Can anyone tell me if there is such a thing as a purchase/debt consolidation loan in MO?
Can anyone tell me if there is such a thing as a purchase/debt
consolidation loan in MO?
The situation is this:
House asking price 120K, we are offering 90K
Needs 40-50K repairs (if all of the work is contracted out)
We have 40-50K debt (some secured, some not) as well as about 20K
equity in our personal residence.
House after repair will appraise out at 235-270K (per realtor, and a
"regular" mortgage company)
Are there any lenders who will dump our debt into the home (kind-of like
an "equity" loan) upon origination of the loan?
If this scenerio does not work, we are looking at trying to get the
property just to "flip" it.
Please let me know if there is such a loan available. We are willing to
do whatever it takes and we do not have horrendous credit either
Yes, those types of loans are available! That is how most
buy,fix,sell investors operate.
In most cases you have a first mortgage that covers the whole purchase
price, including purchase costs. Then you have a second mortgage that
pays for the repairs, materials, debt service on the first mortgage,
and other costs associated with getting the house sold.
Both mortgages are usually 1 year balloon mortgages, and although the
first mortgage sometimes comes through a mortgage broker, the latter
is almost always through a private lender.
Private lenders need to be located and cultured yourself, especially
if you want to get them to work with you on a regular basis, without a
lot of hassles. Most look at your track record, which blows a new
investor out of the water, unless you already have a report with some
close friends, like your own doctors, dentists, lawyers, etc.
When I first got started, I used the equity in my own home as added
assurance to the investor, along with the purchased property, and
offered a percentage of the net profits as a bonus. Once you have
done this two or three times, other private investors seem to come out
of the woodwork, seeking you out.