Creative investing

Creative investing

Real Estate Investor · Beverly Hills, CA · Member since 2015 · 9 posts · 2 votes

Hi BPers,

Here's two situations...what are some options

Situation A:

I have a "lead" who has a 100k cash for an EMD to buy a 500|+k house now! Banks wont touch her, for the balance...she called the realtor and all he wants is to go by the books...she's a very motivated BUYER...I suggested Homeowner finance for her... I also said I would help her find PM to finance the rest (and maybe she can even put down less then 100k!...is there anyway I can profit from putting a PM and her together (perhaps a finders fee)?

Situation B:

KInda of similar...I have friend who is a (newbie agent) she came across a Motivated seller who is currently renting their house. The renters want to buy the house. The renters are her new clients...again banks wont touch these renters...Again I suggested Homeowners Carry, perhaps PM, and lease option for the renters....am I on the right track her for her?  And as an investor is there anything I can do in this situation other than buying the prop out right and re-leasing it to the current tenants? PS apparently this house needs some renovating on the roof...waiting for some renovation #s from my friend.

Thanks...

J

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  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    11y

    @Jason Shaffer

    Getting an option to purchase, recording the option, then charging an "option release fee" is a good way to earn income, it may pay to be licensed in some states, but act as a principal in the transaction.

    @Josh Caldwell

  • Youngstown, OH · Member since 2015 · 4 posts · 1 vote
    11y

    @Jason Shaffer Regarding Situation A, perhaps it's best to ask, why won't the banks lend her $400k+? Yes, I know the banks are super conservative these days, but, I see only danger with this one!  

    Who is selling their FMV $800k home for just $500k? - Because, if it's NOT worth lots more than half a million, then it is not a "deal" at $500k, and therefore ANY lender would likely be wise to steer away from shelling out 80% of the asking price to a probable shopaholic.

    [I believe BiggerPockets is about helping people find/pay for INVESTMENT properties, not assisting/encouraging funding of properties that Investors/Lenders balk at for good reason]!

    Apologies if my comments about your "lead" are unjustified, but, are they? (I will refrain from commenting on Situation B).  

    On the other hand, if YOU can get a Property under Contract for a lot less than your "motivated-and-Lender-approved Buyer" will pay - then, good for you! 

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