All Forum Posts by: Neil Aggarwal

Its not suitable for everyone, but there are situations where it is workable.

There should be companies that specialize in loans to investors.  There are probably also private money sources in your area.

I think you are going to have to talk to everyone around you and network until you find what you are looking for. It may be hard to find but nothing worthwhile is ever easy.

Have you asked the seller if they will finance it?  A motivated seller will consider it.

Every lender is different, here are the general steps we use:

1. You find a property you like and put a contract on it.  You should put in an option period so you have an out in case things do not turn out.

2. You send the contract and any other info you have (Like a seller's disclosure, report on the property condition, etc) to the lender.

3. The lender evaluates the property and gives you a quick idea of what they will lend.

4. The lender comes out to the property to confirm its condition and generate a detailed proposal for you.  The lender will normally charge you something before they come out since they have to spend time to do it.

5. Once you get the proposal from the lender and it meets your approval, you get a title company involved to close the transaction. The title company do a title search and issue a title commitment. They will also collect all the documentation and prepare a HUD which lists all the fees and expenses.

6. Once the title company has given you the HUD, go to the closing with good funds for the amount you owe on the transaction.

7. Pick up the keys once the title company clears everything!

A broker normally receives 3% for finding you a property to buy.  Considering that, 20% seems quite high.

Another thing to think about:  If you improve the property, the broker wants 20% ownership in that too.  In a normal transaction, they take their commission on the value of the property at the time of sale and have no upside for improvements you make.

I find that most people do not understand the details of the transaction and trying to convince them of it is a waste of time.

Private money is typically a little hard to find.  You need to talk to other investors in your area to see if they can point you in the right direction.

Hardmoney is typically for rehab and flip since they are short term loans.

Are you talking about rehabbing or landlording?

You should also look into private money sources in your area.  Some of them will use the property value to lend and not your credit.

I think you should write a lease for a given monthly amount.

Then, when they are ready to buy, put together a sales contract and terminate the lease.

It is two separate transactions. No part of the lease is applied to the sale or down payment.