All Forum Posts by: Greg G.

Just like the Chupacabra, I'm hoping someone can verify that the following exists:

Will a bank offer "seller/private financing" on Multi-Family REO product, like 100+ unit apartment complexes?

Are banks pressured to offer financing themselves if the property has been on their books and on the market for too long? Banks aren't in the business of owning/running Investment Real Estate projects, right?

I've heard of this scenario taking place on larger projects that require a lot of $ in repairs, with no buyers presenting themselves for up to 1.5 to 2 years. I've also heard that the bank will extend up to 100% financing for the purchase price, so capital can be used for repairs and rebranding.

Has anyone "seen" one of these deals first-hand?

Should this type of scenario exist, who would be the correct person to build a relationship with? Someone at a commericial bank? REO broker?

Gotta run... off to a snipe hunt.... :lol:

Here's a link to the thread on Vendee financiing: (Hope it works)

http://www.biggerpockets.com/forums/20/topics/34503-va-vendee-financing-good-

Mitch,

There was an updated post about Vendee Funding in the Forums today. The VA sells their foreclosures to non-vets and vets alike right now. Non-owner occuppied with 5% down, no PMI, one loan in the low 5's.

How many VA properties can you buy with 5% down Vendee Funding? VA doesn't limit the # of properties an investor finances and you don't have to be a veteran, so the skies the limit. Ok, available properites that fit BP guidelines are also a limit. : )

You could sell these with owner financing at retail (5% down) and replace the cash outlay or add to the $100k, while building a nice monthly cash flow and keeping most of the cash in reserves.

Rich,

Make #100 Liechenstein or Iceland. They have the lowest murder rates of any country, so you'll be more likely to visit #101!

See the list of countries by homicide rate here: http://en.wikipedia.org/wiki/List_of_countries_by_homicide_rate

Stay away from El Salvador, as that may be the last country you visit! :O

The mother could gift the money and let the $ season for the necessary amount of time in your friends account. That'll require 60 to 120 days of patience though!

A homeowner should probably have 5% saved up to really be able to afford the home, but that's not the question at hand.

You want to avoid the underwriter seeing the lump sum deposit in the bank activity, so they'll need to wait for 3 months if the lender needs to see the last 2 months bank statements. Wait 4 months if they require 3 months bank stmts, etc....

"Jimmy, As soon as you start talking about LLCs you're into commercial loan territory. You're going to have to give a personal guarantee to get a loan in an LLC. I don't think sticking the house into an LLC is going to help, if you're living in it. But, again, best to start talking directly to lenders. Get a list of every bank in the area, and pick up the phone and start calling. The FDIC bank directory can be useful." - quote from Jon

Jimmy, were you asking about placing the property into an LLC and borrowing against it, or putting the cash you pulled out of the home into an LLC and lending to you?

Jimmy,

Personally, I'd find someone that's succesfully investing in the arena I want to invest in, find a smoking deal and offer to partner up with them. They'll talk you out of a bad deal, show you what things you should do if it's a good deal and you'll have that experience for the rest of your life to draw from. They'll take you seriously because you have skin in the game.

Jon,

Most mortgage companies sell the loans to FNMA/FLMC. That's why they underwrite to their guidelines. Ever make a mortgage payment to Fannie Mae? No one does. Reason is, they don't service any of the loans. They pay another company, like Chase, to service the loan. They pay them very handsomely actually.

Jon corrected me, it's 10 with FNMA.

A lender that sells to FNMA will underwrite a max of 4.

Your mortgage broker can send the 1st 4 files to Wells Fargo, next 4 to Suntrust and the last 2 to Flagstar, for a total of 10, for example.

What's the wait time on a rate/term refi based on appraised value?