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Ryan...you last statement makes sense...thank you for the clarity.

ESTABLISHED investors will have the ability to purchase with cash or a large line a credit.

Thanks...

Webber - you are funny. The lender cares soley because they are fronting most of the money - regardless of how much it is worth and your 780 score. Oh and less not forget - they want to make sure - the person who is selling it - has AUTHORIZATION to sell it!

Webber - I guess I need to just ask this question

When a transaction like this goes down... is the final buyer's lender aware of the seller transaction the same day?

If yes...then it's cool

If no...that is why I wrote what I wrote.

Most lenders are concern about the chain of title REGARDLESS of how much you are putting down... The question above was not about a 780 borrower or how much he was putting down...They wanted a lender WHO WAS willing to do a loan like that SAME day -when the seller purchase isn't even RECORDED yet.

AND I am saying there are VERY FEW that will do that when the dang on seller purchase ain't even recorded yet...further more...the BUYER lender probably isn't even aware of the seller purchase.

Your opinion is your opinion but in this industry...Most lenders do care as to how long someone bought the property - that's why we have property seasoning issues and PRE-PAYMENT penalties...the banks don't make no money when you flip the property that fast.

HISTORY REPEATS itself...so once upon a time...we had no C/D paper loans -whether it's the bank fault for their programs or due to individuals taking advantage of the programs...we will one day have no C/D loans like before - if all of the so-call experts don't take some responsiblity in this industry.

As far as people making a good living on these type of transactions is a given - I'm fully aware of the LOVE of MONEY will cause individuals to do pretty much anything to get it!

But like I said before... if the buyer's lender is aware of the seller's transaction the same day...then we STRAIGHT!!!

We must agree to disagree...so I'll leave it like that...Peace!

burnevik

Long Beach has no seasoning issues I think and Option one...Try them!

I might be wrong - but when the investor purchase the property and then sells it to his buyer the same day...I am assuming here that the buyer is closing the same day too. If this is the case...

The lender of the buyer never saw (investors sale) in the title search...because his sell isn't even recoreded yet. (Again, I am assuming the buyer is closing the same day...from the post.

Again, based on the writing, I'm not sure what it means when they say the investors sells it to his buyer the same day. Is that a back to back closing? I hope not, and if you can't understand why I said this...then it means you don't understand the ramifications.

As far as a lender goes...their first priority is to PROTECT their funds in which they invested. Yeah they are in it to make money and loan after loan...but I see alot of lenders closing shop too because they made bad loan decisions extending credit to borrowers who really were not ready for home ownership or being an investor. The foreclosure rate is off the charts right now...at least in GA...

Have a great weekend!

Cool thanks for the clarity...

I have a question - who signs the sales contract

Seller
(As owner or As TRUST) and if I understood correctly, if the document is not record for title search purposes...explain how the chain of title will read

Seller to Trust
Trust to Buyer ????

Or

Seller to TRust
Trust to Part 2
Part 2 to 3 party???

Hi - hard money lenders evaluate the property and they only lend up to 75% usually. They usually perform their own appraisal instead of a loan officer requesting one. They don't look at your credit score really nor your abilty to repay.

If your credit is less then 500 and you really don't have the income...I will suggest you wait until you are at a point that you can qualify for at least a conventional loan for at least 75 %. Like the last person stated the rate is high and the points are ridiculous. Many loose their home because they can't truly afford the mortgage note on a hard money lender.

If you would be in a position to refinance your home within 3 month from a hard money lender - then I say you have an option.

Rest assured that if you miss a payment they are not as cooperative as a conventional lender - 25% of equity in it - and an investor mentality...lol you better suck salt to make those payments LOL.

If you are an investor and you plan on flipping it ...then HM is an option.

Sheppie - if you have answers and a plan for everything that can possible go wrong in your project and you can handle those obstacles -then I say move forward.

However, I will suggest that you start off small in your investment size.

Example: Purchase a home that you can afford to make the monthly payments in the event the home does not sell as quickly as you would like it to.

Also, don't try to get rich over night...ifyour profit is about $20 -30K...consider yourself a success story instead of trying to make $70-100K your first time around.

Things come up in a project that you sometime do not anticipate.

Also, as far as the loan goes...if you plan on flipping the home within a year...don't go for the fix rate - but I recommend an ARM - the rates are lower and buy out of any pre-payment penalities.

I'm amazed you guys talk about these types of transaction in writing LOL

This is the very reason why, lenders are getting very skeptical in their lending practices. :wink:

I have two deals that I pre-qualified and they don't have agents
Where are the CA agents at...email me or I will resort to the yellow pages soon.

1. She wants to purchase a $750,000.00 home

2. She wants to purchase a $120,000.00 home

[email protected]

WOW 3 WHAMMIES huh, things are that bad?...that's over my head dude LOL.

Ride it out is all I can say - with a part time job. LOL (just kidding)...for real though, I think renting a home is better anyday but you know your area better then I do.

Investors in the ATL - usually rehab and flip - but they are cracking the whip a bit - so that has slowed down some too. '

We just have to watch capital hill for that change in the economy JM... I didn't know people were hurting like that there... alot of people are now hurting from the refi boom - with these ARM rates that are now adjusting and they can't get into a fix rate...so the foreclosure rate is going to get worse before they get better...