Consolidation Loan In MO?

Q: Can anyone tell me if there is such a thing as a purchase/debt consolidation loan in MO? The situation is this: House asking price 120K, we are offering 90K Needs 40-50K repairs (if all of the work is contracted out) We have 40-50K debt (some secured, some not) as well as about 20K equity in our personal residence. House after repair will appraise out at 235-270K (per realtor, and a "regular" mortgage company) Are there any lenders who will dump our debt into the home (kind-of like an "equity" loan) upon origination of the loan? If this scenerio does not work, we are looking at trying to get the property just to "flip" it. Please let me know if there is such a loan available. We are willing to do whatever it takes and we do not have horrendous credit either

A: Yes, those types of loans are available! That is how most buy,fix,sell investors operate. In most cases you have a first mortgage that covers the whole purchase price, including purchase costs. Then you have a second mortgage that pays for the repairs, materials, debt service on the first mortgage, and other costs associated with getting the house sold. Both mortgages are usually 1 year balloon mortgages, and although the first mortgage sometimes comes through a mortgage broker, the latter is almost always

through a private lender. Private lenders need to be located and cultured yourself, especially if you want to get them to work with you on a regular basis, without a lot of hassles. Most look at your track record, which blows a new investor out of the water, unless you already have a report with some close friends, like your own doctors, dentists, lawyers, etc. When I first got started, I used the equity in my own home as added assurance to the investor, along with the purchased property, and offered a percentage of the net profits as a bonus. Once you have done this two or three times, other private investors seem to come out of the woodwork, seeking you out.