203k Loan Newbie - Looking for Assistance

Flipper/Rehabber · Dallas, TX · Member since 2018 · 7 posts · 1 vote

I have been wholesaling real estate for the last 8 years, along with a few flips completed. I am looking to take advantage of the 203k loan in order to purchase a flip for my primary residence. I am looking at off-market deals, but they all need a very quick close and do not accept 203k, (cash or hard money only). Should I be shopping on market for an eligible property? For the record, I am not opposed, I am just new to this and do not know where I should begin my hunt for discounted properties accepting 203k loans.

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Matthew CrivelliBusiness Member
Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
1y
Quote from @Alex Cifelli:

I have been wholesaling real estate for the last 8 years, along with a few flips completed. I am looking to take advantage of the 203k loan in order to purchase a flip for my primary residence. I am looking at off-market deals, but they all need a very quick close and do not accept 203k, (cash or hard money only). Should I be shopping on market for an eligible property? For the record, I am not opposed, I am just new to this and do not know where I should begin my hunt for discounted properties accepting 203k loans.
You will need to find a seller who is willing to wait on your conventional or FHA lender to fully underwrite the loan. These 203k loans can take 60-90 days to close, so many hoops to jump through. Wholesalers typically don't have the time or patience to deal with this. It also puts you in a tough spot because you are essentially competing with wholesaler to get the property under contract in the first place and they can offer the seller a quick hassle free close.

I would suggest you work with a real estate broker and try to find a property that is off market.
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Obed Calixte
Real Estate Agent · St Petersburg, FL · Member since 2019 · 320 posts · 182 votes
1y
As a wholesaler you have the skillset to identify off market properties and find the owner's pain point(s) on your own. Not every homeowner is looking for a cash deal or quick close. Structure your offer to match the needed terms of a 203K loan.
Otherwise target slow selling fixer uppers on market.
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Alex Cifelli
OP
Flipper/Rehabber · Dallas, TX · Member since 2018 · 7 posts · 1 vote
1y
Quote from @Obed Calixte:

As a wholesaler you have the skillset to identify off market properties and find the owner's pain point(s) on your own. Not every homeowner is looking for a cash deal or quick close. Structure your offer to match the needed terms of a 203K loan.
Otherwise target slow selling fixer uppers on market.

Absolutely! My next round of mailers are dropping today so I am sure I will come across the right seller. I am however, trying to get ahead of the game, as I know the closing time-frame can potentially take a few months. These are great tips, I'll head over to the MLS and see what I can do. Thank you, Obed.
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Alex Cifelli
OP
Flipper/Rehabber · Dallas, TX · Member since 2018 · 7 posts · 1 vote
1y
Quote from @Matthew Crivelli:

Quote from @Alex Cifelli:

I have been wholesaling real estate for the last 8 years, along with a few flips completed. I am looking to take advantage of the 203k loan in order to purchase a flip for my primary residence. I am looking at off-market deals, but they all need a very quick close and do not accept 203k, (cash or hard money only). Should I be shopping on market for an eligible property? For the record, I am not opposed, I am just new to this and do not know where I should begin my hunt for discounted properties accepting 203k loans.
You will need to find a seller who is willing to wait on your conventional or FHA lender to fully underwrite the loan. These 203k loans can take 60-90 days to close, so many hoops to jump through. Wholesalers typically don't have the time or patience to deal with this. It also puts you in a tough spot because you are essentially competing with wholesaler to get the property under contract in the first place and they can offer the seller a quick hassle free close.

I would suggest you work with a real estate broker and try to find a property that is off market.

Certainly. I will be discussing further with my lender, but I am curious to know if I have a competitive advantage on price in exchange for the longer close. I am sure connecting with the right real estate broker will also help answer that question. Thank you for the tips!
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