BiggerPockets

I would second what Michael said, a small local bank that keeps their loans in-house (a portfolio lender) should have no problem loaning you the money if you have good credit. I have talked to both of my small local banks in the past couple of weeks and they both told me that they have money to lend.

Good Luck,

Mike

I am going to fourth this. Go with the small banks. That is all we use.

Share your "vision" with them. If the banker senses that you seem on the up and up and you have a solid business plan, they may become more flexible as you prove yourself to that lender.

The big guys are a waste of time, they may be good for BLOCs, but are to stringent and narrow minded when it comes to portfolio loans.

If you're going to be in the flipping business, then I would get a line of credit. You can then borrow from it when you like and pay it back when your deal closes. That can be repeated over and over!

Mike

Terry,
Here is another option. If you can afford to pay cash for the property, do so. Once all repairs have been made call the bank and tell them that you want to permanently finance the property. Many banks in my area are still doing 75% loans based on the after repair value. The trick is to find a house that you can buy and fix up for less than 75% of the after repair value. If you do this, get the permanent financing in a HELOC (Home Equity Line of Credit). A HELOC basically works like an open checking account so you will be able to immediately pull the money back out. Keep in mind that many banks have gone to what I believe is a 1+3 policy meaning you can have 1 personal residence and 3 investment properties, although some are more strict. You should check with some of the smaller banks and find out their criteria then work from there on creative financing.

Hard Money is always available. You'll probably pay a little, but if the investment is sound it should work out. I'm a wholesaler and I've done it 20+ times in the last 2 months. You just have make sure that the ARV is going to be high enough.

Have you looked down the "land contract" avenue? As long as the contract is filed at the local County Clerks Office, or Register of Deeds Office, There should be no problem refinancing after about 6 months of seasoning. In this time, you would have done all the repairs and leased it out.

I'm still new to this thing but a good angle on this land contract is that the greed of the seller will end up getting you a GREAT deal. Let me explain...
If you can physically show the seller the amortization schedule, letting him see how much money he will make by financing the home to you... Lets say you offer 30K on the 35K property, with a 2K down payment your principle balance is 28K... then offer to pay an OBSCENE interest rate... like 20% amortized over 20 years... that would be a total of $114,161.01, With a monthly payment of $475.67. That's when he's like WHOAA! Sure thing! The key is letting him see that hes making gobs of money on this deal... then repair, appraise and refinancing ASAP!
Thatch just a little idea of mine... Any advice on it from anyone is greatly appreciated..
Thanks,
Dustin

I was just throwing the numbers out there over dramatizing a bit I guess. but your right... 10/20 sounds good, wanna buy something from me? lol

I have to agree with some of the advice from the above posts. Going to small local banks is a good suggestion. Myself and other investors I know, have used small local banks for financing.

I actually did very well by asking the owners to finance the properties short term-- many realtors told me this could not be done but I was able to buy many beachfront properties in the Panhandle of FL with owner financing and very little out of pocket- many of these people had these properties for awhile and it was a steady income-- you may have to pay alittle more for the financing, but it saves you from going to the bank and it also keeps the deal off your credit -- only works in cases where the seller is not in financial distress--i even talked a bank into owner financing vs going through conventional financing when there was an estate involved-- you dont know if you dont ask!