Good Investment for Someone??
We've found a property that we'd like to purchase and use as our primary residence. Unfortunately we can't get a loan for more than 85% and we don't have the downpayment available. We're looking to refinance in 1 or 2 years and in the meantime plan to rehab the property. Anyway, here's a description:
1999 MODULAR home with 3/3 and 1967 square feet. Includes 12.45 acres and a pool (needs work).
We want to build a barn and put up fencing, as well as repair the pool as soon as possible after moving in.
The home was foreclosed on last Jan, and so is now owned by the bank. Asking price is $124,900. Current tax value is $147,819. Last appraisal was done in 1999 and the place appraised at $173,250 at that time. I'm sure it's gone up since then.
Basically what we want to do is get a mortgage for the asking price ($124,900) plus $10,000 for rehab. That would still leave it at $38,350 BELOW the 1999 appraised value.
Is this something that is "done" out there, or does it sound better to me than it actually is? We're not looking to make money ourselves. This would be our primary residence where we want to raise our children. Any info. would be appreciated! Thanks! 
The numbers that you provided sound very nice. If I were in your position, I would visit a local hard money lender. They usually will lend up to 80% of the value of the property. The down side is the interest rate you will pay can be 15% or more. They usually ask for interest only payments and sometimes a balloon in 1 year. If your monthly income would support it, this is what you may consider.
1) Use a hard money lender to acquire the property.
2) After the title is in your name, immediately go to refinance the property with a conventional note. Some may have a seasoning time of 6 months before you can refinance, and others wont. Just keep calling lenders until you find one that will fit your situation.
3) This way you will be able to acquire the property below value. You may not get the extra money that you need to fix / clean up, but you can make those additions later as your income allows!
Hope this helps and Best of Success!
BAMZ
Thanks! I hate to sound totally naive, but I am! What exactly IS a hard money lender and how do you find one? Other suggestions??
susan1013,
In my area, there is a small privately owned financing office. The good news is that most people (good or not so good credit) can qualify for the a short term loan with them, because they qualify the property, not the borrower. As I stated above, you will want to have an exit plan to refinance them out soon, because they make their money by charging a very high interest rate.
My hard money lender is listed in the yellow pages. You might try there. One key point is to remember while searching the yellow pages, is that if the company name has the word (BANK) anywhere in its name, it probably is not a hard money lender. This may help you locate one faster. You might even call a couple of local realtors or mortgage brokers and ask them if they know of any hard money lenders in the area. This may be your quickest approach.
Best of Success!
BAMZ