I currently got 2 townhouses "right next to each other" under contract, each unit @ 38K (current market value for each @ 75K). They are currently renting for $800 a month each, tenants have been there for 6yrs in one unit and 2 yrs in the other. I will be managing the units, so after all expenses PITI + water & sewer, cash flow is as follow: $259 in one unit and $245 in the other for a total of $504 of monthly cash flow between the two. I have until August 6th. I'm currently not working with any private lender and my bank is going to take longer than the august 6th deadline. currently feeling a little stock, seller will not extend the contract. Has anyone been in that situation before? any feedback.
Any private money options?
@Reggie Maggard, not yet...
It may be time to become a wholesaler.
@Chris Seveney, I'm looking to put down 20%. The conventional lender i deal with usually takes over 45 days to close. I got a credit score of over 760. I'm also considering wholesaling the deal since there is about 70K equity i will be walking into...
what is the money options here
tagged for input.
Do you have equity in other properties? If so, you could quickly get a HELOC or Business LOC for the amount needed and then get permanent financing after closing. I closed on a LOC against my rental in Northeast PA in 2 weeks.
Additionally, you can probably secure financing more quickly through small local banks who are not selling the loans out the FHA/Freddie/etc. Or possibly though local credit unions, who may offer you more favorable terms.
@Jeremy Pace thank you for the tag!
I have this happen with clients sometimes. It is always best to write contracts out 45 - 60 days and close early so this doesn't become an issue. Mortgage lending takes a little longer in the summer typically because the market becomes very busy and it can be hard to keep up. As others have mentioned your only option is private money...... Which will still be tough on short notice or finding a way to pay cash and doing a cash out refinance, after closing. Do you have a retirement fund you can borrow from and pay back? You can cash out right after you close and borrow up to purchase price plus closing costs if the appraised value is there prior to 6 months. You can also refinance private money right away but can't cash out until after 6 months. Inbox me any time with questions.
Nothing against you, and you may not have had any other option....... But let this be a lesson to others to make sure you give yourself time with a contract and write the closing out 45-60 days and try to close early!
Thanks everyone! looks like I found a solution to making the deal go through. I'll keep you posted once we closed...