Realtor · Silver Spring, MD · Member since 2016 · 20 posts · 4 votes
Hi all Again!
Theres a great deal in my area listed for 190k as a short sale and comps for traditional sales are 300-350K. We saw the house, the main floor is in great condition. But in the disclosures, it says the house "likely has mold and water" so if anything repairs cannot be higher than 10K.
So my question here is: what are the different creative financing methods i could possibly apply in this scenario? Aside from purchasing it with a hard money lender since it most likely it won't qualify for a regular bank loan due to the loan...
Any suggestions you may have are soon greatly appreciated! Thanks you guys!
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
10y
Lily, creative financing in a shortsale is likely out since banks usually sell a shortsale to a cash buyer or those who can qualify for hard money (specially since you have this mold issue).
One way to finance this with as little money down as possible is as follows:
Step 1: qualify for hard money
Step 2: for the downpayment, you can partner up with another investor who can put up the downpayment OR, you can explore P2P (Peer to Peer) lenders like LendingClub to help fund your downpayment. If you have good credit, P2P might work for you.
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
10y
Lily, creative financing in a shortsale is likely out since banks usually sell a shortsale to a cash buyer or those who can qualify for hard money (specially since you have this mold issue).
One way to finance this with as little money down as possible is as follows:
Step 1: qualify for hard money
Step 2: for the downpayment, you can partner up with another investor who can put up the downpayment OR, you can explore P2P (Peer to Peer) lenders like LendingClub to help fund your downpayment. If you have good credit, P2P might work for you.
Realtor · Silver Spring, MD · Member since 2016 · 20 posts · 4 votes
10y
Wendell De Guzman hi Wendell! Actually were walking away from this short sale, we found out it has really bad structural issues & not much room to profit. So we're still looking for our first deal!! :-)
Wendell De Guzman hi Wendell! Actually were walking away from this short sale, we found out it has really bad structural issues & not much room to profit. So we're still looking for our first deal!! :-)
Lily,
Instead of walking away, then submit a low ball offer ($50K lower). If the bank says yes, you can always wholesale the deal.