All Forum Posts by: Matheno Howell-Bey

So I am having a good time flipping short sales using my option agreement and suddenly I have my first lender throw a monkey wrench in my closing because of seasoning. Okay so I thought that dodging FHA like the plague was all that I needed to get around this seasoning issue. Does anyone have a method that works to get around lender seasoning. I have a buddy that uses a land trust but I am still looking into the legalities in doing this. Can a Short Sale Flip be successful with Land Trust in most states and why?

Purchase a mortgage Calculator

PV: loan amount
i/yr: Rate
N: Term (30,15 etc.)
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PMT: calculate payment

Unsecured loans or lines are much like a Heloc (Home Equity Line Of Credit).
Both offer the same competitive rates, both offer a check writing feature,
you only pay on what is drawn upon at simple interest and terms generally run at 5 and 7 years.
The main difference of course is that a Heloc is backed by your home as collateral and an Unsecured line is only backed by a business guarantee to repay with no collateral such as a mortgage, security instrument or other equity.
What are the benefits of an Unsecured Loan?
NO UCC FILINGS to hold up your transaction and to keep you business your own

In plain language, the Uniform Commercial Code allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

No Business Plans
Most banks that offer conventional and commercial financing want to know about every detail of your business and want to know how the funds will be utilized.
Great for business that are less than 2 years old!!!

The general rule of thumb is that if you are looking for working capital you MUST be in business for at least 2-3 years. However with this program, as long as you have been in business for at least one year you could qualify for a Full Doc or NO DOC( basically stated with no verification of income and no Tax Returns.
Faster turn times in getting Funded
Conventional funding can run as long as 2-3 months to get approved (IF you get approved)
Funding an unsecured loan generally takes anywhere from 7 to 10 business days depending upon the compexity of the loan.
How Much Can I Get?

No Doc Personal $10,000 to $75,000 Full Doc to $125,000

Full Doc Business --$10,000 to 1 Million in Business for 2 yrs min

No Doc to $350,000 2 yrs in Business
What Credit Requirements are Necessary?

Minimum Fico Requirement is 680+

YES Deals are made in the purchase. This is a very inspirational post. I have to find a deal like that. :lol:

There are two approvals for FHA. Approved Eligible and Refer Eligible. If you have a Refer Eligible you now must have a 580 for a manual approval. If the client has any credit issues they must have a ton equity, downpayment and assets.

I too used to target subprime buyers but with the new guideline changes to subprime and FHA it is alot harder to qualify those buyers. I am now doing more of the Sub-2 method and using the lease option for those Subprime buyers that I used to market to.

This is also an approach that I use to locate deals. What I have found is the more consistant you are with the letter and makeing offers the better return for better deals. We usually get deals 30-35 percent lower than fair market value; tie it up and sell to a retail buyer.

The Matrix is right. FHA Refers are a headache. If the client has credit issue they better have a ton of Equity or Reserves.

The Pay Option Arm program is one of the biggest Alt A killers right now. There are sooo many borrowers that were suckered in the program for the lower payment option. I have a client that has this program and because of the market she can not refinance . On top of that she was not told that everytime she makes that 3% payment that her balance on her mortgage is increasing. She will most likely foreclosure once this loan recast itself and she has to make the total AM payment.

Hello all please contact me at anytime. I have over 6 years in the Real Estate industry and I am looking to network with other Professionals