Funding Can Make or Break a Deal
It was noted in my last post that I DO NOT want to back out of a deal once it is under contract. A source of funding is needed on my part to make sure I will never have to do that.
This is what I’ve been working on the past few days. And as you would expect, it’s getting pretty hard for someone with not so good credit and little cash reserves to secure hard money or conventional funding. From what I have found so far, many banks are not doing investor loans (or loans period) unless you are already a member of said bank or have a credit score of at least 650.
I did however locate the main hard money guys in town last week. I spoke with one of them and basically this is how they work: You must be pre-qualified with one of their conventional lenders with a 15+ year long term mortgage in order to use their hard money lenders. This is done to better protect the hard money guys and show that if someone gets stuck with a property and decides to hold long term, the hard money guys will be cashed out. Completely understandable. They also offer lines of credit, but again, you must have the long term pre-qualification already there just in case.
So, that’s where I’m at right now. Gathering all the docs needed and getting them over to my contact. Hopefully that should be all together, sent over and I find something out with in the next week or two.
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