Creative Financing Solutions Required

[barb]

Hi Everyone!

I have an accepted offer of $140,000 on a single family home in London, ON. Great neighbourhood and location. I don`t have the cash or extra equity required for a downpayment, so using a traditional lender for financing is not an option. Once the house is renovated the value will be $200,000 to $210,000. The closing date is Feb 3rd, 2011 and I require the funds for 6 months @ which time I will refinance with a traditional lender or sell. Does anyone have any suggestions or is willing to help? Thank you.

Barb

[email protected]

 

[GaryMcGowan]

You mention the property needs to be renovated. What is your budget for this? How do you know the value of the property will be 200-210k after renos? I`m guessing you will need 165-170k. For a cash purchase + renos and holding time until you can refi.
Will the seller allow you to take over their debt for 6-10 months. Which will give you time renovate, fefi and only borrow a third of what you need to start?
Try and get the sellers to create the financing or you borrow from hard money lender at 12-18%

 

[Thomas Beyer]

QUOTE (barb @ Nov 12 2010, 06:27 PM) Hi Everyone!

I have an accepted offer of $140,000 on a single family home in London, ON. Great neighbourhood and location. I don`t have the cash or extra equity required for a downpayment, so using a traditional lender for financing is not an option. Once the house is renovated the value will be $200,000 to $210,000. The closing date is Feb 3rd, 2011 and I require the funds for 6 months @ which time I will refinance with a traditional lender or sell. Does anyone have any suggestions or is willing to help? Thank you.

Barb

[email protected]
advertise under JV section in here !

find some investors or use your own cash .. you need:
20% down = 28K plus closing costs .. say 2K .. plus reno costs .. say 40K ?

total 70K required .. then reno .. then what ?

sell ? re-finance ? rent ?

 

[lanedry77]

Hi Barb,

Another option might be to sell the purchase contract to another investor that does have the funds available.

This would be an easy and quick way to put some cash in your pocket for the next time you come across this kind of deal.


Thanks,

David.

 

[barb]

QUOTE (DavidSandbrand @ Nov 13 2010, 01:50 PM) Hi Barb,

Another option might be to sell the purchase contract to another investor that does have the funds available.

This would be an easy and quick way to put some cash in your pocket for the next time you come across this kind of deal.


Thanks,

David.


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[barb]

Thanks for your suggestions. I have a private lender who is willing to finance @ 10.5% and is willing to put a second charge on one of my other properties. I know the property will be worth $200,000-$210,000 when the renovations are completed because we do amazing work and I know the market in London extremely well. Thanks guys!!

 

[robbay]

QUOTE (barb @ Nov 13 2010, 03:51 PM) Thanks for your suggestions. I have a private lender who is willing to finance @ 10.5% and is willing to put a second charge on one of my other properties. I know the property will be worth $200,000-$210,000 when the renovations are completed because we do amazing work and I know the market in London extremely well. Thanks guys!!


You say you know the London real estate market very well? What can you tell me about multi-family properties...6+units and various locations throughout the city? I am an investor looking to get into different cities and London seems like a good place to invest. Please share some insight. Can email me [email protected].

Thanks