All Forum Posts by: Azah Che

@Azah Che If I were in your shoes I wouldn't waste my time trying to track down a lender. I'd instead partner up with someone local who has access to funding or is a buyer and split the proceeds. Or simply sell the deal outright as a wholesale transaction. Is the all in cost $60K? if so, what's the ARV on the property? No good deal will go unfunded. Persist and you will WIN!!!

I would say it is not normal to a bank to say "We'll consider a short-sale" in writing. Take it as an omen from God! Kidding aside, go with the flow.

Do your numbers and figure out what you want to pay for it, then anchor your bid some amount below that, maybe 80% - 90%. Too low an opening bid and you don't look professional. Too high and you have no room to negotiate. If you can include inspections and/or contractor quotes to confirm why your offer is what it is, more power to you. There is no rule about getting quotes and inspections before you are in contract, with owner permission, of course.

If you really want your offer to have power, put the funds into escrow and give the bank the number to contact. Tell the bank in the cover letter for the offer "I have X in an escrow account with X company. I can close in 7 days." Notice you are not making an offer "subject to inspections" because you already did that and you want to so save the bank time(money).  After the bank confirms your funds are in escrow, they will know not only do you have the cash but that you are a power player who doesn't waste time in making things happen.

To up your game a notch, deliver the offer in person to the manager of the bank and shake his/her hand, look them right in the eye and use Jedi mind tricks to convince them you are the real deal. 

Good luck and report back!

Make your private lender an equity partner and put them on title with you as TIC.

Give the wholesaler a note for more than their asking fee if they can wait.

Finish this deal so we don't have to read about it anymore...

What was your plan to close this in the first place with no money?  I would wholesale the contract to a local investor ASAP.  

It's an assignment contract and as a newbie I hear all this "use other people's money, no money down, private lenders" but when you get a deal and need help now they tell you need "skin in the game" Maybe I shouldn't sign the contract anymore.

Where were you planning to get rehab funds from? Or are you doing it yourself (paying out of your own pocket) as you go along? What is your cash flow situation like? Can you afford to pay for it out of pocket as you go along? How much did you have saved up going into the deal? Did you not have much time before closing to think about how you were funding the deal? If you have a property under contract, you can get money through a private lender, but they do want you to put some into the deal so you have some "skin in the game." They often will want to hold the rehab funds for you and have you request draws as the work is completed. You said you need 12K for closing and 50K for rehab but what about the purchase price? How are you actually purchasing the property? With a mortgage?

@Azah Che, this sounds like a mortgage wrap to me. A mortgage wrap was popular years ago when buyers could not afford their mortgage. This is basically how it works: When a property has a first position lien holder ( bank or lender) and the seller of the home is under water or the property wont appraise for the current loan balance then the seller will leave (carry) the existing loan in there name instead of a payoff. The seller will then use a loan servicing company to handle the monthly payments and the buyer is added to Title. Some of these are done with the bank in the loop and some are done without the back knowing. Beware of the latter. This is a form of creative financing and can be a very effective way to acquire property from a seller that just wants out. Good luck.