More From 25 Properties How To Do Financing.
More from 25 properties how to do financing.
I have 25 single-family properties, on all of them I have a first and second mortgage, all of the properties was purchased in the last year.
Because I had so many new mortgage on my credit report my credit score went down to 600 (I do not have any late payment or whatsoever on my credit report).
I am planning to purchase more properties what would be the right approach to go about it in the mortgage market.
If your statements are true, just continue doing what you have been doing.
[addsig]
Are you buying the houses in your personal name or under a Business name. Seems to me that would make the difference. Of course I am new and would like to have additional comments because I will begin purchasing soon.
This would take some time, but may be worth it in the long run:
Establish a business as a separate entity that then acquires the properties from you as an individual. Ultimately, the object is to remove the properties from your personal credit report, and make them assets/liabilities of the business.
If you are looking to purchase more in the short term, look for a partner-investor or just hard money.
Also You could try buying more properties Subject To or Lease Option.
Simple. Do deals with owner financing. No lenders, brokers, no banks. Hell you might just get better terms if you get the right seller.
Nate-WI
Here is what my favorite lender tells me.
Credit score is not the only factor in a lending decision. Two thjings will overcome a low credit score and get you the next loan:make a larger downpayment to get the LTV down, and, have a high net worth and/or substantial liquid assets.
I know you are looking for traditional mortages, but it s ridiculous for you to say that you can not find a seller that will give you terms. I work in central FL which has been one of the hottest regions in the country. I still find sellers willing to hold mortgages and allow subject to purchases. Out of the 15 or so houses that I have recently purchased, I have not gotten a traditional mortgage on one of them. Only four of those were rental properties that I have kept, and they all had either a mortgage wrap, mortgage assumption, or seller held financing.
Brenda
Owner financing deals are always available to be found in every state. i search online and I never have a shortage finding sellers willing to carry all .
If you need some more properties this way, I have a couple of contacts in the northern states that are looking to sell seller financing.
No bank check needed.
Colin
You need to move to private money. If you have enough equity, get a large private investor to put a new mortgage on each property, or just do a blanket mortgage. Then on your next deal, add the property to the blanket and have the investor fund at closing.
How to find them: look in the Official Records for mortgages sorted by name of party. You are looking for someone who is not an institution, but who holds lots of mortgages. Also ask around at the rei meetings, who the big players are.
Hi , I am a mortgage broker . You can still get mortgages but not at 100% and not the best rates. You can do stated down to 500 at 85%. One idea may be to do a blanket loan. Rolll them all into one.
Also, doing loans in a LLC name still puts it on your credit report and limits you to 80% LTV
Quote:
On 2005-12-20 21:44, Marnie1065 wrote:
Also, doing loans in a LLC name still puts it on your credit report and limits you to 80% LTV
Is this done with a private local banks, what should I do in order to find out more information.
Use credit investors. Other peoples credit score to get you the loan, then they add your name to the house. This is how I got my last property since my score was also getting lower do to my debt to limit ratio. Only down side is you have to take on a 50/50 partnership this way. its not really a downside for me, just more safe way to invest.
There are investor program that can help you with financing without credit check, just have 10 -20 equity in your homes.
Hi! I am a mortgage broker with 5 years behind me. I am amused with some of the financing "ideas". There are no absolutes in our business.
If you want to continue to buy without any partners, you will need to deal with portfolio lenders only. Anyone who is selling there loans off to either Fannie Mae or Freddie Mac will have a cap at 4 loans in their name and 10 total.
There are portfolio lenders that will lend to your LLC or Corporation as long as you Or a partner are guarenteeing the loan personally. Of these lenders, there are a few that will NOT report to credit bureaus. The thinking here is that the LLC is actually making the payments and not the guarantor. They will only report if you default.
However, having 1st and 2nds on all of your properties tells me that you are putting little or no money down. These lenders will only lend at 80% max. However you will be able to go SISA. I might suggest a line of credit for your down payment money and 80% financing with a portfolio lender that will not report. If you, choose not to go that route, you may want to take on a partner and have him/her do as I suggested. (You will have to make them a member of your LLC.) You will have to get your score up to over 620 midscore in order to make this work on your own.
Out of curiosity can you give you tell us what your FICO was before the 25 loans within the last year or at least give us range of what it was? I am attempting to gain an idea of how much it dropped since I was planning on getting 10 loans this year.
your credit went down because everytime a lender gives you a loan, they put an inquiry on your report. With over 25 inquiries in a short period of time, now wonder your score went down. Usually you only want your credit score pulled 3 tmes within a 3 month period. You allowed your credit to be pulled at least 6 times in that 3 month period which is a no no.
see if you can have some of those inquiries removed from your credit.