Everything Is Getting Tougher. HELP!
I have a 690 credit score. I am in process of buying my first rental. It is a foreclosure and I was using NCSECU with 100 percent financing. Well they did an appraisal and it came back really low and they told me I need 20% down because of damages nothing structural the house is only 4 yrs old. I finally found a lender that would do it for me. In the process of calling a ll the banks in the area they all said I would have to wait 6 months to year before I could take out a Home Equity Line of Credit and one bank said I would have to have my credit in the 700s. I just graduated college I dont have much money and it will cost me probably 3000 max to fix the property and have it ready fort rent.
My Questions are
Is there anyway around waiting 6 months to a year to get line of credit so I can buy another? Also without high rates?
The 3000 will go on my credit card so my score may drop lower so it will be harder to get a HELOC?
Im 100% into starting this business and I want to keep buying and eventually I want to buy apt complexes.
What I am missing here?
All these books act like its so easy to go right out and buy as many properties as I want but thats not the case?
I know my credit could be better and trying to increase my score to get over the 700 mark.
My current job sucks I dont make much money and I dont have a lot of money saved because living expenses and college took it all lol
My student loans of 38,000 come off deferment in 6 months and I need properties? I know it can be done just need some guidance
thanks
joe
Given the credit and real estate market is your expectation to get 100% a bit out of line?
Well SECU offered me 100%. I figured make the best of OPM on my first one. Actually I didnt ask for 100% when I called around but I also dont have the cash on hand to put down 20% either. They told me 3% down and that I would have to do a construction loan to get the property fixed, then I could purchase it.
But thats not the problem I found someone to give me a loan. I am wondering how to take advantage of my HELOC without having to wait 6 months or a year for it to season. After i fix the property I will have 63500 in it including loan and closing cost etc. The tax value is 100,000 and the comps around it are 100k and over.
NC Yank I have did my research and do know what I am doing as far as findinf a money making property. but we can always learn more. I just thought I would ask on here for more suggestions about getting the money out to use again. If I have to hold the property for six months and that is the only way then fine my process will move just a little slower. As far as your comment about all they TV shows from your link DIY programs I dont watch that BS lol I know alot of people want to do it becasue of those stupid shows.. I dont want to flip. Im going for cashflow and building a portfolio. I have found a few properties that are good but I moved to distressed homes. Everytime I found a house on listingbook in my area I would do my .65/.75 rule to make my offer. Well I found out alot of thiese new do it your selfers are paying full price or biding over the asking price, now that is BS
I suggest you check around with some local banks in your area. With a high Fico score like you have, they may be inclined to work with you.
Brandon
Joe,
You hit the nail on the head when you said that too many people are buying distressed properties at full asking price. I guess that is what gets me.........mention the word foreclosure or distressed and lenders think or know they will find some sucker to buy at full asking price or close to it.......yet I am sitting on an upper end spec home that is listed 40k below tax value and over 70k below original comps........go figure.......maybe if I put distressed on it or let it go into foreclosure I might make some money.......but I digress.
I will say that one must do their home work when looking at these properties...........simply taking figuring 65% - 75% of listing value can and will burn you a new one. I have inspected plenty of homes where even 50% was to high yet the bank / lender refuses to budge on their price..........again its because their are too many suckers in RE field who are paying full price.
BTW, my post was not intended to demean you in anyway......if it came across that way than accept my apologies.
Good luck
NC_Yank
No worries lol One of my friends is a home inspector and he tells me alot about what different investors are doing and how alot of people are paying way to much for the properties. Hopefully it will get better lol
Loan Modification - Loans adjusted for rate and/or adjustable to fixed with a plan on how to pay for accrued expenses of the foreclosure to some point.
Forbearance Agreement - Where there has been a temporary hiccup with income. Both parties agree on a repayment to get the loan good again sometimes with expenses incurred added to the back end of the loan.
Short Sale - House sold to investor who has worked a short sale or occupied buyer via agent for lower price.
Subject To - Investor steps in to make up back payments and pays monthly.
House Sold - Either through Realtor or Investor.
These are a few that I could think of that are quite common.
ic