Financing in 53590>Question Details

Claw, Real Estate Pro in 53590

Our fixed up house flip won't sell and we are considering getting a mortgage on it and renting it.

Asked by Claw, 53590 Sat Apr 14, 2012

But the banks are saying they won't give us a mortgage if it's been on the market during the past 6 months. What can we do? We've already lost money on this place. Need serious help. Thanks. Amy

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Hello Amy,

Going on just alittle information and not knowing the property make it difficult to advise. However, being a property in Sun Prairie I would like you to contact Michelle Hahn at Bank of Sun Prairie. Michelle is VP of lending and ask her to consider your property as a "portfolio" product. You may have higher cost, i.e., rate, arm, etc. at least it will be completed. In addition, Abbey Wentland from Fairway Mortgage has away of working Miracles. Her number is 608 234-0689.

Tell either lady that I recommend please.

If you would like to contact me directly to discuss in more detail, I can give you better insight.......

Good Luck,

Bill Baker

608 575-6731
Web Reference: http://findmadisonhomes.com
0 votes Thank Flag Link Thu Aug 2, 2012
Your Zip of 53590 comes up as Sun Prairie Wi which is why you are getting answers from this area. I still think approaching a credit union might be worth a try. Looked at the pictures. Now that the weather is warming you want to add some color in the form of flowers. Your agent can review the price issue as well. Again, good luck with the process.
0 votes Thank Flag Link Sat Apr 14, 2012
Lots of investors, as a fall-back position, rent the property out or offer it as a lease-option. That gets someone in there, some cash flow going, and--in the case of a lease option--a potential buyer down the road. (That happened with a renovation just a mile from where I live.)

The photos of your property are OK, but nothing really "pops." Maybe the refinished wood floors, but otherwise, while it looks good, there's nothing to "grab" people.

Another point: I don't know what the custom is in Ohio (and I know it varies geographically), but where I live the kitchen usually comes with appliances. If it doesn't in Ohio, OK. But if it's just that you took the pictures before the appliances arrived, then take new pictures with them in.

My sister and I are renovating a house, and we found some package deals on stainless steel appliances. GE refrigerator/freezer with ice maker, stove, microwave, and dishwasher for about $2,700 delivered. Those deals are online. (I know you've already lost money on the rehab. So you have to determine whether spending more is just "good money after bad" or whether it'd be a smart investment.)

Regarding financing, I'm guessing what you're running into is what homeowners run into when they try to sell, then decide to refinance. Lots of lenders don't allow that . . . but that's (from what I understand) primarily directed at owner-occupants. That's not your situation. Make sure the lenders understand the house is a flip, not one you lived in, tried to sell, and now want to refinance.

It's likely that at your local real estate investment club, you'll find lenders willing to work with you. Or at least investors who've been in the same situation and can advise you. Go to http://www.creonline.com and look for the link to the local real estate investment clubs. Contact them; attend some of their meetings.

Hope that helps.
0 votes Thank Flag Link Sat Apr 14, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Thanks for your help. We are in the Southwestern Ohio area. Banks are just flat out telling us it cannot be on the market for 6 months to give us a mortgage. here is the link:

http://www.sibcy.com/viewlisting.asp?mls=1283729&b=CIN&a…
0 votes Thank Flag Link Sat Apr 14, 2012
Wow beautiful home! Donn Temper said it right when he said you need some color, you might want to hang some pictures here and there and add some color in the kitchen and bathrooms and outside, and take some new pictures. Good Luck!
Flag Sat Apr 14, 2012
Hi Amy,

I would need more information before answering your question. I just had a client get a pre approval after being told NO by several banks and credit unions. There is always the option to do a rent to own. There are also a lot of houses on the market in Sun Prairie and an average of 5 per day coming on the market. Please give me a call at 608-279-4247 if you are interested in my help. Evans Properties, LLC does a lot of rent ups. If you prefer you can e-mail me at jflint@evans-properties.com Have a great day and good luck!
0 votes Thank Flag Link Sat Apr 14, 2012
The market appears to be stonger this Spring. If selling is still not an option, have you tried other lending institutions such as a credit union? Although lending requirements are changing all the time, it seems puzzling that you would be flatly denied with sufficient collateral. If you have looked at banks that are national, you may also want to check out community banks such as Wisconsin Commuinity Bank. Their decisions are more local.
The good news is that vacancy rates are the lowest in a long time and rents appear to be rising , depending on location. Good luck.
0 votes Thank Flag Link Sat Apr 14, 2012
What price range do you have this at? Is it currently listed? Houses have started to move some with multiple offers...
0 votes Thank Flag Link Sat Apr 14, 2012
also note: we bought it with family loan as a foreclosure 2 years ago and fixed it up - total rehab. such a disappointment
0 votes Thank Flag Link Sat Apr 14, 2012
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