We put an offer on a fixer upper and will be using FHA financing to purchase it. The counter offer was much higher than anticipated with a note saying that they will have to fix any FHA required repairs. I don't really expect there to be too many repairs for the FHA loan, if any, if I understand the FHA requirements.
We do have a construction company and so should there be any repairs, we would prefer to make any repairs using our company. How can we structure the deal in a way that we can do the repairs ourselves without the risk of either party losing out in case the deal falls through?
I am not an expert on this but I believe FHA & VA loans the repairs must be made prior to closing so not sure that your company could do them unless you can get the seller to hire your company for the work....?
Yes, I believe the repairs need to be made prior to closing. I am wondering if there is a way that we could structure the deal in a way that they hire our company to do the repairs and we can reimburse them the cost of the repairs at closing. Or reduce the cost of repairs from the price of the house. Is that possible?
Can someone tell me if I can stipulate in my offer that repairs be made by a certain company? The company being mine or my father's company.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!