HELP need seasoned money! NO RISK TO YOU!

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HELP need seasoned money! NO RISK TO YOU!

Jordan Sunshine
Real Estate Investor · Honolulu, HI · Member since 2016 · 73 posts · 47 votes

Hey guys,

I have never done this before to anyone as I hate asking people for favors but I am in a HUGE pickle right now and REALLY need a favor from anyone willing to help! This needs to happen ASAP! So anyone who is in Hawaii, preferably on Oahu or anyone who is out of state who can figure out a way for me to get the 80k cash in hand to you please read on!

I have the deal of a lifetime currently in escrow, I was going to go FHA and buy the property but I recently came upon 80k in cold hard cash to use as my down deposit for the mortgage. This makes me want to go Traditional Investors Mortgage with 20% down instead because now I can put renters in the house immediately and start cash flowing a whopping 1500-3000$ a month in cashflow!!! YES 1500-3000$ AFTER ALL EXPENCES! (If you are really interested in helping me I will share my numbers but none of that matters for why I'm asking for help)

The reason I'm asking for help is because I need the 80k to be seasoned and it's currently in cold hard cash. It would take too long for the money to become seasoned if I put it in the bank now and I would fall out of escrow on the deal of a lifetime! So what I am asking of anyone willing to help is to borrow a bank account of theirs who has 80k of seasoned money in it and I will give you 80k in cold hard cash in return the same day the money is withdrawn from the account (if you want to bring a lawyer and write up legal documents we can)

What needs to happen to make this work: (at least what I've figured out so far) The 80k needs to have been in your bank account for at least 60 days. (seasoned) You would need to add my name as a secondary to the account and write a statement saying I have permission to withdraw 80k, no more no less, from your bank account. I will then give you 80k in cold hard cash for your 80k of seasoned money in your bank account. (plus your fee for letting me use your account for this one time transfer) The money from your account will go directly into the down deposit of the loan and I will never actually touch the money or access your account. (I don't even need to know your bank account number or routing number but the loan officer will need to know it) The day after the money is withdrawn you can take my name off your account and we can part ways.

If anyone is willing to help or knows anyone who might be able to help, I could really use it! I cant let this deal of a lifetime fall through! This plan was given to me by my loan officer so I do believe it to be legal. If there is anything wrong with this plan please let me know but also give me a workaround so that I can make this deal happen!

Any and all feedback is greatly appreciated, positive or negative, but please don't call me a fraud or scammer because I'm not. I'm an honest investor who just needs one favor to land the deal of a lifetime and I am desperately seeking help to make it happen!

I hope someone is kind enough to help!

Jordan Sunshine

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  • James C.
    Rockledge, FL · Member since 2016 · 493 posts · 427 votes
    9y

    Jordan,

    I don't happen to have 80K kicking around, but I do have a suggestion.

    Close it FHA, season the money, then refinance. Cleaner, neater and less headaches.

    FWIW, you could buy a whole bunch of good cash flow with that 80k instead of chipping it all at one property. 

    If you are cash flowing at $1,500 to $3,000 by putting 80K down, then you should be cash flowing at $1100 to $2600, or about $400 less, with the FHA loan. Yes you are paying MIP on the FHA, however your investor rate for a conventional will be about the MIP difference between the FHA rate and the Investor conventional. You can very easily do enough of a deal with 80K to exceed the $400 cash flow difference. (80K, 30yr fixed @ 4.5%).

    Put another way, by using additional leverage on the current house, seasoning the money, and using it to buy 1 or 2 additional properties, you will cash flow more than the $400 difference in payments.

    Something to consider.

    Good Luck!

    Jim 

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  • Scott England
    Rental Property Investor · OK · Member since 2015 · 316 posts · 216 votes
    9y
    Jordan Sunshine This is straw buying and, at best, would be considered completely unethical, but probably outright mortgage fraud. Your loan officer advised this structure? None of the secondary mortgage market outlets will accept this and I Seriously doubt there's a portfolio lending institution that would either. It defeats the purpose of having a seasoned down payment guideline. I think you should find a different loan officer.
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  • Jordan Sunshine
    OP
    Real Estate Investor · Honolulu, HI · Member since 2016 · 73 posts · 47 votes
    9y

    @James C. You're forgetting one major problem with FHA, I need to live in the house for 12 months before I can start to make a profit off of it. The mortgage is approx. $2,500 a month not including expenses. This pushes expenses to about $3,000 with just me and my family living in it. For 12 months that's $36,000 a year of money I'd have to spend not to include the fact that I would be losing out on the profits I could be getting for that year. Yes, it doesn't add up to 80k but I'd rather have peace of mind because I will be deploying in spring of next year and wont be on island to find renters when the 12 months is up. I wont be back until month 18 of the FHA loan. I could hire a property manager after the 12 months but now we're treading into muddy water.

    @Scott England How is this straw buying? I'm assuming the loan under my name, I just don't have the time to season the money so I'm adding an investor to the deal to season it for me, that's called a partnership. People do it all the time in REI and in regular RE as well where families pay for their children's down deposit on the house but the child assumes the mortgage. I could get a bridge loan for 6 months until I can HELOC the house and pay off the bridge loan but why would I want to incur massive fees like that when there are easier methods to achieve the same goal?

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