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Bank Foreclsosure

wangui profile photo
  • Thursday, July 31, 2003 @ 10:19 AM EDT
  • 6 Comments

I found a foreclosure through a realtor. The house is listed for 114000. It requires around 15000 to rehab. A good house in the area is going for 169900. I spoke with my realtor and the bank is willing to take 100000 on it. The problem is that the bank is requiring me to show the proof of funds. What should I do and my intention is to flip this deal and I dont have funds like that to show?
Wangui
confused

Comments(6)

  • no photo
    2000rock21st July, 2003

    wangui,

    Get a HardMoneyLoan for 70% of the after rehab appraisal value..

    $170000x.70%=$119000...

    $100K to bank...
    $19K to rehab...

    Your interest rate will be higher but your back end profit will be aprox. $50K

    As I see it!!


    ....as always,


    GoodInvesting, Rocky

  • Stockpro99
    Stockpro9921st July, 2003

    If you have done your due dilligence then you could probably post to this site as "investor needed". YOu could also go to your local RE club members and see who is interested.

    I would pay a reasonable finders fee on a property like this one appears to be. If you waited until I rehabbed and sold it I would probably double the amount.
    I am sure there are others out there like me.
    You might also do the following. Make them an offer contingent on their financing the 100k vs 85k all cash. You might be surprised.

    LACASHMAN might be able to help you as well

    http://liborhomeloans.com/

    or

    Brookview financial
    [addsig]

  • no photo
    goju22nd July, 2003

    Who typically offers hard money loans, investors at local REI clubs?

    Thanks.

  • no photo
    22nd July, 2003

    investors, agents, brokers, etc at your local REIclub should have some contacts with hard money lenders.

    If all else fails do a search on the internet for local lenders, or look in your daily paper in the real estate section.

    good luck.

  • no photo
    wangui28th July, 2003

    stockpro99 draftee investor,
    I live in Nj, can you still fund me. You live in Orlando right? I can always assign you deals if it doesn't matter where I live or you fund me I fix and then resell the deal we split the profits.

  • chris_4749
    chris_474931st July, 2003

    How were you intending to complete the purchase of this property? If you are getting a mortgage of any kind, a simple approval letter will do in most cases.

    When paying cash, I recommend a letter from your banker that simply says you have sufficient funds to complete the purchase at xxx address for xxx dollars. and nothing more.

    When using partners or other sources of funding, you will have to be more creative.

    thanks,

    chris

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