Financing A Rental Investment
I purchased two properties on a rent-to-own contract (I am single mom with credit problems, I am also recorded on the contract deed). I have been making payments on both properties without missing a payment on either for 1 year . I would like to obtain financing for both properties so that I can reduce the interest rate, pay the owner the balance on the property so that I can rent it out. What kind of options do I have?
Probably the reason no one replied was that you didn’t give us enough information..
The only thing I can take from your post is that you have credit issues and want to refinance..
Your solution is to repair rebuild your credit score using either time or a credit repair company and at the time it is at a point to qualify you for a mortgage refinance assuming that you have the equity in the properties ..
If there are judgments or issues of that nature your best bet may be to sell and payoff those issues so you can eventually obtain good credit.. don’t put the cart before the horse.
Buying property is the easy part so don’t think as though you will never have that opportunity in the future...
And this is a great forum... stick around a little while ad you will see that
[addsig]
www.creditboards.com is another great forum for credit repair. Check it out!
Not much info to go on.
Since you have been on the deed and making payments for one year you could do a refinance. By doing that you could use the new home value and not the purchase price. If you have any new equity you could count that as part of your down payment.
Now what anyone would need to know before giving a good answer to your questions is:
How is your credit,
How is your income,
Will you have any option money going into the deal,
Any money for a down payment,
What is the purchase price and current value,
Can you show cancelled checks for your RTO payments,
For the last 12 months do you have any credit dings,
For the last 24 months do you have any credit dings,
Any big dings, and how long ago,
If you answer those then I can help you.
Try family members and friends credit cards. I bought my first rehab with cash advances from some Credit cards my mother got just for me to use for the business. The cards were issued as business cards so they do not affect her personal credit and I make sure to be meticulous with the payments. I paid off those cards and am doing the same round again. This time the BT offers are 0% for 15 months so I am a happy woman.
If you have a friend or family member with good credit, list them as an officer of your corp and have them apply for the credit cards. You can also try for an Express Loan from First Horizon.
Where are you finding the great deals in Florida? Here in South Fl it has been rather slow and the market is overpriced
[ Edited by linlin on Date 02/10/2006 ]
Yea, I figured whoever I went to would be in the teens for intrest. I have a few people that amy be able to finace.
I find lots in the Sebring area, Ocala, gulf cost mainly. We had an option that if an investor wanted to purchase one of our properties at the price we are able to get them for, then we could write up a contract amending us to the buy. So you as the investor buys the lot and can choose when to sell it. We only ask for 50% of the profit at the time of sale. The buyer would recieve their original purchase price back plus 50% of profit from sale. We will find you the lot and find you the buyer and take care of paperwork.