All Forum Posts by: Kathryn Freeman

Honestly, you can't afford the house. 10% of the value isn't even good enough for the downpayment and you still have other costs like origination, title, insurance and of course loan payments. They may ask to see 9 loan payments in reserve. Even a private lender will not lend you 90% of a 30 year loan program.

Thanks Mike! Yeah you may be right. I’m just so bummed to let this one go! I did find out their loan is assumable so I’m trying to explore that option after all now.

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Quote from @John Veltkamp:

The first rule of hard money loans is to never take out a hard money loan without having a way out of the hard money loan. Get an end loan setup, before getting a hard money loan. Hard Money loans are good for "quick money". Some hard money lenders will provide end loans as well.

Thanks John! You're absolutely right, maybe hard money loan is not the option for me. I actually found out it's FHA and assumable so I'm thinking we can go that route. Do you have experience with this? Also, as an agent, do you have a lot of experience in negotiating deals waiving commission, fees, and offering close to their net to make a deal work? I'm working on my best pitches to make these deals.

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Hey all! I'm new to BP and so excited to buy my first house as an investment. It's actually a house in my neighborhood with a pool that I'd love to Air Bnb. We know the sellers and they're unfortunately falling on hard times and need to get rid of their house quickly. We have 10% cash we can put down, but not enough for 20% down for a DSCR loan or a conventional loan. Unfortunately, they don't have an assumable loan we could take over, they used a conventional. Would you recommend a hard money lender in this situation? Or is there another loan option I'm just not aware of yet?

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All Forum Posts by: Kathryn Freeman

Kathryn Freeman has started 1 posts and replied 3 times.

Post: What do I not know?

Post: What do I not know?

Post: What do I not know?