Comments on: Obtaining Real Estate Loan Prequalification Letters for Investment Properties

By: Hemant

Hemant — Sat, 25 Jul 2009 18:57:23 +0000

I owned a company that funded small businesses, micro-businesses, and mezzanine corporations. I searched for information on how you can start. Information is limited. I wonder why it is such a well kept secret. Possibly because there is lots of money to made financing business, but there also is a lot of risk. The only info is
http://www.businesslenders.com/why_history.htm
My advice is, unless you have unlimited financial resources, start small with micro-loans. They are easy to do and their is tremendous funding out there for companies and organizations to give consumers. Grants are available through the government for the micro-loans but only to organizations who give the loans. Banks also offer money as well as foundations.

If you have any questions contact me. I will assist you and if I do not have all the answers I will try to get them

By: granny

granny — Sat, 25 Jul 2009 10:23:26 +0000

Cool…I never heard of these terms before and I've been involved with real estate for over 20 years in my career. Thanks for teaching me!

Apparently this has to do with 'Settlement', not really loans or mortgages. I found this:

"…You referenced a "wet settlement." This is a term of art, which means that when a person goes to settlement, the lender's funds must be on the table.

Compare this to a "dry settlement," where there is no money available at the closing. Usually, the settlement company or attorney will complete the paperwork, send the legal documents to the lender for review, and then the lender will fund the transaction…"

Found at this site: http://realtytimes.com/rtcpages/20060529_wetsettlement.htm

Looking forward to learning more,
Elise Altergott, Principal Broker
Associate Mortgage: http://www.web-mtg.com/?src=answers
Associate Consulting: http://www.ac-fl.com/?src=answers

By: Antione J

Antione J — Sat, 25 Jul 2009 06:42:28 +0000

Cash for the land. A construction laon for the building, but you are going to need to give the bank 25% in cash for the down payment on that.

By: G G

G G — Fri, 24 Jul 2009 10:19:55 +0000

I know several agents that are mortgage brokers and real estate agents… it is not illegal.

They can NOT force you to use them for the mortgage, and if they give you "cash back" from their commission if you use them… their could be legal issues with that.

But offering you a mortgage as well as being your REA is perfectly fine.

By: dane L

dane L — Fri, 24 Jul 2009 03:40:03 +0000

It will try to buy a $100,000 loan for $30,000 and hopefully forclcose and sell home for $40,000.

By: contingentlaw

contingentlaw — Fri, 24 Jul 2009 00:53:30 +0000

Most government grants are in blighted areas where they want to spur rehabilitation of neighborhood properties. As far as I know there are no federal grants avalable unless you are revitalizing a property which will end up on the national register of historic properties, but these would have little to no profit potential due to the high cost of rehab to get the property to standards. The local programs generally only give 5-20k for help in rehabbing homes, but unfortunately come with so many strings attached that you will be begging them to take their money back just so you can get them out of your hair. Once you invite them in, you many times lose the grandfather clauses on any number of code requirements that have been put in place since the particular home was built and you have to spend as much if not more than the grant money to get the place up to the government standards that they require in exchange for the grant.

In my honest opinion, better to just get your own loan and go it alone….

By: First N

First N — Thu, 23 Jul 2009 18:22:44 +0000

Your mom or dad. Better yet, kill your parents and take their house.

By: Green Lizard

Green Lizard — Thu, 23 Jul 2009 06:22:14 +0000

Problem #1, you didn't shop enough

Problem #2, you actually signed for the 11% loan.

Talk to your friends and family, coworkers, etc… Get referrals to people that they've done business with and would trust to do business with again.

Unfortunately, high FICO's don't directly correlate to high IQ's, so anyone can be taken advantage of, regardless of credit. Your loan officer was either incompetent, a scumbag, or both. My money is on both.

By: JP29

JP29 — Thu, 23 Jul 2009 01:01:38 +0000

2-5 points

By: Antione J

Antione J — Wed, 22 Jul 2009 23:56:36 +0000

Commercial loans can work several different ways……here is one way:
A developer wants to start a project, first they locate people that invest in their idea (if they can't handle the expense themselves which is where most of the money is). Then they complete the project on time and under budget. Then one of two things happens, they either run the business or they sell the project to people who knows the field of the project. They then sell space to leasers or renters. Presto, commercial lending.