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zach
198 Posts |
 Posted - 02/26/2005 : 4:57:23 PM
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This is an investor property in michigan SFR, 100%cltv, 150k loan amount, full doc. Looking for a 6month loan, no payments with 6month balloon payment. Ive never heard of anything like this but just curious?
thanks
Zach |
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midas
4409 Posts |
Posted - 02/26/2005 : 11:30:58 PM
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| hard money loan, inttrest accruing all due in 6 months. not at 100% though. i just bought a property with $120,000 cash out on the purchase at 100% cltv, i guess that would be no payments for 6 months. also you can try a construction loan if you have the plans allready and a future value appraisal. |
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zach
198 Posts |
Posted - 02/27/2005 : 02:06:41 AM
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"i just bought a property with $120,000 cash out on the purchase at 100% cltv, i guess that would be no payments for 6 months"
I don't understand that, what do you mean by 120k cash out on the purchase, where did the cash out come from?
"also you can try a construction loan if you have the plans already and a future value appraisal."
My client wants to take out a loan for 150k for a rehab spend 5k in repairs with an ARV of 180k. Is there a 100%ltv 6 month construction loan out there for this kind of thing? and know of any lenders?
thanks for the reply
Zach |
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midas
4409 Posts |
Posted - 02/27/2005 : 08:59:40 AM
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| why not a rehab loan?? if the property will appraise for $150,000 as is and is not condemed do an 80/20 with a rehab loan. "$120,000 cash out on a purchase", find a home that has potential value but needs some repair, usually been on the market for a little while. offer a lower price with an addendum to kick back the money to a third party for the repairs. after i put $120,000 into this house i will gain $500,000 in eguity. also the way you learn about the business and what is available is by calling the lender reps ("AE") this type of forum helps but the real information comes from calling at least 5 lenders on every loan. |
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midas
4409 Posts |
Posted - 02/27/2005 : 09:12:06 AM
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| also remember if money was free and easy to get, like 6months no payments with no prepay and 100%cltv everyone you know would be signing up. everyone on this forum would have 100 homes each. remember what jeffg says "would you lend your money to this guy"? also apply the three c's of lending. and look at the situation as a consultant not a loan officer looking for a check. the home will only have a gain of $30,000 in equity. the intrest that accrued will be at least $5000, the point you charged plus all of the fees will be at least &3,000, the listing cost to sell it will be 3% to 6% and the capitol gaines will be around $6,000 so your client has allready gon negative on the property, is this really what you should be doing for this client??? |
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zach
198 Posts |
Posted - 02/27/2005 : 12:48:50 PM
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| Makes sense I will run these things by him but I will admit Ive only been in the business for 7weeks so It's not easy for me to be directing an investor. Also I didn't think of it but he has another investment property free and clear so I suppose he could do a cashout on that one or a bridge loan and get his deffered payments. |
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zach
198 Posts |
Posted - 02/27/2005 : 1:08:12 PM
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"offer a lower price with an addendum to kick back the money to a third party for the repairs"
Excuse my inexperience what does the above mean exactly?
thanks
Zach |
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