I made it my goal to call at least 2 banks today to ask about short-term investment loans so we could get prequalified. I called 4! I called a mortgage company, my local bank, and two other local banks I know about it.
Meanwhile, I have the weird duplex/garage apt. property I needed to make an offer on. I couldn’t come up with comps, and decided to “phone in a friend”. 🙂 There’s a wonderful lady at our local REIA clubs who has offered to help me. She knows her stuff. We’ll call her Susan.
As I was sitting on the phone with the loan officer, who sounded so sophisticated and smart, while I fumbled all over my words (and banking vocab!), I thought: as soon as you hang up, you get to call Susan!
I almost laughed out loud, and smiled to myself how strange it was to find myself looking forward to calling up some woman I don’t know to talk about a REAL ESTATE DEAL. Two months ago, THAT prospect would have had me sweating bullets. Now, it’s comfortable and easy. I hope it keeps going that way.
I talked to my investor friend and she knew the area, and understood how hard my predicament was. It would cash flow, but it’s overpriced. Hmm…We decided to see if I could get an option on the house, and market it to see if I could find a buyer. Of course, when we talked about the fact that he took out a $92,000 loan on the property in 2006, and I’d need to offer something ridiculous like $65-75k, we decided he probably wouldn’t take it, but that it’d be important to ask him to get back to me if needs to, and for me to follow up later.
So I called him and I couldn’t have asked for a better first rejected offer. 😀 He was nice, and explained that the reason the assessor’s value had dropped so much is b/c his city councilman felt sorry for him because of some terrible construction on the street that caused all of his tenants to move out, and they helped him out with his taxes. Sounds strange. I told him I understood, and that I knew he couldn’t accept my offer of $75k, but if he ever changes his mind, or hears of a house for sell, to please let me know.
By the way, the mortgage co could only pre-approve me for a long-term refinance (their appraisals wouldn’t allow many repairs). He suggested I get a 1st mortgage short-term loan, along with a line of credit if I want to rehab, and use that. Then to refi with him. He said if they needed a take-out letter from him to confirm that he would indeed refinance the property, he would. I called my local bank – she didn’t pick up. I called ultra-conservative local bank, and they have a product like that, but won’t let repayment be based on the sale of the financed property. Huh. And the third bank didn’t pick up.
I’m not sure how I can get prequalified. I want it for two reasons: 1) in case I can’t wholesale in time and need to close, and 2) to make offers on REOs and short sales. I’ll keep brainstorming.
Have a good weekend! We’re going to make a quick trip to DFW, and then back for a Vena Jones-Cox all day seminar on wholesaling. YAY!