Hard Money VA Loan Rehab ... Oh My?

Question

So this would be my first deal. Meaning I would be the one signing papers and taking control of the property, not handing it over to someone else.

So my good friend is in the market for a house. I recommended he get a MFD, so he could make money continuously. So we went looking and found 4 quads.

I'm trying to wrack my brain how to do the deal.

Another investor said to make the deal at arms lenght, i.e. buy the home, then sell to VA. Friend is a vet and can get a VA loan.

I didn't understand quite how to do it though. Here's my thinking:

• buy the quad with Hard Money
• if the building needs rehabbing hire someone to do that for me
• after VA inspection sell to my friend?
• settle hard money loan

But, would I be taken to the cleaners going this way? I just don't know how to do it. I know private investors are supposed to have all sorts of options at their fingertips, but I don't have a lot of experience, nor know a lot of options.

Jaren Barnes · Answer

Hey @Kevin Cardinale !

I don't know the answer to your question, but I do have a suggestion.

Maybe try tagging some BP members from your local market with the @ symbol just to get some attention to your post.

Best of luck friend!

Kevin Cardinale · Answer

no no he is definitely going to be occupying, as his primary and only residence.

Here's my concerns, if I take hard money, the interest will kill any potential profit I might make.

Mitch Dowler · Answer

I am myself an Army retiree. A VA is only for owner occupied property. After closing the VA expects that the veteran will personally occupy the property for a minimum of two years after closing unless there is some good reason such as deployment orders if the veteran is still serving. A four unit property can be purchased if the veteran occupies at least one unit, the other three can be leased out.

If it is not intended to be occupied by the veteran beware of prosecution for fraud.

Wayne Brooks · Answer

That's the basic process, but make sure your friend gets qualified for the loan first, specifically for a multi unit loan as the rules are slightly different, and the property will need to appraise. There are also some fees that can only be paid by the seller.

Hard Money VA Loan Rehab ... Oh My?

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