How would you finance this if....

[Sickdog]

Ok! I found what I think might be my first deal!! It's a single family REO by Bank One out of foreclosure. The back taxes have been paid and are current. The auditors estimate for the property in 2002 was 79900. The asking price is 59900. The house appears to be in good shape in a nice neighborhood. (May need exterior paint, havn't seen the inside) Similar houses have sold in the area for between 80 and 90k.
I want to call and offer 50k. My question is what would be the best way to finance the deal? Will Bank one extend a mortgage? Should I go through a HML? I really can't afford to much down and have kinda shaky credit.
Should I seek out a partner with money to burn? I know  a guy that has lots of cash and may want to invest. Problem is, he won't want his name devulged at all. What sort of financing technique can I use where I won't have to explain where the money is coming from?
Thanks everyone, I really appreciate it.
Sickdog

[tedjr]

Bank One will not finance, you can bet on that unless you are a great customer of theirs and have CD's etc there. HML's want some money into the deal at least 5% or more. I just did a $28,000 condo ad spent $500 earnest money and $300 appraisal and $760 at the closing. Not a lot but more than I had. They also escrowed only $2000 for $3500 of the repairs. I was promised 70% LTV and only got 62.5 % of the as is value. Also quoted 12% and and was charged 15%. Was told no personal liability and had to sign personally too. I am a bit fustrated with them and am looking for other financing too. With money partners you may be able to do twice as many or more deals. I too am looking for partners here in Austin. With a partnership you can hide the partner ot even use a land trust as the ultimate owner of the property. Hope this helps some. If you need more help do not hesitate to ask.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737
512-301-9171 home
512-587-6177 mobile

[Ernie]

Try talking to small independent banks in your area.  The smaller banks have more flexibility that national organizations.  Likewise, talk to the loan officer at your bank.  You are a customer of theirs already which counts a little.  Heck, even if they won't finance you, you are a customer of theirs and they will be more inclined to point you in the direction of someone that will.  Not only that but, give a call to a realtor in your area.  Realtors can get most anyone fiinanced and have the connections to help you out.  Be creative and make some calls you can often times be surprised as the infomation that is available if you ask the right questions to the right people!

Good Luck,

Ern
www.mynexthouse.us
www.jpcinvestments.com

[David Alexander]

How....

You Ask... it's in the stucure....

Once you have a contract on it...

Some Options:

Market it with Owner financing and Sell the Note...

This is the equivalent of linging up the starts... but, is a way alot investors get started... Don't make a full blown business plan out of it forever...

Flip it to another investor ....  

With a bank involved you will have to either use a trust or entity to buy the property or do a simultaneous close...

Find Private money....

Marketing to find someone to fund the deal long term or short term...

Find a partner(s)

Better to have half a deal than No deal...  don't think about someone getting half of your apple.... Concentrate on getting more apples...  

David Alexander