quadplex

5 Replies

I am a newbie, and I have been following a foreclosed quadplex, it was under contract but now it is available again but has not been re-listed. It needs some rehab but it is really a great deal, basically flooring and a kitchen in two units. All four units have new electric and plumbing. Asking 69K should appraise for at least 120K, that is what the neighboring quad sold for in June 2014. My credit score is low and funds are limited, how can I get creative with this when it is a REO?

Contact a local fHA lender there are many programs for loan assistance

http://www.homeloanlearningcenter.com/consumerhelpdesk/specialprogramsforhomebuyers.htm

You could find a short term partner to cosign on the loan until you get your credit up then refinance after a year or pay a credit repair company to bump up your score 100pts within 90 days and write the offer allowing for a 90 day close for due diligence, pending financing etc. There are also loans out there by hard money lenders that do not look at your credit as much but you would want to refi in a year this way also b/c its expensive money. When you are looking to purchase a fourplex the bank is looking at the asset more than your credit to see if the income data is sustainable but they do look at your credit. They also will look at your history in owning/managing units for consideration. Make sure you have ran your cash flow figures correctly, have sound #'s for rents in the area, and multiple quotes for the rehab. You can never be too cautious when running the #'s so be sure you have included all the variable expenses before you move forward. 

Best of luck

I am interested to know what credit repair company can raise your credit score by 100 pts?

@Teresia M.   Getting your credit up by 100 points will take a stratigic plan. Get your credit pulled by a local loan officer, go over your report with them and start doing what you need to do. Google "tips for raising my fico score" and other things similar to that and start taking action. There IS NO MAGIC DUST to get your fico score up, dont pay for a service to do this.

@Steven Picker is right, you might be able to qualify for an FHA loan and buy this house... but if its not in great shape, you may need to do an FHA 203k loan (a rehab loan) and they are harder to do than just a normal FHA loan (I was an FHA lender for 15 years).

@Jared K. is right, you should try to work with a local investor/partner on this deal since its an REO... the chances of doing a "creative" deal are almost zero.

Originally posted by @Teresia M. :

I am a newbie, and I have been following a foreclosed quadplex, it was under contract but now it is available again but has not been re-listed. It needs some rehab but it is really a great deal, basically flooring and a kitchen in two units. All four units have new electric and plumbing. Asking 69K should appraise for at least 120K, that is what the neighboring quad sold for in June 2014. My credit score is low and funds are limited, how can I get creative with this when it is a REO?

I am all about being creative, but you have to ask yourself a question. Do you want to buy few run down fourplexes, and stall out, or do you want to have extraordinary success?

Credit, and cash are eventually going to become very important. Excellent credit alone can  be a strong partner with absolutely no say in your deals.

My suggestion is to be super creative and invest 12-24 months in a strong foundation of knowledge, networking, personal credit, business credit, and saving as much cash as possible. Then you will be able to purchase higher quality properties that will get you to your goals faster. 

It takes the same amount of work to buy 4 units, as it does to buy 20 units. Make the best use of your time.

Brandon L., Real Estate Agent in VA (#0225225026) and NV (#181107)

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