All Forum Posts by: Stephen Phillips

hi,

Great idea, except unfortunately the property will not presently appraise for more than 35 to $40k so only a 5k deposit will not satisfy them.  Otherwise I'd gladly finance $30k.  I've already talked about bumping the price up slightly and in different ways to try and fit the property into the lenders guidelines.  And $30k in high-interest hard money is starting to push the affordability factor.  (No conventional lender will do less than $50k in financing in California, so I'm looking at hard money only).

But thank you for the reply. 

Hi,

I'm looking for a lender or TD note buyer for a small $20k first position on a standard 2 bedroom 1 bath house with detached garage. Unfortunately all lenders, both conventional and hard money that I've found and spoke with, will not lend less than $30k.

Can you please help?

The only possible lender listed at this link, https://www.biggerpockets.com/hardmoneylenders/california will not lend on a house with a $35k purchase price.

Here's all the details, if you might know anyone who can help.

House purchase price: $35k.

Down payment: $15k.

Loan needed: $20k.

Two possible offers:

offer #-1- $20k down with seller-carry-back of $15k fully amortized over 2 years at 7% interest. (this is the only seller-carry-back terms the seller will agree to)

Cons: leaves me with no reserve and a payment of over $700 per month.

preferred offer #-2- $15k down with first TD note of $20k fully amortized over 7 years at an interest rate we agree to.

Hybrid offer #-3- close on first offer then immediately close on 2nd offer scenario so as to immediately pay seller off.

Anyone open to putting a small $20k note into their retirement portfolio?

Please help...

House and area details:

Financially the housing in the area has already hit bottom and has begun to rise slowly. The highway has been widened and a large track of land less than a mile away has been leveled in preparation for construction of a major new hospital complex, which will put a strain on housing in this now financially depressed but beautiful area within the city limits of Alturas, California. Therefore many houses in the neighborhood now have asking prices in excess of $100k, but successful sales are still only in the $45k to 75k price range.

The house is a small two bedroom, one bath approx 750 sq ft house with detached garage and two adjoining house lots behind it are included. This is a standard, stick-built house, not a mobile home or pre-fab house or trailer or anything else uncommon. It conforms in style and type and size and age to all the other houses in the neighborhood. I've been inside it as I know the renters and it mostly just needs minor cosmetic work (paint, cleaning, etc). In as-is condition today I would estimate the completed selling price to be between $40k to $45k for just the house. But in anticipation of the new hospital, most house in the neighborhood now have asking prices in excess of $100k, but not yet selling for those prices. And for this house ReMax has an estimated price of $90k but Truila has an estimated price of only $40k, so prices are all over the board right now as the neighborhood transitions.

The house is presently rented and I can either leave the renters in-place or I can move into the house - just depends on financing requirements. I only need the use of the detached garage - accessable from the alley behind the house. This house (on 9th street) also comes with a double vacant lot behind it (fronting on 10th street) which I may eventually like to build one or two small houses on to rent, but that is in the future. First, I must secure ownership of the house. The house is located in an older subdivision within city limits so all utility hookups for the vacant lots are also readily available.

Regardless, I don't intend to sell or flip this house if and when I can find any financing for it's purchase. All homes in this subdivision are about the same size and have about the same square footage of usually under 1000 sq ft on lots I believe about 75 by 150 ft. And a few, like this one, include another lot. This is the only house in that neighborhood I know that includes two vacant lots in addition to the house.

What else do you need to know to be able help me? Of course the exact address will be provided to anyone seriously able to provide $20k financing.

Thank you.

Josh, that sounds like a great idea, thank you!

They sounded hopeful when I spoke with them on Friday.  I expect to find out this week if it will work out with them.  At least its another avenue to pursue.  

Thanks again.

So sad . . . 

I guess no one has any other suggestions?

Please help . . . I don't know where to turn and having studied the area closely for the past 6 months, this is the first house I've come across I feel I can afford.  Selling price: $35k, my down:$10k to $15k with $5k remaining for repairs; financing wanted: $20 to $25k first position mortgage; my financial liabilities: none; my credit liabilities: zero credit rating on all three credit reporting agencies.

Please help . . . 

And its a standard house, not a mobile home or pre-fab house or anything else uncommon.  It conforms in style and type and size to all the other houses in the neighborhood.

Hi,

I tried OneMain Financial.  Unfortunately they will not do loans over $7k, or very rarely $10k with exceptional credit, and they want a decent credit score.  $7k is not enough, and, with a credit score of zero, its a no-go with them, but thank you!

The seller is very emotionally upset with the renters in this and the other houses she inherited, probably because she has no interest or desire or knowledge on how to be a landlord. So now she just wants to get rid of all her real estate and wants nothing to do with any of her inherited houses, including carry back a note on one.  The realtor did say if I don't buy it, he will list it for more than $35k, but he did not say how much more.

It is my intention to live in this house as my primary and only residence for the rest of my life. This house (on 9th street) also comes with a double vacant lot behind it (fronting on 10th street) which I may eventually like to build one or two small houses on to rent, but that is in the future. First, I must secure ownership of the house. The house is located in an older subdivision within city limits so all utility hookups for the vacant lots are also readily available.

Financially the housing in the area has already hit bottom and has begun to rise slowly. The highway has been widened and a large track of land a few blocks over has been leveled in preparation for construction of a major new hospital, which will put a strain on housing in this now depressed but beautiful area. Many houses in the neighborhood now have asking prices in excess of $100k, but successful sales are still only in the $45k to 75k price range.

If you can think of anyone who would like to put a small first position TD in their retirement portfolio, I would appreciate you passing along this information. And I give you my word - until the note is paid off, I will never be late in making my payment every month.

The house is a small two bedroom, one bath house with detached garage and two adjoining house lots behind it are included.  I've been in it as I know the renters and it mostly just needs cosmetic work (paint, cleaning, etc).  In as-is condition today I would estimate the completed selling price to be between $40k to $45k for just the house.  But in anticipation of the new hospital, most house in the neighborhood now have asking prices in excess of $100k, but not yet selling for those prices.  And for this house ReMax has an estimated price of $90k but Truila has an estimated price of only $40k, so prices are all over the board right now as the neighborhood transitions.   

Regardless, I don't intend to sell my home if and when I can find any financing for it's purchase.  All homes in this subdivision are about the same size and have about the same square footage of usually under 1000 sq ft on lots I believe about 75 by 150 ft.  And a few, like this one, include another lot.  This is the only one I know that includes two vacant lots in addition to the house.

Is there anything else someone may need to know to help me find financing?

Thanks.

I just checked Prosper.com.  I must have a credit score of at least 640 to use their service.  Unfortunately my credit score is zero with all three credit companies.  I've always paid everything in cash my entire life, or did without.  

But that was a great suggestion.  Any other sites like that anyone can recommend?

Where could I find people like James suggested who would be interested in such an agreement?  Of course I tried the usual friends/relatives and acquaintances but I don't know anyone who knows anyone with an extra $15k to $25k they are looking to invest. 

Thanks.

a title company will create a note - interesting - I thought the realtor did that.  I will check into that too tomorrow. Thanks.