Partnering to utilize owner occupied financing

Partnering to utilize owner occupied financing

Rental Property Investor · Chicago, IL · Member since 2019 · 77 posts · 36 votes

I currently have a 4 plex, duplex and live in my SFH. My rentals cash flow around $4,500 a month. I just recently purchased and rehabbed the duplex so I do not have much capital at the moment.

That being said, I have had multiple friends who have approached me about getting into real estate as they have watched me have success these past 5 years. We are all in the Chicago area and they currently rent. I am curious to know if anyone has been in a situation where they ha e partnered with someone to use their ability to get an owner occupied FHA loan on a small multi family. If so, how did you structure things and could you share your experience.

I heard the guest on this weeks podcast #348 talk about how she did this with her sister and it really had me thinking. For example, could I partner with them to buy a 4plex, they live in it and I manage it.

Any thoughts or feedback would be appreciated.

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Lender · Chicago, IL · Member since 2018 · 5 posts · 5 votes
7y

@Kyle D Birch I have worked with investor groups to do some creative financing. There may be a less expensive way than FHA also. Feel free to message me. I just sent you a connection request.

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  • Lender · Chicago, IL · Member since 2018 · 5 posts · 5 votes
    7y

    @Kyle D Birch I have worked with investor groups to do some creative financing. There may be a less expensive way than FHA also. Feel free to message me. I just sent you a connection request.

  • Rental Property Investor · San Antonio, TX · Member since 2019 · 69 posts · 12 votes
    7y

    @Santiago Martinez What sort of creative financing? I'm leaning towards an FHA 203k for a slightly distressed duplex, but would love to know a less expensive way. I just sent you a connection request. Thanks

  • Lender · Chicago, IL · Member since 2018 · 5 posts · 5 votes
    7y

    Hello Brandon.  My bank only does renovation/construction loans in the Chicagoland area.  I see you are from CA but if you have a project in the Chicagoland area feel free to message me.  

  • Real Estate Broker · Chicago, IL · Member since 2015 · 147 posts · 73 votes
    6y
    Originally posted by @Santiago Martinez:

    @Kyle D Birch I have worked with investor groups to do some creative financing. There may be a less expensive way than FHA also. Feel free to message me. I just sent you a connection request.

    I'm guessing your bank is a portfolio lender that doesn't offer an FHA or Freddie/Fannie product? Do you happen to know the answer to the question anyways? thanks

  • Paul DefnginPro Member
    Lender · Rockville, MD · Member since 2008 · 498 posts · 199 votes
    6y

    Under HUD Guidelines, co-borrowers needs to be related by law, blood, marriage. That podcast said the key word-“sister” which why they were able to do it. 

  • Daniel DietzPro Member
    Rental Property Investor · Reedsburg, WI · Member since 2011 · 1k+ posts · 857 votes
    6y

    @Paul Defngin, being in the business, do you know if my nephew would qualify as 'blood' relative? Seems like it should, but want to make sure before we go down that road.

    Thanks, Dan Dietz

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