Real Estate Consultant · Denver, CO · Member since 2008 · 29 posts · 1 vote
:D
Hello
Has anyone here ever utilized a equity lender (downpayment Lender)? Ive heard 2 different stories... 1 good 1 bad. I dont want to do anything illegal but it seems like a great service to those with limited funds like myself.
They claim to be above board in the sense that they are really becomming your partner and buying into your company. Seems legitamate but....other have mentioned the word fraud...scares me. Please advise.
Ray...
Real Estate Investor · Miami Beach, AL · Member since 2008 · 34 posts · 0 votes
18y
Fraud defined: intentional deception resulting in injury to another person, imposter; a person who makes deceitful pretenses; something intended to deceive; deliberate trickery intended to gain an advantage. If you do not deceive you are not committing fraud. You must disclose where the funds are coming from. These types of transactions conventional lenders will frown upon but if you go the private or hard money route many times they will not care. [EDITED BY MODERATOR - Solicitation removed.]
Marietta, GA · Member since 2008 · 13 posts · 0 votes
18y
i've worked on and off about 2 years with an equity lender and the main thing you have to be careful with is upfront fees. a lot of times once the money is paid its hard to replace and to save your good name you end up paying it yourself. not a good idea in this economy.
Real Estate Consultant · Seattle, WA · Member since 2008 · 134 posts · 10 votes
18y
aramon:
Many lenders require you to use your "own" money, but it doesn't necessarily define what "own" money means. You can receive down payment monies in form of a gift from a friend or family member.
A DP service would be excellent, if utilize appropriately. The key is the amount of equity in the property. In order to utilize DP service to help with down payment, you need a cushion of at least 20 to 40%.