It is very possible to walk away from the closing table WITH money in your hands, my father just walked out of a deal where at closing he PUT IN HIS POCKET, $28K...now some of that money will go the rehabbing, but not a lot, only about $8k....the way he did it on this deal is....he STOLE the house $39K, FMV was $85k, he took a loan out for $68,000, (80% of FMV), and put the difference in pocket, it is already rented out and bringing in monthly positive cash flow.... :-D
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it was an ederly lady who had owned it for many years, and one of her grandchildren (19yr old) resided there but began to trash the place, so she kicked him out and just wanted to get rid of it....she assumed that her grandchild had done a lot of damage to the house, and so she didn't mind how much it went for, I assume, she owned it free and clear, plus my father is a great negotiator and has the balls to ask for anything, unlike some people, and that is why they are still at the drawing board....remember, to ask because you never know what you might get...
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Getting a loan that is based upon the FMV of a house rather than its selling price, is that a normal procedure? Or is this something creatively worked out with the lender/bank? Does it work in any state?
Getting a loan based on FMV instead of selling price is something that would have to be worked out with the lender. I have yet to find one that can do it.
As far as getting into "investment" properties with 5% down. This is possible. Lenders will do loans of 95%CLTV. I think that is short for cumulative loan to value. The lender will loan maybe 80% and the seller will take back a second for 15%.
Yes you can buy a property for 5% down as long as you have decent FICO scores.
You can also buy an investment property
with 0 down if you are creative!
Best Riches,
Jeff Adam
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Along the same lines, you can buy an investment property with $0 down AND get money in your pocket at close!
Im in the process right now getting an investment property with nothing down, conventially as well...
I was reading that you can get a property with nothing down and walk away with money. How is that possible? :-? :-? :-?
nekochan,
It is very possible to walk away from the closing table WITH money in your hands, my father just walked out of a deal where at closing he PUT IN HIS POCKET, $28K...now some of that money will go the rehabbing, but not a lot, only about $8k....the way he did it on this deal is....he STOLE the house $39K, FMV was $85k, he took a loan out for $68,000, (80% of FMV), and put the difference in pocket, it is already rented out and bringing in monthly positive cash flow.... :-D
[addsig]
under what circumstances did he steal the house? was it in preforeclosure? absentee owner of a vacant run down junker?
Thanks, Dave
it was an ederly lady who had owned it for many years, and one of her grandchildren (19yr old) resided there but began to trash the place, so she kicked him out and just wanted to get rid of it....she assumed that her grandchild had done a lot of damage to the house, and so she didn't mind how much it went for, I assume, she owned it free and clear, plus my father is a great negotiator and has the balls to ask for anything, unlike some people, and that is why they are still at the drawing board....remember, to ask because you never know what you might get...
[addsig]
thanks Jeff
JasonFLAinvestor
Getting a loan that is based upon the FMV of a house rather than its selling price, is that a normal procedure? Or is this something creatively worked out with the lender/bank? Does it work in any state?
Getting a loan based on FMV instead of selling price is something that would have to be worked out with the lender. I have yet to find one that can do it.
As far as getting into "investment" properties with 5% down. This is possible. Lenders will do loans of 95%CLTV. I think that is short for cumulative loan to value. The lender will loan maybe 80% and the seller will take back a second for 15%.
-AE
What is the names of mortgage companies that offer 5% down for investment property?....I have an excellent FICO score