Is there 100% financing?

Question

Hi! I am new here. I wanted to become a real estate investor and got all the way up to where I couldn't buy any because I M BROKE! Is there such a thing as 100% financing? I can get good deals (70-75% LTV) but need to close in 10 days. Please Help!

Tay Gainey · Answer

Actually 203k is the option i was going to mention, but i have not experinced the harshness of getting the loan as stated. True it is score driven but the requirements are very much easier than hard money. The rates are better also. You will have to weigh the good and bad for yourself. Wait 4 weeks get good rates, wait 7 to 14 days get high rate. But there is a hard money lender that doesnt rely so heavily on your credit as much as if the deal makes dollars and $ense. Since i am not allowed to promote any business in this forum i will not say the company's name but if you are interested please PM me and we can have a dialogue. I am a builder/ investor not an artist, so i am not in the business of painting pictures of something that is not there.Thank you.

Daryl Crabtree · Answer

Hi. I am grateful for your comments. Someone posted a personal message to me that said they would take some time to help me. I sure appreciate that! But when I tried to reply, I found out that I haven't posted enough messages to reply to personal messages. :badwords: I will be happy for the help, but must be a more seasoned Forum Discussion Member.

Scott Miller · Answer

I thought I'd clarify a misunderstanding some of you seem to be prescribing to---the 203k is not credit score based (when you manually underwrite---such is true only when are going AU)...

Regards,

Scott Miller

Daryl Crabtree · Answer

There's a house worth $185,00+ that's selling for $114,000 if it's not already sold. Will anyone finance me 100%?

Scott R. · Answer

I say chances are slim.. one thing I have learned the hard way and read 100 times on this board in the last few days.. 50% is going to be expenses.. so your going to cut your rent in half, and only be able to pay your mortgage out of half of the rent.. anything left over is cash flow.. Recently moved from Tucson.. active member of the phoenix MLS and tucson MLS.. dont think theres MANY if ANY properties I EVER EVER found in those areas even not on the MLS that would cash flow with those terms. Thats why I moved to Texas!  :lol: 
 -Scott

Daryl Crabtree · Answer

I would be more than happy to contact you, but I cannot write personal messages yet. I typically would have to close in 10 days with the deals I have been seeing. They could be as high as 75% ARV, but there are some 70% or less. Some of the houses I would like to buy are already rented. If I could get a loan for them for 9% or less, they would cash flow. If there is any possibilities, let me know and I will sign on the dotted line.

Daryl Crabtree · Answer

Hi. I am posting another message to help me get more posts, and I have a question about a property. It is worth $220k-225k,and is selling for $169900. It's already rented for a year, and they have an option to purchase at the end of the lease. They will pay $600 a month +  $9000 cash at closing. Can I make a deal like this pay using hard money? :roll:

Jon Holdman · Answer

Daryl,
Try saying hi to new people in the new members forum.  You can pretty quickly get up to the 10 posts.

For this topic, you should start a new post under Real Estate Deal Analysis (once you have the 10 posts.) Otherwise, it will get lost under the current topic.

But, a quick response.  Hard money is going to run somewhere in the 12-18% range.   For a 169,900 property, that means monthly interest is going to be at least $1,700, up to $2550.  Pretty tough to cover that with $600 coming in.  Lease option is still a lease, and you need the rents to be in line with the purchase.  Hard money is really only useful for short term rehabs.  Once the place is rehabbed and acceptable to conventional lenders, and if you intend to do a long term hold, you need to refi into terms more acceptable for long term.  It can work for your situation, since the hard money lender will loan you the purchase price plus rehab costs, and then you can do a cash-out refi based on the improved value to pay off the hard money lender and end up with little out of pocket.  But, it still must be a good deal for a rental.  Paying $169,900 to get $600/month in rent is a very bad deal.

Jon

Ben Carmona · Answer

Terrible advise but here's some sound advice.

Be very careful of people telling you how to structure deals.  Many loan officers in the mortgage industry will do this just so the deal can get done.  Top 2 to watch out for.

1.  Increasing your income more than what you really make
2.  Saying the property will be a primary residence when the intent is to either rent it out or turn around and sell it.  Generally, lenders will have you sign an occpancey affidavit that says you'll be residing in the property for up to a year.

Matthew Giegerich · Answer

Daryl-
 What he is talking about is an FHA 203(k)  rehab loan . they are very intensive and based on credit and income. they also take about 45  days to close due to all the necessary rehab reviews. better to find a local hard money guy and work with them or your partners credit and income.