope; thoughts of a blessed Future
Oh, duh! Well, we have a HML for renovation costs AFTER the close of escrow, when he can put a 2nd on the property, but right now we've got nothing for him to attach, so it would be a personal unsecured loan. I called him this morning, and then he went down and talked to the agent (he uses her too, small town, LOL!) and then we all talked on the phone and he doesn't want to do the personal loan, and he wants to charge a harsh fee for the renovation part now, on top of the 10% interest. So, no personal loan from him, and we'll see on the renovations when escrow closes and we know more where the numbers settle in at.
Just got off the phone with the mortgage broker, and appraisal on a 4-plex will run $600, so that will be my next hurdle!
Tracey