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Financing in Mission : Real Estate Advice

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Activity 2
Sun Feb 8, 2015
Chris Goulart answered:
The deals I run across in need of equity sharing typically involve rehab or construction/construction completion. Giving up a portion of your equity or profits is a good idea when you have profitable deals but not enough cash to work with to finance them. A lot of people I work with bring in a joint venture partner who has cash to work with. In this situation, the JV partner puts up the cash needed in exchange for a percentage of the profits when the property sells. While this may be a large dollar amount, it allows investors who are just getting started or have little cash to work with to get involved in real estate investing. ... more
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Sun Feb 8, 2015
Terry Farnsworth answered:
Fannie Mae has a program called HomePath - which sets less restrictive, "buyer-friendly" guidelines by which lenders must follow when lending money on a Fannie Mae-owned property. Your choice in homes would be limited to Fannie Mae-owned foreclosed properties, however the benefits to using this type of financing are great in my opinion:

HomePath financing offers:

1. Down payments as low as 3%
2. No mortgage insurance
3. No lender requested appraisal
4. Less competition - HomePath offers a 15 day "first look" period when the property is first listed, where investors are not allowed to bid.
5. Often the homes are lightly "rehabbed" to move in ready, with new carpeting, doors, paint, etc.

The caveat is - you'll likely pay a slightly higher interest rate with this financing, however mortgage interest is tax deductible currently, while mortgage insurance is not.

Check out www.Homepath.com for a full list of details and benefits.
... more
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