PLEASE HELP!
I've found several deals but can't get financing.
I don't have any cash avaiable and here are my credit scores:
FICO
Trans Union - 626
Experian - 610
Equifax - 574
Can anyone refer me to a hard money lender. I've tried the ones listed on this site.
Your scores look darn good to me. Try some more conventional sources . Do not give up the ship for a small hole. Hard money is good too but way more expensive. Call 5 new bankers tomorrow and one will do deals for you
Hope this helps some
Ted Jr
What do you want to do with the properties after you acquire them?
After I acquire the property I plan to rehab them and resell.
Do you have a regular paycheck, or self employed, or unemployed? Your scores are okay so there must be another reason you are having trouble getting a loan. If you are self employed, you can try a "stated income" type loan, (rate a little higher but less documentation). If you are unemployed then there could be further hurdles. Might want to try a mortgage company, they often have hundreds of lenders but costs are higher. If you have no money at all to put down, you might want to look at owner financed deals, or deals/loans where you can get a 2nd note for the amount of the down payment, or offer 20% higher price and request that the seller rebate you 20% in escrow for repair work, (assuming there is work to be done).
Maybe you could access down $$ through credit cards......but be careful not to get into a situation that you can't get afford or where the prop won't make financial sense.
More importantly, you should figure out the real reason you haven't been able to get a loan and do what you can to correct that for your future real estate investing. If you still can't find a way to finance these great deals you've found, you still might be able to make some money on them by bird-dogging them out - or by flipping them before they close.
Good luck !!
I echo noel2 comments which is why I asked what your intentions were.
Two reasons why you may have been turned down is (1) you may not have sufficient income and (2) the lender may not be willing to lend on a property that has a lot of rehab to be done. There is money out there that will fund based on after repair appraisal, but it is essentially hard money.
If you have a home or if a trusting friend or family member has one, you might consider a Home Equity Line Of Credit (HELOC). I have found these to be very good for acquisitions. The interest rates are very low.
Hi Yhagood,
Have you read "The Power of Private Money'? If not, click on the link below!
http://www.thecreativeinvestor.com/Article437.html&mode=thread&order=0&thold=0
Best of Success!
BAMZ
Make sure you don't shop around TOO much. I know someone who had a deal shopped to the point it trashed their credit. They were at 640 when the started and ended up at 580, all from shopping the deal.
That is a good point telemon! If they are pulling your credit at every stop, you will wish that you had not been proactive!
However, when locating other HML's, they will generally loan you money based on the property value, not necessarily your credit score. Therefore, do not give them your SSN for a preliminary conversation, they will be able to tell you the rough loan cost over the phone. In addition, I have never come across any "Private Money" who has asked to pull my credit!
So there are other options for you, but as Telemon said, be careful on having your credit pulled needlessly!
Best of Success!
BAMZ
Why not take those deals and flip them to other investors, pay down your debt with the profits?
I thought that you couldn't flip REO Properties?
Let me guess; Since you don't have cash to make a down payment, you've been asking for a 100% loan...right?
The scores are borderline for that kind of loan... The poster that said to look for a mortgage broker was right on the money. Between a mortgage broker and a grant program, you should be fine for one property at a time.
hope this helps,
clear2close
[addsig]
I have not tried to get 100% financing. I'm looking for a hard money lender that will loan up to 65% of the APR Value.
I don't know of 1 hard money lender who wouldn't do that...
Type "hard money lender" in Google...
clear2close
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Assistant Vice President (Senior Loan Officer) / REI Millionaire Wanna Be[ Edited by clear2close on Date 11/22/2003 ]
Quote: I have not tried to get 100% financing. I'm looking for a hard money lender that will loan up to 65% of the APR Value.
By "100% Financing" the poster meant you weren't putting any cash down on the deal.
Try to find a mortgage officer and ask them this:
"What will it take to get this loan financed?"
If they say nothing, move on. If they say $5,000 down, try to negotiate that number. That way, at least you will have something to go on.
Brandon