Sat, Jul 04, 2009
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Is There Such An Animal As NO Money Down In This Market? |
smitnlit
119 Posts
Member Since: 02/27/2008
Plaistow, NH
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Posted: 11:56 on 12-05-2008
We are closing our first deal today so our down payment money which came from an equity line is now tied up. We've had our eye on another property going up for auction next week. We've been in the property and it's great. I know what the bank wants for it and I know we could easily sell it and make between $40,000 and $80,000 with very little work.
Is there any bank I could approach with this deal? We would plan on holding it for a year and then selling.
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finniganps
2122 Posts
Member Since: 07/25/2005
Walnut Creek, CA
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Posted: 13:31 on 12-05-2008
I think you'd need to find an investor partner to split the profits with. Non-owner occupied financing through conventional means seems to have dried up. I'd also like to hear from other folks on what they are seeing in this market.
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cjmazur
4284 Posts
Member Since: 07/23/2003
Cupertino, CA
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Posted: 14:18 on 12-05-2008
I did see some foreclosure prevention or note purchase financing, but it seemed to be VERY expensive. like 5-pts and 15%.
Which was too expensive for my taste.
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smitnlit
119 Posts
Member Since: 02/27/2008
Plaistow, NH
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Posted: 18:07 on 12-05-2008
Yep. That just about sums up the hard money loan we just closed on. I agree .. very expensive.
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finniganps
2122 Posts
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Walnut Creek, CA
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Posted: 21:17 on 12-05-2008
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On 2008-12-05 14:18, cjmazur wrote:
I did see some foreclosure prevention or note purchase financing, but it seemed to be VERY expensive. like 5-pts and 15%.
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To me that's NOT "NO money down" when you're paying 5 pts.
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NewKidInTown3
2079 Posts
Member Since: 09/01/2005
Frederick, MD
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Posted: 13:28 on 12-06-2008
Quote:
| On 2008-12-05 11:56, smitnlit wrote:
We are closing our first deal today so our down payment money which came from an equity line is now tied up. |
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You purchased with 100% financing. congratulations on no money down deal.
Why can't you use your home equity credit line to do it again? Is there enough available credit left on your home equity line?
Maybe you have family who would make you a private loan for the downpayment money you would need.
Take on a 50.50 partner. Use the partner's money to finance whatever portion of the purchase price you need, then split the profits 50/50.
.
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loon
1167 Posts
Member Since: 03/27/2003
Duluth, MN
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Posted: 16:24 on 12-06-2008
Too late for this deal, but for future ones, as soon as you hear or learn of the (I assume Sheriff's) auction, try to contact the homeowner, get their authorization to talk to and possibly short it from the bank before others get a chance to consider it. You might even be able to buy it Sub To for nothing down, just take over payments if they make sense and there aren't too many payments to catch up to bring their loan current..
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