All Forum Posts by: Nrbq Nkotb

One of the local brokers said "most banks aren't lending on mortgages less than 50K these days",

and LENDINGTREE wont even accept an application for <100K mortgages!!!

Where does someone go to get less than 100K or even less than 50K to buy a house? !?!

There are a half dozen near 2% Rule deals around my town just waiting to be scooped up. The only problem is they are well under 100K. Some are like 41K ! !! !

Do i just need to find multiple unsecured credit lines?
This really sucks if i am forced to get a bunch of 8-9% loans.

I would love 5.75% !

But then again,
at such a low $ amount, the closing costs might throw off the ratios.

I have to run the numbers and see the diffences (cash on cash return, particularly) ...

However, the BIGGEST problem i see with NOT getting a mortgage, is the repayment terms.

8% at 5 or 7 years is going to KILL my initial roi.
I will be paying out like 5-700 a month, and these places are likely to be pulling in only 560-800K a month.

:( :( :(

AAAAAAAAAAARRRGGGHHHHHhhhhhh!

not sure what is going on, unless my internet hicupped yesterday.
swear i posted a thread with this title already.

Anyhow.
Since noone is answering my 2 part question, let me ask this more directly:

Does anyone here no anything about "secured lines of credit" ?

I was hoping to learn if you can secure a line of credit with upfront cash, or if the "securing asset" must necesarily be an annuitized income stream?

Will any "conventional" lenders give out a secured line of credit to an individual, with the explicit intention of using that credit to use as down payment on a real estate transaction?

I have two avenues of thought here:

1. can i secure a conventional mortgage for 80% with the 20% being in the form of cash paid from secured line of credit?

2. I understand from another thread that if the prospective property is less than 100K in value, that traditional lenders wont even lend. That is NEWS to me! What do people on the low end of the housing spectrum do then? There are tons of houses out there under 100K in most areas of the country.

So i guess question 2 is, could i get a secured line of credit -- say a 50 to 100K line of credit, based on 10K put down as securing collateral -- and use it to purchase outright a 30K piece of property ... assuming one can not get a mortgage for 30k.

Also, that would probably avoid lots of nasty loan origination fees that would through the cash on cash return out of wack for such a small loan, anyhow.

Is this doable?

Can anyone answer my fundamental questions about secured lines of credits, and their availability to someone with not much income (like less than 30K annualy) but with a credit score of 780+ and abou 15K in stocks in the bank? and to get that line of credit as a person (not a business) with the intention of using it to buy realty?

Anyone?

Thank you!

Hey all.
I'm new to this site.
Trying to get over 10 posts to allow all those special privelages.

HERE IS A QUESTION:

I have been browsing realtor DOT com (don't have ten posts, doh) and looking at duplexs in my local market ...

I see quite a few (like 2 or 3 pages) of them in the, how should i say, lesser sections of town below the $150,000 level (my current looking range) ... and they will be listed with the "unit 1 rents for: $X" , "unit 2 is renting for $X" ...

in todays market (or in general) is it really this common for people to be selling what appear on the surface to be GREAT deals WITH tenants?

I know i need to call and verify, but then i wouldn't have a post, and i couldn't get past 10 posts.

So.
I keep seeing these places,
and they would be, downpayment depending, about $450 to $580 a month in mortgage payments, but the units claim to be renting for about $300 to $450 a piece.

That means a lot of them claim to be pulling in 200% of mortgage payment.

I can't believe this.

How common is it these days for people to just be ditching rented units?

And,yes, i will call.
lol.

Hello all.
This is my first "real" post outside of the "I am a newbie" forum.

THE BACKGROUND:
I have very limited capital, in the form of stocks, about $15k depending on the day. Cashing out isn't an option due to the low cost basis (gifted to me, purchased in the 1940s) ...

I want to start investing in lower-income rental properties (ie. less than 150k) I have an entry level job in accounting, which i just landed, as i just moved to town. Thus, my current job history isn't so hot, nor my income. However my credit score is through the roof at greater than 800, and i have previous 2 year history in accounting. I've been told that this qualifies me for a better convenional loan. Hopefully between 60-130K.

THE QUESTION:
I know conventional lending won't go over 80% right now. I've been told if i declare it as an investment, particularly with multi-unit, i will be forced to put 20% down.

1. are ANY conventional lenders going lower than 20% for said deal?
and can you negotiate higher rate for lower down?

2. What i REALLY want to know about are SECURED LINES OF CREDIT.
Namely:

a. can you secure a line of credit (say 25-50k) with "cash" up front?
i'm actually thinking about writing a check for 5k which would realy be a margin loan off my CAP account to cover this. If not, i guess i would have to cash out, take a helluva hit and fork over all my stock in the form of cash to cover this SLC.

That is, assuming you CAN pay for a secured line of credit up front ... i'm not sure about these, seems they usualy go off of income streams from existing businesses, and seems a lot wont lend on "real estate business"

... anyone have any familiarity with this?
Can i get a secured line of credit between 25-50K with between 5-10k in cash as the collateral (can i get more? anyone?)

and CAN I USE IT IN CONJUNCTION WITH A CONVENTIONAL LOAN?
Will the mortgage company freak when they run my credit and see this outstanding line of credit?

Assuming it can be done, can i make a check for the remaining % of loan and closing with the credit line?

I desperately want to jump in, but need some additional leverage.

???
THANK YOU KINDLY!

Hey all,
just found this forum.
super excited to get some advice.
i'm looking to get in to REI with some lower-cost (<$150k) rentals.
I have limited capital and am looking for advice on leveraging.

Glad to see you all here, and eager to share,
hope to have some good success stories to share soon.
hoping over to one of the other subforums to start asking away.

THANKS FOR THIS,
whomever is the wizard behind the curtain.

;)