What can i do to fund a deal when my financing has fallen through
Hey Everyone,
My Wife and i are newbies at the real estate game and have flipped 1 house in the NJ market and also wanted to buy and hold in the sub 30k market of Baltimore.
Unfortunately we trusted the wrong people to get us funded on a 3 property deal that fell through and now have all our money tied up in litigation trying to get it back.
We are currently working our last deal. A single family house in the Baltimore area (21215) asking was 150K but we got it for 115K with about 50K worth of reno needing to be done. total investment of $165k. the ARV is $280k. the broker who was shopping our funding fell through on this as well and I'm trying everything to get it funded. I'm looking for someone to partner with who knows the Baltimore market and who knows that this would be a good investment for some extra cash flow. So we can fund and renovate the property. We are going to hold the property and refi out in 8 to 12 months. the deal will generate a cash flow $200.00 per month for 12 months and $10,000.00 at refi time please.
Any help or advise will be greatly appreciated. We are scheduled to close on Nov 10th.
Thank You
Jean-Frank Dorvil
#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
- 58,929
- Votes |
- 39,986
- Posts
#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
not sure it helps in this situation.. however you have no gotten the full joker broker treatment.
suggest you get with a direct HML and create that relationship.. go to their office meet the people..
pay the going rate and do your deals.
what you describe above is pretty tough for a partner lender.. not much in the deal given the risk
Thanks Jay,
Sound advice.
#5 Wholesaling Contributor
- Real Estate Broker
- Naples, FL
Try asking Ned Carey. I believe he works in that market. Hope I am not misleading you:)
Thanks John.
I reach out to him.
Well gents here is the out come of the situation.
We were going to go with a transactional funding structure for the deal and the seller agreed to allow me to assign the contract and give me an extension on closing for another $1000.00 which would have put me at $2000.00 in earnest money that would be non refundable should the deal go south. I even had a GAP funder ready to jump in if we needed "Chip Brown " A great guy.I even lined up my "C" buyer but the broker i had working the deal who assured me he could get the deal funded told me he was going on vacation and would pass the deal to another broker who could "possibly" get it done by mid January.
The seller would not go for the length of the extension and I did not like the whole last minute pass off to a new guy so i pulled the plug On it and will regroup and save up and attack it again early Feb 2017.
A learning experience to say the least
Lesson I took away. Get your funding locked in with a good "HML" and don't trust the word of a broker. find out as much as you can yourself.
Thanks for all your input
"BP" is the best place to be and learn from the best.