How to get financed with roof leak

Question

Aaron Mazzrillo · Answer

You missed it? It is right here:

"So my question is if anyone had suggestions on how I would be able to still get this financed through an FHA loan?!"

Aaron Mazzrillo · Answer

I guess we haven't met. You should come out on my yacht some time. I'm the captain of it and I call it the Obvious.

Aaron Mazzrillo · Answer

So, you don't have the money now to do the repairs? Why would you buy something you can't afford? Here is a great educational video you might want to check out;

https://vimeo.com/41152287

David Grabiner · Answer

Is there a reason you need FHA funding? could you not just use a conventional loan with a low down payment?

I bought a fourplex with a conventional loan that needed a new roof. I got a quote from the roofer then made the offer stating 7K would be paid to said roofer at closing to pay for the roof, so essentially I wrapped that expense into the mortgage. I think this could work for you.

However, I think you should really check and see what repairs need to be done 114K for a 4plex with potential GMI of $3600 seems too good to be true. I would assume that it needs substantial repairs otherwise someone would have purchased it already.

Todd Plambeck · Answer

@Aaron Mazzrillo - Stop making sense...

If the seller is unwilling to pay for the repairs, find a roofer who will wait until closing and get paid then, raise the sales price to cover the repairs.  Alternatively, an FHA 203k loan might be looking into.

Dylan Vargas · Answer

@Aaron Mazzrillo @Ashley Hernandez Aaron, I do not see anywhere in the prior post Ashely asking for people to commit fraud or be conspirators in some loan scam. You don't need to be a jerk about it. Advice is one thing but cmon man! Outside of your first paragraph of your last response the remainder is a good read.

Aaron Mazzrillo · Answer

Here is the problem and why I've kind of messed around with my responses; you are trying to get government backed financing, but play some tricky games like an investor. You're mixing water and fire. If you're going to send the government a written invitation to participate in your deal, then you have to play 100% by their rules. Otherwise, you are committing loan fraud, which by the way is a felony. Most likely you won't get caught if you figure out a way to operate in the gray area, but there are lots of felons who thought exactly the same thing. Then to make it worse, you're asking for conspirators on a public forum.

My suggestion; find another deal, or better yet, find another financier. The reason why you see some investors walking around having done 100s of deals and others struggling to get their first isn't lack of deal flow, but lack of understanding how financing really works. The more cheap money you get your hands on, the more deals you can do. Those who use hard money and pay high interest and points, hand off a significant portion of their profits to their greedy lenders. Those who try to use banks and have to sign their life away struggle to get to more than 1 deal a year done and are stuck with horrible, non-negotiable, personally liable debts. Regardless of what you've been taught, banks are not your friends. They are in business to make a profit. Well, they are not your friend at least not until you have a net worth of a few million and significant cash flow. It is much easier to borrow $5M than it is to borrow $100K.

The deal I'm currently in escrow on I am paying $100K. My private lender is funding $120K, no points. How many houses can you buy a year if you get $17K checks at the close of escrow? He then said he has another $850K sitting idle and asked if I had anything coming up. That inspired me to work harder to put his money to work. If you turn that around, why work hard when you have no way to even close? An apartment building with a bad roof and government financing isn't a deal. It's a pass. Not even worth a 2nd look.

Fix your financing.

William Walker · Answer

Lol, that was awesome!  Steve Martin's face is perfect.

How to get financed with roof leak

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