Question About 100% Financing
Here is my situation. I am doing rehabs in my area. The rehabs that I am selling are mainly going to be to investors. I set them up with tenants and if they are new investors, go through tenant laws, fair housing laws and that sort of thing to get them off on the right foot. Now there are a few people doing the same thing in the area that I am in. They have created a sort of Nich selling to other investors this way. Now my niche within this niche I suppose is that I done' need to make the profit on the sale of each house that these other guys do. That means that I am getting them better cashflow per month and reducing thier outstanding debt. My question, is when I am getting my buyers financed, they are going to be purchasing the houses for around 20% less than the appraised value of the house. From your experiences, s it going to be hard to get my buyers into 100% financing for the homes? I mean I know that thier credit scores have quite a bit to do with it, but I am just wndering about requirements and that sort of thing or if it is even feasable for me to do it this way? Just want some thoughts on the matter. Thanks
Oh and I completed my irst flip this week! Whoo hoo!
Joe
[addsig]
Good Luck. I have contacted all the Lenders in my state under the Lenders tab. Half said they couldn't lend in my state. The other half said they could do it. I gave them all the info including my credit reports which are good and then they never follow through. You might have better luck though since you are working with SFH's. Just don't let them hit your credit until you know they are legit and you are interested in working w/ them. It will bring down your score. Congrats on your first flip! [ Edited by studlee on Date 05/29/2004 ]