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Updated over 11 years ago on . Most recent reply

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Brie Schmidt
  • Real Estate Broker
  • Chicago, IL
5,169
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Need 100k by Monday - ideas?

Brie Schmidt
  • Real Estate Broker
  • Chicago, IL
ModeratorPosted

Before you tell me how insane I am.... trust me I already know.

So, we are in multiple offers to purchase an occupied REO property. It is sight unseen, no entry. So no inspection, appraisal, ect which is why I am in the pickle and looking to the amazing BP community for ideas.

Before you tell me I am nuts for buying sight unseen.... I have spoken with the agent who has rented this building out for the past 8 years so I do have a good idea of the condition. I also own a building 300 feet away and have been looking at every single listing there for 3 years so I am familiar with the market.

It is tax assessed at 400k

We put in two offers 100k cash and 280k with a conventional 75% LTV and they came back to all of us and so no entry even for appraisers so we had to drop the financed offer. So I would like to up my cash offer to 200k. To do that I need another 100k with POF. I don't actually need the funds until closing. We have already been approved for the loan on this against our personal income without any leases needed to qualify (but can't enter to do the appraisal until we own it). So our plan is to start the loan process now, and the day we close order the appraisal and then finance conventional and give the 100k back plus whatever interest/fee necessary. So we should be able to return the funds within 30 days.

I found a HML willing to do this. The problem is he can only fund to a LLC and then we might not be able to get the conventional financing from the LLC to our personal names (my lender is looking into this, will know monday)

So BP - What are my options?

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