Private Lenders
Does anyone know of some effective ways on locating private lenders? or know of any private lenders. (Working on some projects at the beginning of the year) would like to have funding in place before starting on projects....any advice would be appreciated
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Eric, please read the forum rules before posting again. You will find the link at the top of the page.
Larry
TCI Moderator[ Edited by LarryNut on Date 10/25/2006 ]
sparklez, you have to get in the mindset that just because someone is motivated does not make it a deal for you. about 85% of the calls I get from people who want to sell their house, I discover in about 2 minutes on the phone that there is no deal for me and I nicely end the call.
there is no deal here unless you short sell the 3rd and 2nd mortgage.
Obviously you are still undecided about what is the ARV. Have you had a realtor pull recent sells? At the end of the day, if you can not determine the ARV, do not do the deal.
How will a tenant pay the mortgage+taxes? Have you determined what are the mortgage+taxes on a 300+ house and what is the section 8 voucher. I have a section 8 tenant in a 4 bedroom house that I bought for $50k and you want to put a section 8 tenant in a 300+k house?
"Seller is truly motivated" - that is only half the battle. "Some other investor will snatch it up with no problems" - idiots are born every day.
There is no deal here. You could look in the MLS and make offers all day long at a 3% discount (which seems like all you are getting between his wanting 325% and he owes 317%) and get 99% of them accepted.
Brenda is right – there is no deal here. At least not based on the information you have provided.
And keep in mind, Zillow is only a very rough guideline at best. Sometimes it can be fairly accurate, and other times not even close.
To get closer to the property’s real value, you need to do some more homework – get a CMA from a realtor, get recorded comps from a local title company, find out what the DOM is currently running, etc. And keep in mind, if you’re in a slowing market, what properties were selling for six months ago is not going to be representative of what they’re worth today.
But even if it was worth $348k, and if it didn’t need any repairs, and if you could buy it for the $318k the seller owes – there’s still no deal here. At least not for a wholesaler. That’s only 8% below value at best.
If it were me I would keep looking.
Just my 2¢
1) is first mortgage fixed or adjustable
2) does first mortgage have a prepayment penalty
3) is the second mortgage fixed or adjustable
4) does the second mortgage have a prepayment penalty
5) estimated cost of repairs
6) is this zoned as a multifamily?
7) are there four water meters and four electric meters?