buying wholsales with VA in ogden?

Question

I am pre-approved for a VA loan and am looking for a house in Ogden Utah that will make a return after a live in flip. I have been looking on mls and am finding houses that have slim margins. I don't know if you can even buy wholesale with a VA loan. so I might be way off base. I'm thinking a year or less for "flip" timeline. I tried to buy a multi family but think I may have to wait for more inventory or a traditional loan where I don't have to occupy one of the units.

I have a moral dilemma as well I would like to run buy everyone. I have been working with a real estate agent, a really nice guy, but unfortunately his father passed away and has been dealing with that. I don't want to bother him with my searching while he is indisposed, but I don't want to delay either.

Bryan O. · Answer

Wholesale deals are very often done because of quick closing and avoiding all of the inspections and such. VA loans require an appraisal, so even if you found a wholesale deal, they will likely not want you. The VA appraisals are also the toughest ones, so any flaking paint and such will stall everything. Your best bet would be to find agents and property managers and build relationships. If they have "pocket listings" or know "tired landlords" that have deferred maintenance properties, they may be able to give you the drop on a deal before you are competing with buyers that can close quickly.

Otherwise, for VA, I would recommend traditional market methods (MLS). They are amazing, but not very wieldy (is that a word?).

William Hochstedler · Answer

@Jeremy Robinson

I think you're trying to compound too many strategies into a single purchase.   Consider this:

• Multi's are hard to flip
• A VA loan is a terrific opportunity to get great long-term financing unavailable to most of us.  Use other money with less restrictions for flipping.
• Generally speaking, properties that have flipping potential are physically distressed which might be a problem for VA.  (See @Becca Summers comment on wholesaling)
• As far as wholesale deals, two other problems are that they have short timelines that usually don't accommodate the loan process and very few Realtor(s) are comfortable with them.

There's good value in all asset classes in the Ogden market, but not a lot of home runs.  My advice would be to find something--either single family or multi--that exhibits good value, get the experience of the purchase process under your belt, then assess how much you are willing to take on.

As far as your dilemma with your agent, technically your agency relationship is with the agent's broker.  You need to first call the broker (who may also know more about the agent's situation) and have the conversation that Chris Mason recommends.

Jeremy Robinson · Answer

Thanks everyone, I initially thought it was a path I wouldn't be able to pursue, on the wholesaling front, but I was in a conversation with a guy at a reia down in Sandy utah last Thursday that said it might be an option. There was a guy at that reia who was a successful wholesaler that I wanted to get in a conversation with, but he was bombarded with questions the entire time, and didn't find a window to get in. They were talking real estate PhD level and my questions seemed elementary.

I think my initial plan to buy a cheap place, do a slow fix, and hoard all of my income might be my best option. The decent multis have a lot of competition so unless I get lucky, I think sfh might have to be my strategy. I will also be making more of an effort to get in contact with local ogden investors like Mike Gallagher, I Even drove the neighborhoods trying to find evidence of people fliping homes to try and speak with them or offer help for the learning experience, but didn't find anything. Thanks again everyone!

Chris Mason · Answer

One of his coworkers in his office can help you, and they will work something out with the commission behind the scenes. Tell him exactly what you just said, which is 100% reasonable and what most realtors would want to know (realtors get lied to a LOT, thus they appreciate honesty a LOT).

Mike Gallagher · Answer

Jeremy,

give me a call, I can help

Becca Summers · Answer

Most wholesale deals usually need to be a cash or hard money buyer. The biggest problem you'll find with a live in flip to meet your numbers is VA loans are pretty strict with the condition of the home so there aren't as many great deals to be had with the loan limitations.

For your moral dilemma, do you have a contact with your agent? As an agent myself I try not to let my personal life get in the way of my business and I hope none of my clients would ever consider dropping me because of a personal loss. (Which really how long can it take)  I can't answer what you should do.

buying wholsales with VA in ogden?

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