Financing Foreclosure First Time
I'm trying to get started in the REI "biz" and I was hoping to purchase a foreclosure property and either fix it & rent it, or just sell it. My financial stats are as follows: FICO 630, cash in hand $6k, $15k in equity in primary residence. I’ve spoken to 2 different lenders & both have told me that since this is considered an investment property I’ll need 10% down and 6 months’ mortgage as backup.
Most foreclosures I’ve looked at in the area I prefer are at least $150k so the cash requirements are killing me. Does anyone have any ideas as to how I can get around the cash requirements or if this is even a good idea given the fact that I’ll be purchasing a “fixer upper”.
I suggest that you spend a couple hours each evening and browse this, and other message and newsboards... get a feel for what is being discussed. You'll find a lot of hype, a lot of self promotion, a lot of off the wall stuff... but also some valuable insights.
Set some realistic goals, formulate a business plan and stick to it.
tkorwow:
have you considered, perhaps, using a partner to help out with this deal?
I had a partner in a previous business and I would prefer to stay away from that. I just read a previous post from Vern who used construction financing to improve the home then rolled that into conventional financing.
Is anyone aware of other alternatives?
Hi tkorkow,
Call this number and ask for James 318-547-2574. I talked to him a few times and he definately knows his stuff. He might be able to Help you out with some options.
Good Luck,
Ryan