Rental Property Investor · Phoenix, AZ · Member since 2019 · 60 posts · 45 votes
Hey BP,
I am looking at a single family home with a listing price of $54,000.00. I have the finances capable of providing a traditional 20% down payment, however, as I have learned it is very difficult to find financing for a property that is that low in value. I am not currently capable of paying cash for the property.
I estimate the ARV to be $70,000.00. If I could pay "cash" for the property and refinance after using delayed financing to get some of my money back, however, I would be leaving a bit more money in the deal than originally planned.
Find a lender/bank that will give you a portfolio loan. That is a type of loan that they hold onto and do not sell on the secondary mortgage market.
We purchased a property in 2016 for 51,000. I had to call 10-12 banks to finally find one who would lend on it. We had to put down 30% initially but the numbers still worked and it was worth it.
Find a lender/bank that will give you a portfolio loan. That is a type of loan that they hold onto and do not sell on the secondary mortgage market.
We purchased a property in 2016 for 51,000. I had to call 10-12 banks to finally find one who would lend on it. We had to put down 30% initially but the numbers still worked and it was worth it.
If you're buying distressed property with an ARV around $70K I would get creative and bring a CASH offer. The amount of time spent calling banks could be enormous. I'd make two different offers, one cash, one financed if available.
The cash offer would be lower but faster to close and more appealing if the seller is motivated.
@Jaron Walling I agree, however, I don't have the private finances to pay cash for the property. I have around 25% cash. But I understand your premise and wish I could simply offer cash today.
@Jaron Walling I agree, however, I don't have the private finances to pay cash for the property. I have around 25% cash. But I understand your premise and wish I could simply offer cash today.
Perhaps you could could try finding a partner (or multiple partners) to go in on the deal with you.