Financing Investment Property
Hi:
I am in NY and am interested in purchasing a duplex either in PA, OH or even GA. I am getting the MAJOR run around for a mortgage. I called Countrywide Spectrum Lending, who said that my credit was ok at 628 middle score, but that with the income that I have on paper $15k/yr, and outoing expenses of $280/month they could not underwrite a loan for me. The guy suggested I call Countrywide directly, which I did..he could see my app. but was unable to access it. He was "happy" to redo, but that meant pulling my credit again..so I tried to call Spectrum back so they could unlock the app..noone would take the call.
I then called Washington Mutual..and was told that they do not give preapprovals on the phone for investment properties..I am at my wits end...
Does anyone have any idea how to finance an investment property? Esp in another state?
Thank you so much guys!!
Call a mortgage broker to help you. Use can use one locally or one that does mortgages in the state you want to buy the property
Lori
[addsig]
I actually contacted a lender from this site, very nice folks..but he was saying that for my income to not come into play, I would need a middle score of 680..thats going to take some time I imagine for a 628 middle.
I really need to figure out creative financing strategies for this to work,,any suggestions?
How did everything turn out?
Hi:
Thanks for checking in..I now have my middle score up to about
675, so I am well on the way to getting things done. I think that my plans will still be on hold b/c I am in Nursing school now and will not graduate for another 7 mnths.
I have no downpayment money at present and am not sure if there is a way to go around that and find a small starter property out of NYS.
I am still trying to figure that out..
sellisny
Hi,
Investing in income generating properties is a business and should be treated as such. I realize creative financing sells alot of books and gets attention but the best way is to save the money for a decent down payment (Hopefully combined with a good credit score) which will make you cash flow POSITIVE every month.
Please email me to talk with **Please See My Profile**
You can improve a note by increasing the yield to the investor who buys it.
You could also create a note (and record it) in replacement of this note that has terms more agreeable to an investor, i.e. higher interest rate. What are the current details on this third position, and also the values on the 1st and 2nd position?
firstBalance: 242400.00
secondBalance: 60600.00
facevalue of this note: 19,000.00
salesprice: 315,000.00
Owner states value is at $375,000.00, but I do not know for sure how this was determined, so being safe going by the sales price.
I have already told him this is going to be a difficult sell to take anywhere. If you know anyone who may be interested (with more info of course) please let me know.
If not, it is always good to keep learning for future scenarios.
Thank you!
You could have someone but the second and third but it will be hard finding someone to buy a third position loan. What are the interest rates of the loans and how is the credit of the owner? Maybe the owner would want to refinance and pay you off. You can tell them that they could get cash out or maybe lower their rates/payments by refinancing.
Sure. But they will qualify you. Most private investor will have the same criteria as a bank.
They just might not consider the length of employment like a bank.
apex, you are right. The poster must create the note or see what the type of structuring the note buyer wants and if the poster agrees to the terms. The note buyer will purchase the note.
Thanks.