Finance an Off Market Deal?

Finance an Off Market Deal?

Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes

I was just curious about creatively finding off market deals for either buy and hold or flips. A lot of people I read about or listen to on the podcast recommend finding off market deals by word of mouth, marketing, etc. My question is, if you're not using an agent and communicating directly with a seller, is it still possible to finance those deals through a bank? Or only with cash or forms of it such as hard/private money, HELOC, business LOC etc. Thanks in advance.

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  • Vendor · Cincinnati, OH · Member since 2014 · 144 posts · 58 votes
    9y

    I don't see why it would be a problem, the issue you'll find is the appraisal. If your buying the house to fix up a lot of banks don't like funding houses in bad shape.  As long as the house is mostly liveable, has working heat, electric, plumbing and a bathroom.  You should be able to find a lender, it might take a few calls and possibly a wasted appraisal fee or two.

  • Warren, NJ · Member since 2017 · 24 posts · 1 vote
    9y

    Agreed with @John Whittle.  The ultimate questions are around loan relative to home value and creditworthiness of the borrower (for simple cases; obviously things could differ).  A contract for sale of real estate need not be blessed by real estate agent for it to be valid and enforceable.

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