Real Estate Agent · Chantilly, VA · Member since 2016 · 245 posts · 61 votes
Hey BP,
Need some creative minds on this one.
I own a duplex in Atlanta and another rental just popped up. It's $150,000 turnkey and it'll rent really well.
I've got to put 20% down. I'm waiting for the 1099 from my brokerage before I can qualify for this loan which they'll probably send to me next week.
In the meantime, I NEED to figure out how to get this property before it flies off the shelf.
Anyone have any creative ideas or access to private financing that can help with acquisition? (Seller won't take seller financing and I do need the current taxes to be done to qualify)
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
5y
Tie it up with an option first...with a very short time period...like 3 months. It will cost you maybe $1000 for the Option Consideration. State the price you will be buying the property for in the option agreement. When you get the 1099 and the resulting financing approval, execute the option agreement buy signing a Purchase Agreement, and you have what you want.
Real Estate Agent · Dawsonville, GA · Member since 2017 · 206 posts · 144 votes
5y
I’m interested in this topic. We just had to terminate a contract due to the lenders needing our 2020 tax transcripts which can’t even be filed until 2/12.
If you have at least a 650 credit score perhaps you can use hard money lender like Lima One?
Rental Property Investor · Charlotte, NC · Member since 2020 · 30 posts · 66 votes
5y
If it's really a steal and you do not have the money, then I'd recommend getting a first position loan (hard money or private) to buy in cash and the just refinancing after you're 1099 enables you you qualify. Even if you were to just financed after getting rented for a few months (from seasoning), you'd be out of pocket nearly nothing at all. Additionally, I'm presuming in ALL of this that you have no equity/notes that are movable with your other investments (because that'd make this even easier to complete). Cash is easy mate, I'd take 8% ROI as a first position on a home ANY DAY, even if you only gave it to me for a few months. If you did that for 6 months before seasoning into a refi, then what's the big cost to you?
Congrats on the deal you found! Rooting for you to get it wrapped up!