All Forum Posts by: Jeremy Basiger

Hey Guys,

I need some advice please. I mentioned before that I was trying to make an offer on a REO property. Well after telling my realtor that if she would not make the offer I would find a realtor who would she ended up submitting my offer of 32,500 with contingencies upon me providing proof of funds in my LLC name(within 72 hours) and on completions of inspections. After 6 days the bank countered, they said that 32,500 was fine but no inspections. Now, since the property is an REO I know they don't expect to negotiate down on the price after review of the inspections, however It worries me a little that they will not allow me to have inspections conducted just to ensure that the septic and foundation are fine. It is at no extra cost to them and it would be within the timeframe that I gave for my verification of funds.

So my question to the community is this; since I will not be able to conduct an inspection, do you think that submitting a new offer and dropping the price to around 30k and saying ok to no inspections is the correct route to go? 

Thanks in advance BP

Info to the property numbers can be found on my post linked below.

https://www.biggerpockets.com/forums/88/topics/379...

@Brandon L. Thank you for the input, I am continuing to work with her and we will figure out how to make it work. 

I appreciate all the input you guys have provided immensely and through all of this I just keep in mind the phrase "if it wasn't difficult, it wouldn't be worth it".

@Brandon L. are you saying that the POF is simply something the realtor wants to see before submitting an offer?

@Wayne Brooks Since an assignment is not an option what about making my investor a silent partner to my already formed llc? This would show a bank statement that would back up the fact that the llc had access to the funds and therefore, could make an offer on the property?

Justin Stanfield that's great, there's a lot more into making shingles than most would imagine. No discount though unfortunately, i didn't even get a worthwhile discount this past summer when I re-roofed my house.

@Account Closed since the POF is from my investor but I am the one who will ultimately be purchasing the property since my investor is located in CA, is it reasonable to submit the offer in his name and then have a memorandum drafted up transferring the right to purchase the property from him to me?

Thanks for the help guys, I know these REOs are always going to be a pain in one way or another but learning from these mistakes and transnational errors will only help streamline these deals in the future!

Originally posted by @Justin Stanfield:

Wow GAF....

 Is there an issue with my company?

I have found a REO property that I am looking at purchasing. I have an investor lined up and we both agree that making an offer is the next move. I have approached a real estate agent to submit our contingent offer on our behalf. I was then told that we needed proof of funds. My investor travels a lot and was able to (on short notice) text me a picture of an overview of his bank account showing that he had more than the necessary funds to purchase the property. My real estate agent says that this isn't enough, that it must be on a bank letterhead and that the offer has to be in the name of the account holder. Is this true? From the blogs and books Iv read it always sounds like the purchaser can be myself. As my investor is a close friend and we have already negotiated terms should there be some type of form between the two of us that would allow me to act on his behalf? Of course when I asked my realtor if she has worked with investors in the past she agreed that she has had man transactions dealing directly with an investor, not with the middleman, in this case me. Any advice would be greatly appreciated as I feel we are not being taken seriously in this endeavor.

@Brent Coombs, come to think of it I believe that he has never actually used his VA loan. I know his history with our family home and it was not a VA loan. It may be good to keep him out if it, it is more or less something him and I have chit-chatted about.

Basically with my house, I bought it 4 years ago as my first home, paid 100k for it, put a considerable amount of work in upgrades to it, boosted the property value to 135k, refinanced after a divorce in order to pull equity from it, gave the ex half the equity money, paid down my vehicle and paid off all other debt. So currently I owe 130 on a 135k house. As this was my fist VA loan I still have my second tier of entitlement + a little extra remaining from my first tier which would allow me to borrow up to 282k for a single purchase as long as I am owner occupant and its not over a fourplex I believe.

I have considered this for house hacking but am unsure if I should use the VA before using her first time home buyer credit. I think using her first time credit would be better but am unsure. Thoughts?

I am trying to find a creative way to fund my first investment property. This quest has led me to a few questions that I can not seem to find answers too. 

First the back story.

I am a veteran, I bought my first house as a VA loan and currently I am just under break even on the property. I have about 15k to invest. My father is a disabled veteran who had filed for bankruptcy about 8 years ago. His credit is around 560 and his bills are minimal, he is also a handyman by trade and still does jobs here and there. He currently rents.

After looking into FHA loans. I see that a credit score under 580 requires a 10% down payment for the purchase. Along with this the MIP and the Annual premium which depends on the equity/length on loan. Now I know that renovations can be included if the loan is a 203k style loan and all work is done by licensed approved contractors.

With all this said, here is what I would like to do.

Find a property well below ARV, I sign as a non-occupant co-borrower on the property (also putting the 10% down and any other fees associated with the transaction) in order for my father to live there after rehab work is done. He would live there until the property can be refinanced. Ultimately I would like to remove his name from the property and assume control of it. In turn we would then try to rinse and repeat.

So essentially he would put his name on the loan and become the occupant staying there until we could refi and rent it out. The entire time I would pay the mortgage/insurance/taxes either directly or by transferring him the money to pay it.

Does anyone know if it is possible to have a name taken off a deed when doing a refi on a FHA loan?

I am also looking for any ideas that my fiance and myself would be able to creatively do before getting married. She has good credit, not bought a house and currently lives with me. We both agree that we would like to take advantage of these facts before we get married, we just do not know the best way.

Thanks everyone and Happy Holidays!