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Updated over 6 years ago on . Most recent reply

User Stats

66
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21
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Justin O'Malley
  • Lakewood, CO
21
Votes |
66
Posts

Is my "Owner Occupied" status worth anything to a partner?

Justin O'Malley
  • Lakewood, CO
Posted

*Disclaimer: this is not an advertisement to try to find someone to partner up with*

So I had an idea....As a newbie I don't have much for a down payment so I'm brainstorming options on how to break into the Denver real estate market. One major thing I think I could bring to the table is the fact that I'm trying to HOUSE HACK. Most experienced investors are analyzing properties based on their ROI so they could greatly benefit from a lower down payment. Would a FHA 3.5% loan allow me to accept a "gift" for a down payment from a RE partner to purchase a property as an owner occupier. I would be mostly interested in living for free so if the numbers worked to still cashflow with me occupying a room, and working as a property manager, would an experienced investor be interested. I've also considered the idea of rehabbing the place while I lived there so that increases my partnership value.

Theoretically would anyone find value in this trade off to get a lower down payment and have an unlicensed  "contractor" with skin in the game and a personal desire to do a good job rehabbing?

Looking for tips on how this process would work and the legality of partnering with someone that wouldn't live there while utilizing the lower down payment.

Most Popular Reply

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2,465
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3,861
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Patricia Steiner
  • Real Estate Broker
  • Hyde Park Tampa, FL
3,861
Votes |
2,465
Posts
Patricia Steiner
  • Real Estate Broker
  • Hyde Park Tampa, FL
Replied

It's mortgage fraud.

Justin, I'm concerned that you're trying to create a perception of value - instead of earning your own way as a real estate investor.  Your goal of partnering with a successful investor is simply one-sided.  The successful investor doesn't need to partner.

I appreciate that you're ambitious and ready to get started.  I strongly recommend that you increase your knowledge of real estate so you gain credibility in presenting ideas.  (I also recommend that you delete this post immediately - if doing so is possible).  Also, please consider volunteering with Habitat for Humanity - and learning some construction/rehab skills and knowledge.  It would also provide you the opportunity to meet "real, licensed" contractors and other professionals.  (The unlicensed "contractor," as you referenced, would be insulting to many rehab professionals...).  

Do the work and be the real deal, Justin.  "All hat, no cattle" won't get you what you want in this business.  

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