Property Investment With No Money After BK
I have just been discharged from a chapter 7 BK for about 48K of debt. I am looking to get into property investments. How can this be done? I know it takes about 2 yr following a BK with re-established credit to obtain a mortgage. Will I need to wait before I can start looking into investment properties?
Quote:
On 2003-09-03 09:00, jjones1298 wrote:
I have just been discharged from a chapter 7 BK for about 48K of debt.
I'm not sure what "discharged" means. Does that mean that you didn't go into BK or you did?
I was under the impression that BK killed your credit for 7-10 years. Is that Chapter 13 (not Ch7)?
Thanks.
I am using hard money lenders who ask no credit questions but only look at the property. They loan 65 to 70 % and will allow a second mortgage as well. I did one deal where I got $10,000 at closing. Their rates are high at 15% and 6 points but if the deal is good enough it is better than a partner. Perfect for buy and rehab and sell or short term hold and refinance when you can. Ameriquest Mortgage and many others will loan 2 years after discharge. Gook luck.
To answer the discharge question: Discharge in any chapter means that the case has been finaled and all debts are either forgiven or paid. A case can be dismissed also which means that you did not qualify or did not make the Chapter 13 payments or other reasons for being kicked out. Hope this helps
Ted Jr
jjones,
Conventional lenders will be a problem with that recent of a bankruptcy and that much debt. It depends on what sorts of debts you discharged (lawsuits v. unsecured credit; personal debt v. sole prop.). But there is a silver lining to the bankruptcy cloud, after your discharge all of your debt is ... discharged. You have a clean slate and a debt free start. Some less conventional lenders, if you have the right income, cash flow, etc. will be willing to take the risk because they are first in line if you default because all your prior creditors are out of the picture. They also know that you can't seek the protection of bankruptcy court again for six years. Also, real estate investors can always take a secured interest in property, something that they can foreclose on if you default and a sum certain that they will receive even if you default; basically they are not an unsecured creditor waiting at the trough to feed on left overs like all the other unsecureds. Try the Lenders on this site and see what you can come up with. Good luck
I agree with Tedjr. It may be that a hard money lender will be a feasable route to take, especially getting started.
[addsig]
Conventional lenders will not lend you any money at this point. If it was chapter 13, you had a chance getting a loan from a BC lender after a year, but not with chapter 7. Your only chance now is hard money lender or owner financing.