Financing For My First Deal...

[Lou Croce]

Hello all,

I'm getting ready to close on a duplex pretty soon but I have to say, It's pretty gut wrenching!

Its a duplex out of state where my parents live, so I visit alot (about a 4 and a half hour drive). Cash flow is very good for a duplex. All the banks I've talked to said I could NOT title under my LLC, so I was told to quit claim it after I buy it and pay transfer tax. thats part 1 of the headache...

1 Bank fell through (Quicken, Dont ever use them btw) for reasons I'm still unclear about. My agent, who's also an old friend of mine and an investor as well, referred me to Wells Fargo. I had to renew my contract to extend the closing. Part 2 of the headache....

The only way Wells Fargo could do it was to say the Duplex was a "second home" and put 10% down plus closing costs (3% seller concessions). Today I got a phone call from Wells Fargo saying that I have to write a letter stating why it is a second home. I told her that is where I'll stay when I visit my parents and I'll rent out the 2nd unit. She typed it up and said I would have to sign it at closing.... Part 3

Does all of this make sense? Why cant they just finance it as an investment property with 10% down? Is it because of the current mortgage meltdown thats going on? Is all of this going to come back to haunt me?

Any input would be much appreciated!