NEW Investor ... NEED help!!

NEW Investor ... NEED help!!

My name is Emeline, I just got started on Dean's book this week. I spoke to a RE this morning and he emailed me 7 pages of MLS homes. There is one home in particular that I like and I would like to keep it as a home because my family and I are in desparate need of a home. We have been living in a Motel since Oct because my husband is a carpenter and has been laid off since Sept 08. I started a new part-time job at a Community College and also expecting a child in June 09 but I would like to be a full-time RE investor someday.

I wanted to make offer in some of these homes but I would like to also find a good mortgage broker or someone with a private funding who have access to motivated buyer, so that I should be able to make some money.

But my first priority is the home that I wanted to keep. How can I buy it with a bad credit and be able to maintain the home and live in it. This particular home on the MLS has an asking price of $200K, it just listed on Mar 13, 2009. This is a 3 bedroom, 2 and 1/2 bath, 1700 sq feet with a 2 car garage. It is located in a nice neighborhood and this is one of the home that needed some cosmetic work. The comps in the area is range from $185K-$239K. I see a potential of making money in this home because my husband is a carpenter.

I also wanted to know if it is possible to make a contract and asked to access to the house. Have my husband do some work to raise the value of the house, look for a new bank to refinance the house and then use that money to close the house with and paid off the contract on the closing day? If I have up to 45 days to close the house. That way I should be able to live in the home.

Please help!! If it is possible with my situation to make an offer in the home now?


Emeline L. Faaumu-Niutei

Hello Emeline

If I understood the questions of your post, I believe you should ask your real estate agent the question you had in the last paragraph. Otherwise, I will do my best to start from the basics of purchasing your own home.

You asked "How can I buy it with a bad credit and be able to maintain the home and live in it. This particular home on the MLS has an asking price of $200K, it just listed on Mar 13, 2009"

You and your husband need verifiable income to be able to cover your mortgage payments and living expenses on top of being credit qualified. Also, do you have any money to put down? Unless you have other income,(i.e. husband working full-time, etc...) I can't see how you will qualify for a loan without enough money coming in to cover your mortage which will be $1073.00 not including taxes and insurance at 5% Not many part-time jobs can cover all of that if he is not able to add to your income. Plus if you just started your job, most banks would like to see that you have been working there for a couple of years.

I would also suggest you start by checking out your credit scores and see where they are.(there are credit repair options out there if you need it) Then find out if you could at least get pre-qualified and for how much. At that point you will know what your options are for purchasing your own home. I hope this helps you somewhat.

Best Wishes,


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CD homes

Look for someone that will sell on a contract for deed it does not require good credit and all terms are negotiable.

It is going to be hard not impossible to find a lender that will let you do work on a house before you close on it and I dont think there is a hard money lender around that would loan on a home you dont own yet. There just isnt any colateral but maybe a 3rd party investor would.

Best of luck



Happiness does not come from doing easy work but from the afterglow of satisfaction that comes after the achievement of a difficult task that demanded our best.
Theodore Isaac Rubin

NEW Invertor...Need Help!


Thanks for the input,I will definitely take it into consideration. It is nice to join a group of people that they took time to read each other's comment.


Emeline L. Faaumu-Niutei

NEW Investor ... NEED help!!

Hi Emeline,

Not sure what area of the country your in, but that house price sounds like So. Calif.? I'm no expert at this but I've read alot and I'm thinking you should look for a FSBO (For Sale By Owner) who owns the property and would carry the loan, or has an assumable "no qualifying loan". Read up on Dean's "No Money Down" ideas. With these type of deals you may have to get a house you need right now (a house to fix and profit from), in order to get your credit and finance's in line with your dream home...which you want.



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