Investor · Dallas, TX · Member since 2017 · 18 posts · 8 votes
I have a Property worth about 110K in Dallas TX, I owe 60K. I financed with private lender at 9% interest because I could not qualify for a loan 6 years ago, now I might qualify, my credit score is in the low 700s I make about 60K a year but my credit history is only 2 years old. I currently own another house that is vacant because I do not have the capital to fix...My question is; If I'm trying to qualify for a traditional mortgage for a 3rd house and also trying to fix my vacant house, should I go back to my private lender who would lend me an extra 20K and charge 4K to do this. The lender would then ad the 24K to the note (at 9%)... Or is that money too expensive? Should I look for other type of financing?
if anybody can point me in the right direction please
If the 3rd house is a great deal, wholesale it and concentrate on the vacant house. Vacant is a bad word to investors. Vacant should be eliminated as quick as possible. Vacant does not make you money. The longer the property is vacant, the more you lose. FOCUS on getting the vacant property taken care of so that you have some money coming in.
And yes, that money is too expensive. 20points and 9% interest is a little excessive. How about a friend, relative, or co-worker. Talk about what you are doing to others. When you ask someone if they know of someone who wants to invest 20k into a deal, you might get a "I do". You could give them the straight 9% or maybe even a little higher for being in2nd position.