Need Letter Of Pre-qualification
I have purchased a couple of propertys with a partner who has a pre-qualifcation letter. After we got the propertys, we then flipped them to other investors. I would like to do this on my own now without my partner. How can I get a pre-qualification letter of my own. I do not have a "job", and my credit still has things on it from a while ago that are not favorable. I am not asking for a commitment from a lender, I only want to be able to get property's under contract, so I can flip them. Woarse case senereo for anyone, I lose my earnest money if I can't find a investor to flip to
much thanks
ask your partner to see if you can use his.
[addsig]
Call up several loan broker. A pre-qual letter is "not worth the paper it's written on". They're very easy to get..
As far as losing your earnest money, try using an option to purchase with a nominal amount of consideraton say $10.
I'm with sammy. Consider using an option to purchase. If you don't have any income or have a means to have someone else cosign for you, your chances of getting a prequal letter from a reputable lender or mortgage broker is pretty slim.
You could keep building your own account till it gets to the point that you can get a letter on your own, even if it takes a little longer than you would like. I am sure it would be worth it, but as i said it might take more time. Also, have you looked aroung your area for someone else to help with your investing and if you find someone, just negotiate a different amout of split with them. Just a thought. Good luck
I just got a prequal letter and I have no job and am in Chapter 13 BK. It is a hard money lender but so what. If I can do it you can too/ I am trying to find a way to pay for the appraisal and get a few hundred for the appraisal without selling my Mickey Mantle vaseball card from 1955 in NM. REO's are harder to do today than in the mid 90's but you can do it. This forum is a great place to boost your confidence. The more people I help the more it boosts my spirits and my knowingness that I can not fail.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
Being a lender, I would pull your credit so I could see what programs you can qualify for and to see your debt to income ratio. If you could not qualify for any of my programs I would not issue you a pre-qual letter. What I would recommend is to start working with a good sub-prime lender and a credit repair company that repairs credit by the trade laws.
"I would like to do this on my own now without my partner."
You should have commented a bit about this firs because "The Right Relation and Location is Everything". . <IMG SRC="images/forum/smilies/icon_smile.gif">
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if you did work with partner only because he had a prequal letter, then I would newer be a partner with you. How about you TedJr? BTW, thanks for an improved responce in other forum ....
Best partners are choosen with qualities that complement our wicknesess,,, but I am with Sammy on the letter too. Tell the agent or owner, you'll give them earnest money on acceptance to be held in esqrow until the same dont close. if it closes, that money would anyhow go against the downpayment so give them a ISF check, if timing is all you care about and you wait to get hard money loan. Your check can be cashed anyhow until the esqroe close.
omega1 [ Edited by omega1 on Date 12/22/2003 ]
First of all "Omega 1" the partnerership I had was very profitable for both of us. His part of the partnership was just to put up the credit end. He had no idea how to locate propertys, run comps find investors etc... The only problem I had with the partnership was that I was tired of having to wait on him for the pre-qual letter everytime I wanted to make a offer or handel any kind of business that was in regards to financing. I have been looking into "lease option" propertys and I think I'm going to give them a try until I get my own pre-qual letter.
CGOODEN, it may not have been your partners fault on how long it took him to get his prequal. You have to remember that it's not him writing the letter. He could have called his LO 10 seconds after you spoke to him asking for the prequal and the LO not really caring about the turn around time. You may want to stay with your partner since it is a profittable relationship for both and next time have your partner tell the LO to get to work, earn his money and get the prequal ASAP. Not to sell myself, but when I team up with an investor I have a relationship with that person and I know what they quailfiy for so I can get a prequal to them in minutes. It is just the matter of filling in a few spots on a template and faxing it to whom ever needs it. A pre-qual is not an approval on a loan, it state with the info provide you should be qualify for x amount.
I understand perfectly that a prequal letter is not a letter of commitment from a lender, nor do I want one. I simply want my own so I have more options, and the ability to get certain propertys under contract, and I can move on my own timetable, which is always quicker than my partner. My partner and I still have a good working relationsnip, I simply want to be able to do things on my own. My partner is not really interested in doing this long term anyway.
I appreciate all the coments and advice on this matter from everyone that responded. I just got my pre-qual letter for 100K from a mortgage broker that my partner and I met when we assigned a contrac to his investor. When I asked him for a letter of pre-qualification for future use, he said sure, no problem he drafted it up for me within a couple of days. What I think a few people who reponded to the post misunderstood, was that I was'nt looking for a lender to make a commitment, I was just trying to get my foot in the door on my own.
well it's a moot point now, since you have your letter. however, i'd wonder why you need one anyway to get a property under contract? just make the offer and sign, they accept and sign, pick a closing date and you're in biz. go sell that contract.
Jackman, e will need when dealing with listing agents.
Tom