Private Lending & Conventional Mortgage Advice

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Kyle D Birch
  • Rental Property Investor
  • Chicago, IL
37
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Partnering to utilize owner occupied financing

Kyle D Birch
  • Rental Property Investor
  • Chicago, IL
Posted Sep 22 2019, 06:15

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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Santiago Martinez
  • Lender
  • Chicago, IL
5
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5
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Santiago Martinez
  • Lender
  • Chicago, IL
Replied Sep 22 2019, 07:14

@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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Brandon Kingcaid
  • Rental Property Investor
  • San Antonio, TX
12
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68
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Brandon Kingcaid
  • Rental Property Investor
  • San Antonio, TX
Replied Sep 23 2019, 07:29

@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

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Santiago Martinez
  • Lender
  • Chicago, IL
5
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5
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Santiago Martinez
  • Lender
  • Chicago, IL
Replied Sep 23 2019, 07:32

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.  

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Zoran Stanoev
  • Real Estate Broker
  • Chicago, IL
70
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147
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Zoran Stanoev
  • Real Estate Broker
  • Chicago, IL
Replied Sep 25 2019, 19:22
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

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Paul Defngin
  • Lender
  • Rockville, MD
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453
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Paul Defngin
  • Lender
  • Rockville, MD
Replied Sep 25 2019, 21:39

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. 

Lender (#NMLS 199791)

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Daniel Dietz
  • Rental Property Investor
  • Reedsburg, WI
830
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1,389
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Daniel Dietz
  • Rental Property Investor
  • Reedsburg, WI
Replied Sep 26 2019, 05:39

@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