Investment Property Loans for Condos – 4plexowner?

[Kingside]

Will the numbers still work if you get a hard money lender at higher rates and fees instead of conventional financing? If you have a hard money lender lined up who you develop a relationship with, you could approach sellers as effectively offering cash to get discounts, and then refinance to conventional when conditions permit. Obviously there are risks with assuming this will happen. So be sure of your numbers and assumptions.

As a practical matter, I think a hard money lender is the only hands on decision making lender you will find that will be there for final say on loan approvals for investment property in the current lending climate.

[nostradamus]

This is not a mortgage-type situation, kid. You need venture capital. Just buy one unit and try to make it CFP (cash flow positive). Then re-evaluate your plan.

Seriously, no trash collection? Wine just shot out my nose.

Anyhow, no guts no glory. I say go for it and let us know!

[nostradamus]

This is not a mortgage-type situation, kid. You need venture capital. Just buy one unit and try to make it CFP (cash flow positive). Then re-evaluate your plan.

Seriously, no trash collection? Wine just shot out my nose.

Anyhow, no guts no glory. I say go for it and let us know!

[nostradamus]

This is not a mortgage-type situation, kid. You need venture capital. Just buy one unit and try to make it CFP (cash flow positive). Then re-evaluate your plan.

Seriously, no trash collection? Wine just shot out my nose.

Anyhow, no guts no glory. I say go for it and let us know!

[nostradamus]

This is not a mortgage-type situation, kid. You need venture capital. Just buy one unit and try to make it CFP (cash flow positive). Then re-evaluate your plan.

Seriously, no trash collection? Wine just shot out my nose.

Anyhow, no guts no glory. I say go for it and let us know!

[nostradamus]

This is not a mortgage-type situation, kid. You need venture capital. Just buy one unit and try to make it CFP (cash flow positive). Then re-evaluate your plan.

Seriously, no trash collection? Wine just shot out my nose.

Anyhow, no guts no glory. I say go for it and let us know!

[4plexowner]

What’s a hard-money lender charge these days? I would guess about 18% – just another example of how people with cash have a huge advantage

If you are really serious you might figure out how to bring the HOA current and then purchase the unit(s) with conventional financing – but that means putting $15K of your money into a very precarious position – not something I would do myself – you’d essentially be loaning or gifting the HOA $15K which would, IMO, be a material fact that would have to be disclosed to a lender – this would be a red flag to an underwriter and they might still stay away from the deal

~

I have mentioned this issue as one of the many bad aspects of condos – here we have a situation where any owner in this property is unable to sell their unit unless a cash buyer comes along – and cash buyers who understand the power of their position don’t pay full price

There was a condo property in El Cajon where the HOA had stopped paying the insurance on the property – another situation where only a cash buyer could close escrow

[4plexowner]

What’s a hard-money lender charge these days? I would guess about 18% – just another example of how people with cash have a huge advantage

If you are really serious you might figure out how to bring the HOA current and then purchase the unit(s) with conventional financing – but that means putting $15K of your money into a very precarious position – not something I would do myself – you’d essentially be loaning or gifting the HOA $15K which would, IMO, be a material fact that would have to be disclosed to a lender – this would be a red flag to an underwriter and they might still stay away from the deal

~

I have mentioned this issue as one of the many bad aspects of condos – here we have a situation where any owner in this property is unable to sell their unit unless a cash buyer comes along – and cash buyers who understand the power of their position don’t pay full price

There was a condo property in El Cajon where the HOA had stopped paying the insurance on the property – another situation where only a cash buyer could close escrow

[4plexowner]

What’s a hard-money lender charge these days? I would guess about 18% – just another example of how people with cash have a huge advantage

If you are really serious you might figure out how to bring the HOA current and then purchase the unit(s) with conventional financing – but that means putting $15K of your money into a very precarious position – not something I would do myself – you’d essentially be loaning or gifting the HOA $15K which would, IMO, be a material fact that would have to be disclosed to a lender – this would be a red flag to an underwriter and they might still stay away from the deal

~

I have mentioned this issue as one of the many bad aspects of condos – here we have a situation where any owner in this property is unable to sell their unit unless a cash buyer comes along – and cash buyers who understand the power of their position don’t pay full price

There was a condo property in El Cajon where the HOA had stopped paying the insurance on the property – another situation where only a cash buyer could close escrow

[4plexowner]

What’s a hard-money lender charge these days? I would guess about 18% – just another example of how people with cash have a huge advantage

If you are really serious you might figure out how to bring the HOA current and then purchase the unit(s) with conventional financing – but that means putting $15K of your money into a very precarious position – not something I would do myself – you’d essentially be loaning or gifting the HOA $15K which would, IMO, be a material fact that would have to be disclosed to a lender – this would be a red flag to an underwriter and they might still stay away from the deal

~

I have mentioned this issue as one of the many bad aspects of condos – here we have a situation where any owner in this property is unable to sell their unit unless a cash buyer comes along – and cash buyers who understand the power of their position don’t pay full price

There was a condo property in El Cajon where the HOA had stopped paying the insurance on the property – another situation where only a cash buyer could close escrow

[4plexowner]

What’s a hard-money lender charge these days? I would guess about 18% – just another example of how people with cash have a huge advantage

If you are really serious you might figure out how to bring the HOA current and then purchase the unit(s) with conventional financing – but that means putting $15K of your money into a very precarious position – not something I would do myself – you’d essentially be loaning or gifting the HOA $15K which would, IMO, be a material fact that would have to be disclosed to a lender – this would be a red flag to an underwriter and they might still stay away from the deal

~

I have mentioned this issue as one of the many bad aspects of condos – here we have a situation where any owner in this property is unable to sell their unit unless a cash buyer comes along – and cash buyers who understand the power of their position don’t pay full price

There was a condo property in El Cajon where the HOA had stopped paying the insurance on the property – another situation where only a cash buyer could close escrow

[recordsclerk]

If you have the cash to buy one unit, why not buy 1 unit first. Then take out a HELOC on the property. You should be able to get about 75% LTV. Then save until you have enough to buy a second unit cash. You said you don’t have a current mortgage. Do you own a home outright. You could borrow against your home with a really good rate currently. If you are a renter, is it possible to live in the unit you purchase? You would be able to get a really good rate on a HELOC.

[recordsclerk]

If you have the cash to buy one unit, why not buy 1 unit first. Then take out a HELOC on the property. You should be able to get about 75% LTV. Then save until you have enough to buy a second unit cash. You said you don’t have a current mortgage. Do you own a home outright. You could borrow against your home with a really good rate currently. If you are a renter, is it possible to live in the unit you purchase? You would be able to get a really good rate on a HELOC.

[recordsclerk]

If you have the cash to buy one unit, why not buy 1 unit first. Then take out a HELOC on the property. You should be able to get about 75% LTV. Then save until you have enough to buy a second unit cash. You said you don’t have a current mortgage. Do you own a home outright. You could borrow against your home with a really good rate currently. If you are a renter, is it possible to live in the unit you purchase? You would be able to get a really good rate on a HELOC.

[recordsclerk]

If you have the cash to buy one unit, why not buy 1 unit first. Then take out a HELOC on the property. You should be able to get about 75% LTV. Then save until you have enough to buy a second unit cash. You said you don’t have a current mortgage. Do you own a home outright. You could borrow against your home with a really good rate currently. If you are a renter, is it possible to live in the unit you purchase? You would be able to get a really good rate on a HELOC.

[Author]

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