All Forum Posts by: John Kent

This may fall under unlicensed brokering of real estate since you would be negotiating the terms of a real estate contract for another and you are an interested third party receiving compensation from the transaction.  

@Jose Rodriguez as others have mentioned Orlando is quite the hot market at the moment. If you can find a deal there is definitely money to be made. 

Our two main investor associations are CFRI - Central Florida Realty Investors and GoREIA. The both have websites and if you are local or in town you should check out the meetings. It may also be a good idea to find a local agent to work with. 

@Devin Scott have your friend call a mortgage broker and explain his living situation. If the underwriter is willing to classify the subject property as his primary residence then he is good to go. If he has an uncommon circumstance that he would like considered only the lender can provide a worthwhile opinion. However, lying on the mortgage application is always fraud so he should complete the application honestly. 

@Devin Scott for your friend to use an owner occupant loan the property will need to be his primary residence. Just living there sometimes does not mean primary residence. Generally speaking a primary residence is where one lives most of the time. There are exceptions if one has a reasonable reason acceptable to the lender. He will be required to list his housing history on the loan application along with a list of real estate currently owned. He will also have to fill out the questionnaire at the end of the application about his intended use for the property. Lying on the application is mortgage fraud. 

If asking for a second home mortgage lenders will have a minimum distance restriction. He will have to ask the lender what the minimum distance from his primary residence that they will allow for a second home purchase. 

When it comes to not getting caught committing fraud, Don't Commit Fraud. In lending everything has a paper trail down to the smallest detail. All of the third party providers involved in the transaction have the responsibility of making known any part of the transaction that has been misrepresented once the misrepresentation becomes known to them. 

It may help lower the cash requirement as closing if it can be negotiated that the seller pay all of the non-lender closing costs and then the maximum amount of closing cost contribution toward the lender's closing costs allowed by the lender. If there is any contribution money left over buy points to lower the interest rate. Buyer demand is high in our market so this is probably only realistic if your seller is fairly motivated to get rid of the property. 

The best of luck to your friend. 
 

@Duverson Jean you might be best suited to get The Book On Rental Property Investing from the Bigger Pockets bookstore. This can fill some knowledge gaps as you get started. 

Link to the Bookstore: https://www.biggerpockets.com/store

Get prequalified for financing first this will determine how much you can afford to buy. If you need a referral to an FHA lender PM me. Once you get prequalified finding a real estate agent to help you find a property would be a good next step.

Buying small multifamily owner occupied is tough in the Orlando market right now. We have a very low vacancy rate and minimal supply of small multifamily housing. Happy Hunting!

Welcome to the Bigger Pockets community Duverson. All the best to you as you begin your REI journey.

The Central Florida Realty Investors Club (CFRI) and GoREIA are our local real estate investor clubs. They have monthly meetings in the Orlando area where you can meet other local investors and real estate related vendors. 

@Elaine Jordan I will PM you with a Florida corporate formation attorney who sets up Special Purpose LLC's with the property operating agreement and documentation.

@Greg Mayer first think you should do is contact the owner of the property and find out if they are interested in selling. Then make sure you find out about the notice. If the property was used to make meth remediation can be costly and complicated.

If the owner is willing to deal, you can then ask the investor if they would like to JV the deal with you for a split of the profits so you can learn. I would also consider buying an e-book or dead tree book on wholesaling which would make learning a lot faster and more indepth than online videos.

@Brook Azezew I think BMO Harris Bank offers an investment property loan to Canadian citizens. They have a branch in Tampa. Try giving them a call.

@Kenneth McCeader welcome to the Bigger Pockets community. I wish you the best of luck on your REI journey.

I can refer you to a local money lender if you wish. Feel free to private message me and let me know what kind of loan you need (the purpose).