All Forum Posts by: David Garner

 I love this idea!

So, this (the hard money) sounds like a scam from any angle.

Never pay upfront fees.

Always do your basic DD Before engaging (good spot on the website).

5%? Nope... too good to be true. Trust your gut there. Well done.

In my experience, genuine lenders don't come looking for you... you go to them.

There are about 1,000 genuine HM lenders nationwide, and they're not hiding. If you want a local HML, start searching online, and ask local Realtors, title companies, and other folk that are involved in the RE purchase and closing process.

If you're looking to also add private money to your toolbox, get involved in the local REIA. Speak to other local RE investors, make yourself known, lead with adding value for others, do what you say you're going to do, and eventually the private money finds you.

Well done on spotting what in my opinion is an obvious scam!

Keep calm... contact the lender the agent gave you contact details for. Keep on contacting other lenders, too. This is all part of the RE game. And yes, you're right... it's not passive income.

With a cool head and a plan you'll pull this off!

Unless as something drastic happens, you should be fine to access your refi. Make sure to speak to as many lenders as possible so you properly understand their seasoning requirements. 

 Will the existing lender let you take over the loans? If not, you'll need a replacement lender, amd in my experience with this kind of deal your best bet to get the deal done in the first place is Private money. That's how I buy most of my houses now, and a lot of those houses are similar in value to what you have there.

OK then... the issue you have is a blessing and a curse. That is, small loans, low property values. On the plus side, that's not a lot of money to find. On the downside, it's more difficult to finance these kinds of loans with traditional lenders (although not impossible).

You could look to a local credit union, or a commercial lender, or hard/private money.

Would your Mother consider seller-financing them to you? 

Question... do you know who the exisiting lender is?

 Sounds like a great deal on paper.

check for big capex stuff, especially roof, HVAC and/or furnace, electrics, plumbing, major construction items etc. My point is, be aware of what you're getting into. Yes, you're buying cheap, but add 3 lots of all that capex and all of a sudden the deal doesn't look so good.

Get a home inspection if you can to identify this stuff, then you can factor any major expenses into your plan.

Assumming you get that far and you know what yoy need to spend total, then you can look for funding sources to pay off the existing debt. 

So... the seller owes 37k against a value of 195k. That's good equity (on paper). 

What's your purchase price to own these?