Creative Real Estate Financing

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Sergio Moratto
  • Flipper/Rehabber
  • Miami Dade County, fl.
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LOKING FOR ADVICE.

Sergio Moratto
  • Flipper/Rehabber
  • Miami Dade County, fl.
Posted Mar 10 2023, 03:33


Good morning BP family,,

I am looking for advice on this new activity for my new purchase: I was approved by a funding company for $250,000 in the following terms: 

loan balance                           $ 250.000

Interest rate                              3%

loan term                                  30 years

Number of payments               360

Monthly loan repayment      $1.054 

Cumulative payments          $ 379.443

Total interest paid                  $ 129.343,60

To receive that deposit in my account I must pay a fee for 1125 to them to make it effective,

My question is: is that normal to be able to receive it?

Thank you for any advice you can give me, I'll be attentive.

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Jaron Walling
  • Rental Property Investor
  • Indianapolis, IN
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Jaron Walling
  • Rental Property Investor
  • Indianapolis, IN
Replied Mar 10 2023, 05:49

@Sergio Moratto I can guarantee you're not getting a 3% interest rate. I'd find out exactly who this "funding company" really is. Conventional income based loans, with good credit, from a local lender is double that right now. 

Is this a first time home buyer program? 

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Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
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Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
Replied Mar 10 2023, 05:57
Quote from @Sergio Moratto:


Good morning BP family,,

I am looking for advice on this new activity for my new purchase: I was approved by a funding company for $250,000 in the following terms: 

loan balance                           $ 250.000

Interest rate                              3%

loan term                                  30 years

Number of payments               360

Monthly loan repayment      $1.054 

Cumulative payments          $ 379.443

Total interest paid                  $ 129.343,60

To receive that deposit in my account I must pay a fee for 1125 to them to make it effective,

My question is: is that normal to be able to receive it?

Thank you for any advice you can give me, I'll be attentive.


 This is a scam for sure.  Terms too far below market are fake. How are they able to offer you 3% in a 6% world?

Paying up front for anything besides the appraisal, after you get a house under contract, is a scam!

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Christopher H.
  • Lender
  • Okanagan, BC
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Christopher H.
  • Lender
  • Okanagan, BC
Replied Mar 10 2023, 06:56

Good job doing your due diligence... There is a few red flags here.  

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Dennis Nguyen
  • Real Estate Agent
  • Seattle, WA
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Dennis Nguyen
  • Real Estate Agent
  • Seattle, WA
Replied Mar 10 2023, 08:43

It sounds too good to be true. Get another quote from a local lender and you'll see how large of a difference it is. 

Real Estate Agent

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Joe Biscaha
  • Realtor
  • Miami, FL
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Joe Biscaha
  • Realtor
  • Miami, FL
Replied Mar 10 2023, 09:26

Thanks for sharing and checking, thats what the form is for. As others have mentioned this doesn't sound legit. 

If this is a legitimate loan you should be able to ask for a Loan Estimate from the loan officer. I doubt you are getting a 3% rate. 

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Sergio Moratto
  • Flipper/Rehabber
  • Miami Dade County, fl.
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29
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Sergio Moratto
  • Flipper/Rehabber
  • Miami Dade County, fl.
Replied Mar 10 2023, 16:27
Thank you very much for your invaluable information, thanks to: Jaron Wallings, Steve Vaughan, Christopher H, Denis Nguyen and Joe Biscaha for being here as advisors on the bigger Pockets Family. Thank you.