Property Q&A in Long Beach>Question Details

Debra Bennett, Home Seller in Long Beach, CA

need a hardmoney loan to buy 4 units in Long Beach

Asked by Debra Bennett, Long Beach, CA Wed Mar 16, 2011

I would like to invest in 4 units where I am living, however I am low income and self employed. Property would generate $3,000 a month , valued at $310,000 .Bank foreclosed owe $210,00. Is this feasable

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6
There is hard money out there... most will need or want 20% or more down with high ficos... just use some caution with the, "Loan to Own" Lenders.
Brent James 714-397-3735
0 votes Thank Flag Link Mon Mar 21, 2011
Hi Debra, My nephew, Joseph Arendsen and Realtor, will be contacting you if he hasn't already. As I said earlier we are a turn key all in one RE brokerage, rehab contractor, property management, finance and investment company. We do offer hard money loans but that's just one of our programs.

We also invest in and partner with others in rental properties of 1 to 4 residential units. We are specialists in distressed properties i.e. pre foreclosure, foreclosure, short sale and probate properties. If you are currently the resident manager you have a big leg up on the deal already.

Let's talk soon. If my nephew hasn't contacted you feel free to contact him at 760 672-0174. Sounds like this deal could cash flow nicely and we are all about deals that pencil. Maybe we could do some business.
0 votes Thank Flag Link Thu Mar 17, 2011
Hi Debra,

My first question is why do you need a hard money loan? Most hard money loans are high in interest rates and short term; typically because they know the buyer can not qualify for their own typical loan IE: Conventional or FHA Loan and that is why they are looking for a private party. Also, if it's a bank repo (R.E.O) unit that you are looking at, they will not accept a hard money loan - they want you to SHOW THEM THE MONEY! Another option will be if the Seller is willing to carry the note (also you would need a substantial amount down) Let me know if you would like some recommendations for "Hard Money Loan"

If those other units are currently occupied and rented, you will be allowed to use that as part of your income to qualify. However, since it's a Bank Foreclosed property; I suspect they are currently vacant?...?.....?

Call me; would love to chat,
Lesley Harris, Realtor
(562) 673-0943
0 votes Thank Flag Link Thu Mar 17, 2011
To answer Johns questions, I do have comps in area range between $527,500 and $345,000. I have been taking care of these units for couple of years, prior to moving in myself. Area isn't that bad and I'm sure there wouldn't be a lot of turn overs, currently all family orientated. I do all the maintenance and repairs on the property, which would save me a lot.
0 votes Thank Flag Link Wed Mar 16, 2011
Do you have any comps for the past 90 to 180 days on the property? Do you have any cash to put up? How is your credit? Being self employed and having a low income isn't a bad thing if you have good credit and some cash. Would you be staying on as a resident manager? What part of LB is it in? There are some bad neighborhoods (hoods) in LB that investors tend to avoid due to crime rates, school districts, etc. What is the rent per unit?

What is the vacancy factor? What is your tenant turnover? These are two separate questions although they sound redundant. You may have a low vacancy factor but a high turnover in which case maintenance and repairs could become an issue.

We specialize in distressed properties and are a turn key, RE brokerage, construction rehab, property management, finance and investment company. If you could give us some more specific information we might want to discuss it with you in more detail.
0 votes Thank Flag Link Wed Mar 16, 2011
Hi Debra, hardmoney is available however it will require 25% to 30% down. Rates can range between 9% on up not to mention these are typically short term loans. We work with a few hard money lenders however your best bet would be to see if you can get a conventional loan or FHA loan that allows for a co-borrower :)
0 votes Thank Flag Link Wed Mar 16, 2011
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