Does anybody on here know of any companies or individuals that specialize in these types of loans? I don't have the greatest credit in the world, but I have over $30k in equity in the property and simply needed anywhere from $12k-$15k out of the property to do several things to gain access to more capital. How can I get someone to help me with this?

I've already approached banks/lending institutions, but they've been no help thus far. Any ideas?

InvestorsWntd,

Sorry for the delay in response. We have all been rather busy lately.

In regards to your question, I have a few questions.

What have the banks told you? What is their reasoning for not approving the loan? How have you determined the equity in the property? How recent is your most recent home appraisal?

__________________
You can roll with me or under me. I don't care which one you choose! - - "me"

To be honest I think a Joint Venture is your only option here. The equity sounds good on the surface but banks and HML are so convervative that would not be enough to attract them.

__________________
Steven Brown
Cash 4 Houses, LLC
HomeVestors
Mobile, Al
251-366-HOME
steve.brown@homevestors.com

Most of the banks have basically told me that since I've only had it for less than 7 months and that the market just isn't there for 2nds right now, that even though I have that type of equity available, they're reluctant to do the loan. I've approached hard money lenders with equally no luck, because they usually want to have you refinance the complete note, which I'm not opposed to but I just dropped a large chunk on the first mortgage and I can't afford to do that again right just this moment.

Current tax appraisals show the value at $78, 500. I purchased it for $45,000 with a HML at 11.99% and 4 points. I don't have a most recent appraisal but that can be arranged at a short notice.

I'm a bit intrigued by what Steve is proposing but obviously I have questions. At this point I'm open to being creative as long as it helps everyone benefit and in the long run, I can get a little closer to realizing a goal. I already got past Step 1 which most people never cross even though they say they're interested in real estate in that I actually bought one. Now I just need help with Step 2 and that's leveraging some of the equity so I can get a stronger foundation in real estate investing.

So basically you want to cash out the equity and use to purchase another property?

Yes. I want to incorporate a real esate holding company and build business credit as well as purchase additional real estate as well.

You can get someone to factor some contracts that you may have or create a note on assets and sale the note to create cash credit. Also consider building supply credit with Lowes and Home Depot to by materials with.

Also you could get Home Depot Mastercard up to 25k to pay workers with.

__________________
Billy Brown
Business Success Academy Founder
Phone 251-272-1111
www.bmcincnow.com