My partner got a three family house under contract as an owner occupy. The cash on had that was available to purchase the property is no longer available.
Purchasing the home for 100,000k with a 35,000k of rehab and an ARV of 188000.
Question? Due to the owner occupy clause how can we close on this deal?
Option 1: The hard money lender that we have spoken to, state that they can not loan to owner occupy.
Option 2: Do a double close with transnational funding. However, the seasoning period is a year. So is this possible due that you would be purchasing the property yourself with a different lender.
So my 2nd question is, is private lending the only option at this point? Any suggestion?
If your contract is subject to an o/o clause, and you are not going to occupy it, you do not have a deal. Move on.
If you were truly intending to owner occupy and are in danger of losing the deal because you lost your cash down to secure traditional financing, then private financing or going back to the seller to change the contract to NOO are your only options I can see based on the info provided.
Thanks for the responses.
What I have been told as an option at this point would be to do a double close and as long as I show that my partner lives on the property for one year that it should close.
If this sounds right to you guys let me know. Otherwise I have to move on.
Also working on the private funding at the moment.
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