I am a seasoned investor but after a divorce my ability to qualify for investments with his income being a backup is no longer available to me.
I am having to start all over. My only income now is coming from two commercial properties I sold on seller financing back in 2009. Unfortunately those payments are ending soon and I need to get something into the pipeline. I have secured a sfh in Texas on acreage and plan on doing a BRRRR. Here are the lending obstacles I have come across in the past two days after signing the contract: 1.) Sorry we don't loan on rural properties
2.) Sorry we will need 30% down plus points..
3.) Sorry you will need to show that your income will continue for at least 5 years.
4.) Sorry you will need 2-3 months of reserves plus 25% down
5.) Sorry we only loan on the appraised value or the purchase price - whichever is lower- it doesn't matter if you got a great deal
What should I do next?
Am I am looking in the wrong places?
@Christy Kupiec tough for me to give advice as I haven’t been in this exact position but I would ask - have you exhausted ALL banks/lenders in the area?
Also have you considered partnering with someone to get the deal done?
As the peeps say
“50% of something is better than 0% of nothing”
Best of luck!
Thanks Sean. I had a good idea today to call a property manager in the area to see if they knew anyone wanting to JV. You are absolutely right about that is better than nothing!
Starting over, as frustrating as it is, may also be a great time to break out of the traditional real estate mindset. Start thinking creatively. You've sold property with owner financing so why not start buying with creative structuring. Owner financing (1st, 2nd liens) eliminates the problem of purchasing with institutional financing. Start building relationships with prospective private money lenders (retiree's often make great PML's) and with seasoned investors in your area. With the right relationships, you'll have most of what you need down the line. Spend whatever available money you have on marketing and whatever available time you have driving around looking for prospective deals. Sounds like you need cash flow soon so you have to think differently and work differently.
@Christy Kupiec If you're planning to owner occupy that SFH, and it's outside the city limits of a major city, you might be able to get a USDA loan to buy it. Since on USDA loans, you can go up to 100% LTV (depending on appraised value) if it's an owner occupied SFH.