Rental Property Investor · Austin Texas · Member since 2013 · 4 posts · 0 votes
Just found this forum doing a search on google. I currently have 13 rentals (3 fourplexes) and a commercial building, plus some commercial land.
I have my house sold for 545k, contract on my desk but because of a divorce I got behind on filing my returns. Found a new home that was on the market at one time for 1.3m, is now below 500k and I want to buy it but cant get a bank loan because of the tax returns. Make 300k a year, have 100k to put down and can put up equity in other real estate for collateral. Needing some kind of bridge loan to get enough time for filing my returns then go conventional. Any ideas on some creative financing??
Have you tried hard money lenders? It will cost more then conventional financing but if it's a good deal it could be easier to obtain and would work for the shor-term. You can find hard money lenders here on BiggerPockets or internet searches.
As an aside, even if it's a great deal, you time may be better spent filing your tax returns. Depending on your situation, penalties could be significant.
I just found some hard money lenders on here but in the FAQ section said most of them were 6 mos and that you couldn't occupy the property. Seems like it was more for flips than a bridge loan. Im working on the returns, but CPAs can be really take a while.
I don't know any hard money lenders loaning to owner occupants, due to regulatory issues. You would also incur untold thousands in points and costs with a HML. Bribe your cpa to prioritize your stuff immediately, or assign more resources. Will save you thousands versuw HM costs. Its the off season, for petes sake, even the extended deadline has passed.
I agree with David and Jason, get your taxes done now. Could you put the house under contract with a closing date that gives you enough time to do your taxes and then get a loan? Maybe the seller will go for it with a bigger non refundable earnest money deposit.
Texas, drop money down and take an option, lease it and move in, get your stuff together and pull the trigger.
Better, buy sub-to any liens for as long as you can or arrange financing after a year so that you are in a refinance situation and pay the seller off.
Seller financing if there is no underlying mortgage, cash down, sweeten with other collateral if you have to.
If you can get your stuff together in a timely manner, as mentioned do a standard contract with a future closing and drop money down, get possession prior to closing with a rental amount based on the unpaid balance. :)
Who is the seller of the property that you want to buy? If it's an REO it's unlikely you can get them to give you an option or use other creative seller financing. Hard money lenders don't do owner occupied. Bridge loans are not for owner occupied.
What you could consider is some kind of partnership and/or equity split. If you have $100K down and good income, it shouldn't be too hard to find someone else with enough cash and credit to partner with. Offer them something in return for using their cash and credit for 1 year.
Just found this forum doing a search on google. I currently have 13 rentals (3 fourplexes) and a commercial building, plus some commercial land.
I have my house sold for 545k, contract on my desk but because of a divorce I got behind on filing my returns. Found a new home that was on the market at one time for 1.3m, is now below 500k and I want to buy it but cant get a bank loan because of the tax returns. Make 300k a year, have 100k to put down and can put up equity in other real estate for collateral. Needing some kind of bridge loan to get enough time for filing my returns then go conventional. Any ideas on some creative financing??
thanks for all the input. Its a being a car guy its hard to find a property turn key that meets my requirements (shop, land etc) plus has the number of rooms we need as a family. This property fits the bill so I need to jump on it now if I can make it happen. I think I may be able to get an investor friend to go in with me but if not looks like ill miss the opportunity this time.