Investor · Raynham, MA · Member since 2015 · 9 posts · 0 votes
I need your financial assistance. I currently live in the South Shore area of Massachusetts, where there is still a lot of great deals around (Lots of meat on the bones in the area). I'm looking to purchase an REO for myself because I'm tired of paying high rent.This is disabling me from flipping full time. We have a great contractor’s network. Here is the info:
* REO Property * Fixer * 4/2 * 1,500 sq ft or Bigger
* Purchase price: Under 150K all CASH, "as is" * Approx (ARV) of: 265K, "as is"
Here is my situation: * Low credit score due past. I do not qualify for a Conventional Mortgage. * First Time Homebuyer. * Do not have money for a down payment.
Since I need to be creative, I figure I need a REO Realtor to work with me now and in the future (double dipping) and also investors can assist me with Private funds or Hard Money. Please let me know your terms and conditions.After total rehab I can get Conventional Mortgage. This property is for me to live in as my primary r
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
10y
I'm going to be frank. You are not in a position to buy a house. Yes, it might seem like its cheaper than rent if you compare PITI on the house to rent. But that's a deeply flawed comparison. When you're renting and the furnace fails, you call the landlord. When you're the owner, you get out your checkbook. No money and bad credit is a good way to become "house poor". And chilly.
Unless you pay cash for a residence, you're still paying "rent" on the big pile of money you borrow.
Hard money lenders and knowledgeable private lenders WILL NOT let you move in. If you do, they will foreclose. That's because a residential loan is a much more heavily regulated business than commercial loans.
Your best bet for a low down purchase if FHA. I've never seen a REO that would pass FHA inspections. You might look into FHA 203K rehab loans, though.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
10y
I'm going to be frank. You are not in a position to buy a house. Yes, it might seem like its cheaper than rent if you compare PITI on the house to rent. But that's a deeply flawed comparison. When you're renting and the furnace fails, you call the landlord. When you're the owner, you get out your checkbook. No money and bad credit is a good way to become "house poor". And chilly.
Unless you pay cash for a residence, you're still paying "rent" on the big pile of money you borrow.
Hard money lenders and knowledgeable private lenders WILL NOT let you move in. If you do, they will foreclose. That's because a residential loan is a much more heavily regulated business than commercial loans.
Your best bet for a low down purchase if FHA. I've never seen a REO that would pass FHA inspections. You might look into FHA 203K rehab loans, though.
Real Estate Agent · Watertown, MA · Member since 2015 · 366 posts · 77 votes
10y
Yes I agree with Jon, FHA 203K loan might be your best bet unless you take in a JV partner, then sell in a year or two when you have some equity. Private/Hard money is usually 12-15% and up to 3 points.