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Updated about 3 years ago on . Most recent reply

User Stats

131
Posts
18
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Thierry Van Roy
  • Maastricht, The Netherlands
18
Votes |
131
Posts

Dearborn, MI: former expat looking for creative financing

Thierry Van Roy
  • Maastricht, The Netherlands
Posted

Hi all,

This topic is not about me but I am asking for a friend who is in a bit of a special situation. I have not been active in US real estate for the past 8 years so my knowledge is rusty and the market back then was still teeming with owner financing, REO properties and wholesalers offering cash financing.

I am hoping to figure out what her possibilities are. Any advice would be greatly appreciated.


She

* has been living in the UK for 16 years and now returned to her family home while getting everything sorted.

* On paper, she is a single mother with no job (she is starting over so in the process of applying, buying a car, already got pre-approved for a credit card with Chase if that means anything etc.)

* no bad credit, but also no credit history (never had a credit card, no loans either).

* However, here is the catch: her partner (they are not registered) works in London Private Equity and makes good money to support her (something like over 6,000 USD net per month). 

* Some of her siblings have good credit and would be interested in putting their name on a property/financing/lease, as the husband provides guaranteed cash flow anyway, but they are not familiar with the whole process

* One sister who works as a property manager and has access to MLS, but she hasn't been on that job for long enough to understand REOs, owner financing etc.

She is currently looking to rent a two bed at 1,300 USD per month with a 12 month lease in these Michigan areas:

*Dearborn

*Dearborn Heights

*Sterling Heights

*Garden City

She said Detroit only if close to the above (so not ghetto).

But at that price I feel she ought to find a property to buy instead.

The problem is of course it would take a few months for her to get settled and get a credit score that would reflect her current situation, so until then these months ought to be bridged with some creative financing.

Am I wrong?

I would be happy to tell her she should just rent for 12 months (according to her sister that is the minimum in Michigan), build her credit score and look again a year from now. But only if that is realistically the smart way forward.

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