We were planning to put 20% down and get a mortgage for the rest ($20,000). I just talk to the guy we were planning on getting our mortgage through and he told us our application would most likely get denied because we don't have a lot of liquid assets (only a few thousand a piece) and because our debt to income ratio is too high. He said our credit is great and we obviously know how to manage our debt, but it is too high at this point fr them to consider such a small loan.
So... we need some advice on how to finance this deal. Our closing date is December 30th. I'm thinking we are going to have to find a private investor or find a HML.
Any suggestions or advice would be greatly appreciated.
$20K loans are a problem, you're basically talking about "car loan" territory here. The first time I bought a place that was so cheap that I couldn't get a "conforming" loan, ( I was offered 3% over market rates, plus 4 points, etc-you get the picture) I contacted my brother and he came in "halfsies" with me.
I realize that you don't have much time to do it, but you could earn a lot of money between now and Christmas. That would increase the amount that you guys are putting in. Then find a "sweetheart" to come in with you.
The reason for the term sweetheart here is because the kind of money you're talking about is best obtained from someone who loves you!
With excellent credit, you should be getting those 0% credit card offers in the mail every day. Capital One and other credit card companies will give you a line of credit fo up to $100K very easily. Then, in a year or so, you could refinance.
With excellent credit, you should be getting those 0% credit card offers in the mail every day. Capital One and other credit card companies will give you a line of credit fo up to $100K very easily. Then, in a year or so, you could refinance.
Mike
How would you purchase a property with a credit card? I would think that most sellers wouldn't be able to accept credit cards.
The for the advice. We ended up finding another company that would give us a mortgage, and we only need to put 10% down.
There is another property that I am looking at now. It is a 4plex. It was listed with an agent several months ago, then before I got a chance to look at it it went under contract. It recently came back on the market, but when my agent talked to the listing agent he said it was still under contract. But I got word from a friend that the listing was going to expire and the sellers wqould take $30,000 for it (they have it listed for $49,000. Gross rents are $1650 with all apartments rented, but one of the apartments is vacant now as they were in the process of rehabbing it.
So I'm going to start looking for more funding for that.