How Can I Get The Bank To Lend Me Money With O.P.M. ?
How can I get the bank to lend me money? I have 5k, but i can get my hands on approx. 50k of O.P.M.
Purpose is for rehabbing & I'm not a corp. the FMV in my area is 250k.
my credit score just went under 600..
Any responses are very appriciated, Thanks. 
go in with a partner.
use his credit scores and you're downpayment. split profits 50-50, or come to some arrangement.
If you are looking to turn the property after rehab you might look at hard money loans. They are quite expensive with very high points and interest but they may be less concerned over your credit. I had a quote for hard money on a rehab not too long ago that covered acquisition and rehab costs up to 65% of the after repair value. You might look at this as another alternative.
With $50k downpayment you can get a subprime loan. However, the lender would want to see that the money is yours and not other investors. So, the best course of action would be:
Sign an agreement with OPM person and have them entrust you with $50k for investing/rehabbing purposes. Place that money in your savings account and let it sit there for a little while. Then when you purchase stuff for rehab, use that money as the downpayment. Of course, you have to consider your cost of funds(lender funds and your private OPM funds) to see if you can turn a profit. Another great suggestion voiced before is to partner with someone who has a good credit score.
Quote:
On 2004-03-30 10:27, compwhiz wrote:
With $50k downpayment you can get a subprime loan. However, the lender would want to see that the money is yours and not other investors. So, the best course of action would be:
Sign an agreement with OPM person and have them entrust you with $50k for investing/rehabbing purposes. Place that money in your savings account and let it sit there for a little while. Then when you purchase stuff for rehab, use that money as the downpayment. Of course, you have to consider your cost of funds(lender funds and your private OPM funds) to see if you can turn a profit. Another great suggestion voiced before is to partner with someone who has a good credit score.
Two things with this option:
1) You would go with a no source or seasoning bank
2)You would more than likely have a prepayment penalty
Lori
[addsig]