All Forum Posts by: Miranda Holland

While 100% financing is possible, most of the time, there is fine print. If someone was offering me 100% financing at 4%, the first question I would ask them is how. Who qualifies for these terms? How is it you're able to offer 100% financing? Are there points and broker fees added to the 4% rate? I would pick it apart. 

You'll find that most of the time lenders who legitimately offer 100% financing are actually brokers/investors who want to use their privilege of 100% financing they've earned with one of their lenders to partner with borrowers on deals they're financing. That way borrower don't have to come out of pocket for down payment cost in exchange for giving broker 10% or more of the deal as well as a broker fee for financing the deal.  That's just one scenario. Another fine print is that you might qualify for 100% financing after you've done 15 or so deals with certain lenders at 80% to 90%. Another way they offer 100% financing is they have a network of secondary lenders willing to take a 2nd Lien position to cover the closing costs 

Try private lending Facebook groups. They may know something 

Technically, no you don't need a pre-approval. You can always get a proof of funds letter to make your offer. However, conventional mortgages tend to take a long time.  You don't want to get into a situation where you get your offer accepted and you run out of time looking for financing from a traditional bank.  So yes, find a bank that will pre-approve you first 

However, with private money/hard money, things are sort of reversed. As long as the deal is good, it will likely get funded regardless of imperfect credit 

Seems like private and hard money loans might work for your situation.  Most of the time, approvals are mostly based on the strength of the deal. Different lenders have different lending criteria but if you get a good deal under contract, you should be able to get it funded.  

I recommend calling title companies.  Let them know you're raising private money for investing in real estate and ask if they would hold the private money in escrow. Once you find a title company who is investor friendly and willing, your friend can send the money directly to the title company.  I think the title company will then do a closing with you to transfer the money with your friend being the lender.  They might also do a draw schedule for rehab.

@Saurabh Kukreja

yeah you gotta remember, renters are checking out several properties when they're shopping for the right one. It'll be hard to compete in any USA market without a fridge and full stove at least. I'm surprised the property manager took this on without letting you know how hard it would be to rent without basic appliances.

@Allen Collins

There are no seasoning requirements with the loans I offer. After the renovations are complete, you can refi right away. I will like to discuss this with you in more detail

@Jason Capalad

well you can probably get a HELOC on your primary residence and use those funds to upgrade your investment property. There's also the option of getting a hard money loan for rehab only. That's useful if you plan on selling the house after upgrading. If you're holding the property however, you have to determine whether or not hard money loan for upgrades are worth it in this specific situation being that you will likely be refinancing for a higher rate when renovations are done.

@Alexandra Beard

Hi Alexandra. There's very good advice in this thread. But when it comes to sourcing properties, my 2 favorite leads are from probate and code violations. It typically takes more work to get them so there's rarely competition in these areas plus the response rates are higher and sellers are more motivated to sell.

@Tim Callahan

You can save a lot of your personal cash by just using a Private lender for the whole deal. Lenders will do rehab only loans if the deal is profitable enough to give them confidence they're going to get paid. But using all of your cash reduces the strength of the deal from the lenders point of view. I would love to explain this in more detail and break down the numbers for you.