How to Finance a Foreclosure
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- Опубликовано: 7 май 2020
- How to finance a foreclosure with traditional financing, cash, or hard/private money.
Foreclosures are a great way to purchase a property with equity, but financing a foreclosure isn't the easiest of things to do.
How you fund a foreclosure largely depends on two things:
1. Access to the Interior
2. Time Frame
If you have access to the interior of the property, an internal appraisal or inspection can be completed. This is a requirement when dealing with traditional banks. If you do not have the ability to access the interior or the property, financing the property with a traditional mortgage is not likely.
Foreclosures are also often a very urgent matter. Traditional lenders aren't very good about working on a timeline. Consequently, funding a foreclosure is difficult with a bank if you have a window of 30 days or less.
Effective ways of financing a foreclosure is with cash, hard money, or private money.
Cash is fast.
Private Money is cheap.
Hard Money is effective.
Hi, Ryan:
I just stumbled on your channel while searching for info on buying foreclosed properties. Your videos are quite insightful. Many thanks for your generosity of spirit in sharing such great content with us for free.
Wishing you and your family a wonderful holiday season and I hope that your light will shine even more brightly in 2023.
Blessings,
Celia
I love your videos! I am getting ready to potentially buy a foreclosure home! I love your videos and appreciate this video along with others!
Thank you!
Thank u Ryan,the live from this morning was fun and thank u for the pep talk too
Thanks for joining!!! I hope I see you this Friday at 8am EST!!!
Thank you for sharing your knowledge
Thank you for liking the content! Don’t hesitate to reach out if you have any questions!
Goodstuff man!!!! Keep ‘em coming!!!
Thanks! Will do!
Well done and Thank you Ryan !
Thanks! I appreciate it!
Quick and straight to the point. Great video. Very informative.
Thank you!
excellent video
Good, to the point. Your videos are a great use of my time.
Thanks L B! That means the world to me.
@@RyanIngram
It's very true. I couldn't agree with @L B more. You are an excellent use of time. Thanks you so MUCH!
Another 9:36 of invaluable info. Thanks, and come see us in the ATL sometime!
Thank you! I really appreciate it, and for sure...I'm a huge fan of ATL!
Very insightful!!👍
Thanks Leo! I appreciate it! 💪😎
Great information!!!!👊🏿
Thanks!
A great video good teaching
Thank you so much!
This is EXACTLY what I was looking for! Thank you so much! Subscribed!
Thanks Katarina! I really appreciate the support! Looking forward to hearing more about your success! Don’t hesitate to reach out with any questions you might have!
Great vid
Thank you sir!
Ryan Ingram I’m looking to buy my first property and trying to soak up all the info I can. I appreciate your vids
Important info, access to interior seems super difficult. Cash seems to be key to grab a foreclosure.
I think you're right. Cash moves a lot faster.
Lol crazy watching this on a Friday. 2/5/21
Thanks Bear! Looking forward to seeing what you do with this info!
New subbie
Thank you Heavy Protection!
Hello,
Thank you for this information. It’s been incredibly informative. When getting family/friends to help finance. Would it be in the form of a gift letter? Thank you.
Hey Daniel! Great question. No sir, it’s secured by the first position mortgage on the property.
Where can I get the same white boards for my kids? Awesome videos!
Haha. These things just came from Home Depot! I think they might be called shower board, not white board. They’re around $12 each.
Thanks for the kind words!
I found a 1/1 without garage but it was tax lien $11k. It had frontage x depth alot of space that could be expanded to build new house. This same owner owned vacant lot on other side of neighbor so confused why they hadn't paid taxes on either property? I gave this info to my little sister to see if she wanted to buy it. She hasn't answered yet. I noticed no exemptions filed like over 65 or HS. I told sister we could change siding and add onto the space. She could raise chickens, turkeys and possible bees to stay busy after work. (*They're all free classes at Dept of Agriculture so she could afford to eat during this inflation!)
in your example, do i pay the 30k in cash upon getting approval ? or overall on the amount of loan ?
also, when do i contact hard money lender ? is it before i buy or after i win bid at court ?
thanks
Hi Ryan,
I just find your channel, Thank you for your information; Just I need to know if the hard money lenders will go to lend money to someone who has no experience in real estate for buying any foreclosure property?
Your advice is much appreciated in advance.
That’s really tough. I’m sure you can find someone, but it’ll be really expensive.
Hey Ryan! Very good information. One question, so if you buy a property that is on the Pre-foreclosure stage, all the payments that the current individual owes, transfer over to you as well correct? If so, how can this be covered. Out of pocket? Or financed? Thanks alot
If you have access to the interior, you can probably get financing on it. You may be able to work something out with the lender and assume the mortgage.
So once you purchase the foreclosed property and see what your working with interior wise can you then get financing from a bank for fixing or bringing up to code to resale or rent out???
Yes, absolutely.
Hi there. I love your channel. What state are you in and do you have an LLC?
Thanks Christina! I am in Ohio, and yes...I have several LLCs :)
@@RyanIngram thank you. Best of luck!
I just found your channel an hour ago today.... I just finished watching 3. I only have 25k in my savings, no debt, 3 months emegency fund ready, 780+ credit score as per Credit Karma, no real estate experience... can these info qualify me to acquire my 1st property?
Absolutely, that is plenty to get started in real estate investing. Do you have a W2 job and can show pay stubs? If so, nothing is really stopping you.
Yes, I do have W2. I’m working full time & pay stubs are always ready. I’m currently renting, do you recommend wholesaling or house hacking?
By the way, I just started taking notes in an actual NOTEBOOK. 😅 I hope to learn the rules of this game before I turn 60. Lol.
Were in the same boat except my credit is only at 700. Have you started & how is it going any possible pointers or advice.
Those Kredit karma credit scores are not real. I just applied for loans and my score came in way lower than my KK app says. FYI
Thank you. Can you please list where to find pre foreclosed homes, websites etc. Thank you for sharing.
I think PropStream is the best resource to find properties that are being foreclosed and are also in the pre foreclosure process. Here is a like to a 7 day free trial. geni.us/PropStream
Looking forward to hearing your thoughts!
How about properties owned by the bank but are not in the market yet; can you go to the bank and make an offer?
Hey Yvette! Great question. I don’t see why not. I think the hardest part would be to track down who you would need to speak with inside the bank. I’ve tried to do that with Duetche Bank and didn’t have any luck. I think they were just too large of a company.
Hi, Ryan. Would you recommend using a private money lender to pay for the buyer's fee that they want at the auction?
When we use private lenders we finance the purchase price, closing costs, and rehab amounts. As long as the ARV is there, I don’t see an issue in financing this cost.
@@RyanIngram Right, but the 5% that they want immediately at the auction, you would cough that up out-of-pocket?
@ryanferguson9249 Oh, I see. Yes sir. I would, or partner with someone with the cash if I didn’t have it.
how to find hard money/private
when you buy the property with Private money, how or what is the wording or contract that is used to so the Private money lender is secured?
It’s a mortgage note that is recorded with the county. There are two documents: the promissory note and the mortgage note.
So you sit down with a private money lender and fill out a promissary note and a mortgage note and then record those with the county?
Only the mortgage gets recorded with the county, the promissory note does not. That is held locally between you, the lender, and the title company.
What am I missing? In the example you gave the house is 200k. You get to borrow 140k.. Do you have to have an additional 60k?
How do you refinance with cash. #1. Your explanation was not clear. What is the cash for and how did you get a bank to finance after the fact???
The cash is to make the initial purchase. After you own the property, you can approach a bank and work with them to refinance the property to get some, most, all, or more than all of your money back.
Ryan Ingram so you put money down with cash and ask a bonk to finance the rest?
@@RyanIngram So you pay for the entire house with cash...than how does the financing work? you ask for a credit from the bank via refinancing?? They give you a credit in exchange for a mortgage? I'm sorry. I'm trying to understand but it's really unclear.
@@adesa1 you messed him up with your first question REFINANCE when I think you meant Finance . Dang spell check !
How are you refinancing with another bank if you paid cash for it? Confused
If you own a property, you can refinance it almost anytime you’d like.
But if you paid cash you own it free and clear..no banks
Right, but a bank will still lend on it. Just because you don’t currently have a loan on it...doesn’t mean you can’t have a loan on it.
Oh ok, As old as I am I never knew that😅 thanks for taking the time to explain!
Of course! Thanks for asking!
Would you be able to get a 203k loan?
If you have access to the interior, yes...absolutely.
Hey Ryan what’s up man its Zahid from el rancho on brown st I lost your number been watching your videos I feel ready to talk to you I want to invest in properties soon you should come visit so we can talk but thanks for the great videos
Hey man! Looking forward to connecting again. My email is ryan@seekwisdom.us
Too much unnecssary talking
Thanks for the feedback 🙏
@@RyanIngram screw that guys comment.Thank you