3 family, bought for $30,100.

11 Replies

I have about $25k in my pocket; but am scared to be broke here. Picked up a 3 family foreclosure auction. I am seeking a hard money lender, or buyer perhaps, at this point. Can anyone give me some pointers / point me in the right direction?

I have spoken to a few hard money lenders, and either I'm not borrowing enough or it's just not worth it to them because I need such a small loan (maybe $30k just to make me feel comfortable; as this is my first property ever.)

Here is the property:

http://www.trulia.com/homes/Connecticut/Torrington...

@Account Closed   how much rehab does the property need?  What about closing costs and costs for insurance and utilities until you find tenants?

Hi there,

Not to be a jerk, but I'm curious as to why you don't have your financing plan before picking up the property?  Was it just a great deal that you had to act quickly?  

If you have good credit, you could probably get a line of credit open for 25-35k.  I always get offers for those and they are typically at about a 7% interest rate which would be very competitive compared to hard money lenders.

Hi @Dawn Anastasi  ! The property itself is in very good condition. I may just need some new locks, and paint. The people who owned it before me actually rehabbed the entire property, new electrical and plumbing. I have some cash available to pay for insurance and utilities. I believe there is a person occupying the first floor already, I am going to speak with him tomorrow to see if he wants to stay. 

I actually have 2 tenants for the second and third floor ready to go, so at this point, I just need to come up with some  cash to make myself have a buffer zone and feel comfortable purchasing the property. It was appraised (drive by) at $60,000. The paperwork I received said that it was last appraised at $80,000. 

What about peer-to-peer loans if you just need a little bit of money?

Originally posted by @Jonathan Lee :

Hi there,

Not to be a jerk, but I'm curious as to why you don't have your financing plan before picking up the property?  Was it just a great deal that you had to act quickly?  

If you have good credit, you could probably get a line of credit open for 25-35k.  I always get offers for those and they are typically at about a 7% interest rate which would be very competitive compared to hard money lenders.

 It kind of just fell to me, honestly. I didn't think I was even going to get it, and the court (it was in foreclosure) approved it and now I'm scrambling to pick up the pieces. My credit isn't all that great right now, to be honest. I have a few co-signers, but no luck with the lender I've worked with. 

Originally posted by @Dawn Anastasi :

What about peer-to-peer loans if you just need a little bit of money?

 I do have one friend in mind who may lend me some, but not all of what I'm looking for. I figure about $25,000 is a good amount to borrow, JUST in case there is some unknown defect with the property that comes up. I think he may lend me $10,000 of that. 

Originally posted by @Account Closed :
Originally posted by @Dawn Anastasi:

What about peer-to-peer loans if you just need a little bit of money?

 I do have one friend in mind who may lend me some, but not all of what I'm looking for. I figure about $25,000 is a good amount to borrow, JUST in case there is some unknown defect with the property that comes up. I think he may lend me $10,000 of that. 

 I'm talking about online sites like Lending Club and Prosper.

Originally posted by @Dawn Anastasi :
Originally posted by @Tom Provitz:
Originally posted by @Dawn Anastasi:

What about peer-to-peer loans if you just need a little bit of money?

 I do have one friend in mind who may lend me some, but not all of what I'm looking for. I figure about $25,000 is a good amount to borrow, JUST in case there is some unknown defect with the property that comes up. I think he may lend me $10,000 of that. 

 I'm talking about online sites like Lending Club and Prosper.

 Oh. Thank you! I had no idea these guys exist. I'll try them now. Thank you Dawn!

Tried it with both mine and the wife's numbers, and nada. Ah well. I tried looking into private lenders as well, but to no avail.

Try out mortgage brokers, I find those to be easier to qualify for than a banks. 

@Account Closed   There is definitely something out there for you. Maybe you have to pay more points or a higher rate, but if you can secure the loan with the home, there are going to be opportunities. If the peer-to-peer is not an option, I would concentrate on hard money for now. I'd be very surprised if you couldn't find a lender who would work with you in some capacity if they are secured.

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