All Forum Posts by: John A.

I'm looking to borrow the absolute minimum from prosper.com which I think is $2,000. My credit is not the best an I need a small loan that I can pay back over a 3-year span. Has anyone borrowed or used this website? Thanks

I understand what your saying and it make sense. If you were in my shoes (not saying you are) what would you do? How do I find a good lender?

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I'm looking to finance my first deal with FHA. I understand that I need 3.5% for the downpayment. Where I am having trouble is income, debt.and possibly credit. I went to college for one year and have a debt over $10K. I have no income for right now but looking at a part-time job soon. My credit score is in the high 500's because I owe college debt. The property I am looking at is very affordable and I believe now is the time to get it. Can I have my parents on the loan to make up for my income, etc? Any other advise would be greatly appreciated!

@Mark Ferguson- Yeah my realtor told me that the bids were cancelled. I usually base my bids off of what the counter from HUD is, once I get the counter I move on from there. This leads me to getting an offer accepted really quickly. If buyers begin to back out on contract deals HUD will take notice fast because that property goes back on the market and they don't like that because you agreed to purchase it.

@Mark Ferguson- They don't tell you were blacklisted, they just stop paying attention to your bids since they think you won't come through. My realtor noticed this and she told me what was up and I had to go with a different buyers name instead of the LLC.

@Rich Henry, III- HUD gives you two business days after you get your bid accepted to send in all documents, earnest fee, proof of funds, etc... What I usually did when I got a bid accepted was to place my bids on Wednesday and Thursday nights, so they can be accepted on Thursday and Friday Morning (all HUD bidding is systematic, meaning your bids will go through a machine until your bid reach the limit HUD wants then the asset managers see your bid and decide if they want to sell you the property, that is why that give you counter offers the next morning if your bid is not high enough, I called about this and heard from others as well). Be careful accepting offers and not closing on the deals, I got blacklisted because of this. I got two offers accepted and failed to find a buyer for both and HUD blacklisted my LLC because of it so now I use my full name for offers instead, not cool. What I do now is put bids in like I stated earlier Wednesday and Thursday so they can be accepted so I can the extra two days on the weekend to show my cash buyer and if the buyer doesn't want it cancel my bid before going under contract, no more stress! Been closing deals ever since! Best of luck

@Raymond B.- I'm from Waterbury

@Wayne Brooks- I used my own attorney not HUDs and let the attorney handle the closing

@Terri D.- It depends on the purchase price you have the property under contract for. If the purchase price is equal to or less than $25,000 you have to pay a $150 extension fee ($10 per day) for 15 days. $25,000.01 to $50,000 is a $225 fee ($15 per day) for 15 days. $50,000.01 and over is a $375 fee ($25 per day) for 15 days. I see that your contract is set to expire on June 27, if I were you I would call HUD ASAP when they open today and tell them that you need an extension. If you don't know the number, ask your realtor as they are licensed and should have the number on hand. If you have any other questions let me know. Best of luck!

@Terri D.- 1) Yes, you can use your buyers funds from the B to C to close the A to B. I just closed another HUD deal today and I'm going to pick up my check from the attorney tomorrow. Made a profit of $3K after closing costs, which is great and helps me build capital so I can start buying and holding. Also, its very IMPORTANT that you have an attorney that knows what he/she is going because if they mess up, your whole deal is messed up and it will make you look bad. You should start asking attorneys if they can pull off a double close.

2) If you mean how long do you have to close the deal from the day you get the house under contract till it expires, you have 30 days, anything after that you will need an extension and that will cost money. Make sure you get a deposit from the buyer before going under contract because if you go off of the buyer's word and the buyer backs out of the deal, then you WILL lose your earnest money from HUD, I lost my earnest twice because I couldn't find a buyer.

3) No it is not necessary to have the electricity/water/heat/etc on, it's the buyer responsibility to do their own due diligence. Just make sure the information your giving them is correct or else you'll be in trouble. My main cash buyer is a construction worker and all I do is show her the property and she takes over from there. I closed enough deals with her to the point where I dont have to be there all the time, all I do now is drop off the keys and pick them up when she is finished.

4) HUDs arent that hard to close, but since it's your first deal, it's natural to have a lot of questions I was the same way when I did my first one. If you did the right screening and found an investor friendly attorney who can do double closing, you got the deposit from the cash buyer before getting the property under contract, you should be alright. Another tip is that HUD will give you 48 hours to accept the bid or not, I like putting my bids in on Wednesday night so Thursday morning the offer will be accepted and I'll have till Monday to get it under contract, use the weekend to show the cash buyer the property. Best of luck!