All Forum Posts by: Eric Neith

There has to be wholesalers in your area.  You probably can find some right on BP, check craigslist for listings with wholesale(r) as a keyword or in the title.  Ask other investors where they are buying their properties from or if they might have one in their inventory that they want to unload for a few grand more than they paid.

I would tell they attorney what your looking for, something that is just outdated or up to a property that needs full rehab.  You know your limit.  Tell them you are preapproved and can close in 30-45 days, maybe quicker.  That is something your lender can tell you.  You know your capabilities.  Take your inspector through on your first walk through.  See if they can do a decent inspection in a shorter time frame.  They might give you a report that makes you comfortable waiving your inspection to make you offer a bit stronger.  Be creative and always do your due diligence. 

@Traci Cameron, Are there any wholesalers in your area?  See if they have any properties that they are having trouble unloading.  Explain to them up front your situation with using a loan, but you have skin in the game with a 20% down payment.  Reach out to probate attorneys in your area and see if you can get a jump on any estates that they are settling. 

Dave... What if that would be a primary residence?  Could you get away with a 5%-10% down payment?  Obviously proving to underwriting that it is my primary residence becomes a whole other issue.

You could house hack with an FHA loan with 3.5% down. Buy a 4 unit, occupy one and rent the other 3. They should also be able to use 75% of the rental income from the other 3 units towards your income qualification. That should give you a little more buying power. If you are low on cash for closing costs you can bump your offer higher and have the seller pay closing costs. If you bump the offer a bit, less profit is taken from the sellers net proceeds and they have no reason to give you a seller assist.

Downside is there is PMI the full length of an FHA mortgage, so refi when the opportunity becomes available.

Lola,  My broker I licensed in NJ.  If you're interested I can send you all her contact info.  If you send me your email, I can get her info over to you shortly.

To get in with little money, the FHA is a 3.5% down loan... but it does carry the PMI for the full length of the loan. Not a bad jump into investing option with the intent of a refi a short time later.

I would say get it in both locations. Depending on what states you’d get your license in. Some states don’t require you to take the class hours if your licensed in another state. You would only be required to pass their state exam. Definitely research the states so you know which one to get first.

I’m not sure of the time frame, what loan structure would you do for your next loan and are you looking for another 4 unit multi?

Peter, In regards to going FHA first and then his extra money for another property... What would be your next step for that second property?

Thanks Aaron... I was thinking after a year transferring the FHA from me personally to an LLC and finance out of that FHA during that transfer. I wasn't super worried about the PMI for a year, cause if its literally no money out of pocket and it has positive cash flow, I viewed that as a win.