Anybody Familiar With Reverse Mtg Refi/flips?
an investor brought me an idea where he buys a foreclosure, fixes it up waits 3 months and sells/refis it to a senior citizen at appraised value using a reverse mortgage program. anyone heard of this?
that is the idea. use the equity spread between the low buying price and the new legit appraised price asa % of the refi or sales amount that is then amortized over 30 yrs and paid to senior until death. property then reverts back to lender. investor gets paid% on front end from equity spread. apparently this is all a legit transaction - but i guess no one on this forum knows of this?
Perhaps you could partner with an investor. Borrow from relatives/friends.
I assume you realized an increase in the value with your renovations? Offer a 2nd mtg on your newly improved investment property as the Down Payment on the next property and get a new loan for the remainder. You will then own the new property with only a 1st loan on it. Improve it and increase the value and do it all over again.
How much down did you need to come up with?
how difficult were the hard money people to deal with?
"Ithink if we run into another property we think is worthwhile"
I think you made a very good deal with this purchase, its unfortunate that you lost all your profit due to financing issues (25k++lender/closing costs). In the end, because of equity, you should work out fine.
But if you purchase another prop, in your situation, you will be one or two renters from losing everything. I wouldnt even consider another house until u got this thing under control.
Just my 2c
Quote:
On 2009-01-07 09:16, smitnlit wrote:
I plan on using ANY money we make to put towards extra payments.
You may want to consider setting up a reserve fund for unexpected expenses/vacancies before directing money to extra principal payments.