Pulling Out Equity
Just curious, is there any way i can do this?
I have my eye on a property worth 850K that the bank is selling for 450K, doesnt even need any major repairs etc.
I have a buyer ready to purchase at the 850K and i would like to get it at about 80% financing for the buyer, the question is how can i structure this so that I can make the money in the middle?
I have heard about hard money but they dont provide enough to cover the deal, is there anyone who will finance the first purchase so it can be resold?
I might sound a little novice, but the flipping arena is new, the selling isnt for me.
thanks
Simultaneous closing. Ask your RE attorney.
Yes I sense it is like that, but i get mixed reviews that "simuls" are illegal etc, i kind of understand why because for a few minutes you are selling something you dont own.
I just want to do it the right way, even if it takes hard money or private investors to close.
I handle all avenues, from property location, to buyer financing, leave nothing to chance...too many lazy slow Loan officers.
I read the question and all the responses, and I am lost.
You can get the property for $450K. A buyer is willing to pay you $850K. You are asking how to get the buyer 80% financing?
Why is that your problem? As far as you are concerned, the buyer is paying you $850K in cash. How he gets the purchase money is not your problem.
What am I missing?
Double closing are not in any way illegal. Alot of Title companies do not want to do them because of fear of fraud, but they certainly are legal. get an experienced attorney to work it out for you.
JackBe,
I am also gathering that the buyer has no cash for his 20% down payment. Also, the seller has no cash to play with. In your scenario, the fly in the ointment is that the lender will want to see proof of funds. Meaning someone will have to have some real cash somewhere.
Also, the legality of your plan could be called into question.
There are lenders today that will lend 100% with a seller carry stated/verified. 3 months piti is all buyer needs. Cash created from purchase on escrow #1. Please tell me how this is illegal?
there is always cash....that is not the problem...the issue these days is that there have been so many rip offs in the mortgage industry it is getting hard to do legit deals...
jackbenimble,
I have talked to several mortgage brokers who say that lenders are no longer accepting mortgages where the seller carries a second. Could you PM me with the name(s) of the mortgage brokers you would recommend to do these kinds of deals?
Thanks,
What area is the property located in? We possible can help fund the downpayment for an equity position. Is it in southern ca?
What happened? Do you still need help, if you do, just let me know and maybe we can help,
I was sent credit apps for 10K line 2 wks after forming an LLC.
Mid-score of 700.
Unsecured lines of credits from local banks can be expensive, but you see to be assured 10K.