REO
I'm still trying to figure out how to purchase an REO property that is selling for $96,900 and worth $115,000. My goal is to resell to a retail buyer. However, I don't have the funds or good credit. Does anyone have suggestions?
No credit ... No cash....
start farming for private investor money... get them lined up and commited....
then offer up all cash offer on the reo...
in your case I would offer 80-85k all cash close in 3 weeks....
L/o property out for one year... sell!
there's one way
Dave/ everyone,
Do you have any methods for finding private investors that have worked best for you. I have been trying to find investors with 50-100K, I have found a couple with less which really doesn't help me. Has anyone had luck running a newspaper ad in the business opportunities section.
TBARBER
TBarber,
That's the problem with most looking for private funds, they can't find one person with enough money for them to use.
However, thinking creatively, you can quickly overcome this problem. If your target deals are about $100K, don't look for someone with that amount to borrow, find 4 people with $25K.
Only found $25K? 20% down greatly improves your odds on getting a mortgage and a better rate. If you qualify for less down, use the remainder of private funds to rehab and make the monthly until sold. Having a mortgage will help improve your credit also (timely monthlys and a quick payoff).
Just another way to look at private funding.
Roger
I have found a private investor. His idea is for me to lock the property under contract and sell to a retail buyer. At the double closing, he will buy the mortgage note for a 5% discount.
I could be wrong but since he will buy the mortgage note couldn't I offer the bank all cash.