Need Quick Financing for Deal in Portland, Oregon

[Carolina Selva]

Posting in another forum - hope that's not taboo!!! (Posted in the Creative Financing forum first).

Hoping one of you can help or refer me to someone! Finally found a deal we want to move on, and shockingly - it's in our home market of Portland, OR. Want to make an offer ASAP as we found out there are multiple offers already, but this is a gem - and they'll be reviewing offers tonight.

It's a light cosmetic "flip," way underpriced in a prime neighborhood and my family and I would live there until the two remaining teens head to college (about 2 years) while we fix it up. We have the down payment and access to cash for the renovation - but getting a conventional mortgage would be tricky because we had to walk away from a mortgage in 2008 (surprise, surprise) and it took the bank until 2013 to finalize the paperwork - hence, our waiting period is until 2020.

But the deal is NOW! My credit score is 685, our W-2 and small business income is great, we don't qualify for FHA because we currently have one (home under an FHA mortgage) that we intend to keep as a rental. My parents are willing to put their credit on the line as co-signers - they have good credit but not great income.

We'd like to make an offer tonight and get a pre-approval letter in by tomorrow. Does anyone want to consider getting in on this deal? Anyone interested and available to talk about it ASAP to see if we can make it happen?

We could/would consider refinancing as soon as we qualify for conventional financing (Jan 2020) if that helps.

Okay - hope to hear from you!!! This little family has been hawking opportunities for about a year and a half waiting for the right one. Hope you can be a part of our story.

[Alex Bekeza]

@Shane Short and @Charles Flaxel.  Out of curiosity I took a peak at Rain City Capital's website and they advertise 11-12% interest rate range right out the gate to, in their own words, "match industry trends".   If its your first flip ever then that's not too shabby.  If you've done at least 1 or 2 flips in the last two years and have a decent FICO (700 +) then anything over 10% is too high in this market.  If you've done 10 + then its a non starter, you could be in the 8-9% range or even lower.  The West Coast is too competitive for that. There are way too many hard money lenders in California, Oregon, and Washington willing to lend up and down the Pacific Coast. 

Their marketing is really cool for new flippers with their hard money glossary, link to foreclosures and what not but I'm thinking that's who they must do pretty much all of their business with. 

On the flip side, pun intended,  I really dig the fact that they donate $100 from every loan!  Shout out to rain capital for that!  I haven't seen any other lender doing that type of thing and I also have no reason to believe that they don't give good customer service.  Just my 2 cents on their outer layer.   As a broker, I can't see any reason to register and originate with them. 

@Carolina Selva This response was just based on me coming across this HM lender, not your situation.  No Hard Money Lenders will lend on an owner occupied home.  Your situation is not super straight forward (because you want to live there) and you should be reaching out to a local mortgage broker in Portland (you need to be licensed state by state for owner occ.) who will understand all of the Non QM owner occupied options inside and out and be able to give accurate rates/time frame expectations.  This is also one of those scenarios where I would say that you should also see if seller financing is something the seller would consider until you can refinance.  

Rain City Capital also tells you on their website what they would do if you ended up taking occupancy while using their loan and their policy is probably very similar to all other HMLs:

"The reason we’re able to finance higher-risk deals and fund so quickly is because these properties are only for “commercial-purpose”or “business-use” (not occupied by the owner), so there’s a lot less red tape. Owner occupancy is considered an event of default, which would accrue 24% interest and lead to foreclosure. If you decide you’d like to make the property your primary residence, you would need to refinance."