All Forum Posts by: Joseph Rice

Hello George,

I would approach it from this angle.... if the property looks good, and is well maintained inside, but you could freshen the outside up; I would sell it with the tenant in it with a new 12 month lease.

If the property needs an extensive amount of work inside and out then I would empty the property fix it and then sell. With that being said after it is fixed I would try to have it rented as your selling it. Your chances of someone buying it is 100 % better if it is cash flowing opposed to vacant & them trying to fill the vacancy once they purchase said property. Hope that helps

Best Regards,

Joseph A. Rice 

Pat,

In my experience with 203K I would recommend doing the following. I have a partner that one of us will purchase the property under the 203K. My partner has his GC license that is not in my name at all. We purchase the property under my name, and register his company for the GC. This allows us to rehab all of our projects at our cost. You can get your GC license but I believe that doing so will raise some red flags with the FHA. They always ask me if I am going to do the work I reply no, and then they ask me if I have any ownership of the GC company and again I reply no.

As to your second question, yes you can refi your current mortgage into a 203K streamline. This is a alternate option from home equity loan. Or if your property is deeply distressed, and in need more then 35K then you have the option to do the full 203K. Typically these loans will have higher interest rates so shop around. Hope That Helps  

Welcome Josh,

I work in Newark often, and you are in a good area to get started. If I can offer any help please let me know.

Joe R.

Steven,

Wow that is funny!!! You do know that you could buy that house with the 203K loan, and tear the house down to the foundation to build a 3-2 ranch on it for probably 65K. If I were you I would look into that. I'm not sure of the ARV in your market, or your rent on a 3-2; but the 203k doesn't work for new construction aka new foundation. However it does work for existing foundation. Could cash flow very well, or be a good profit on a flip.

Hello Herve,

To my knowledge you will not find a conventional lender to refi a property after only two months. Being that it is a rental they will want to see the tents are in a lease & paying to take the chance on the refi. You may be able to find a portfolio lender, but they are still looking for some type of stable payment history. Good luck

Hello BP Community,

I have a client who lives in Turkey, that would like to invest with with my company. Does anyone have experience with foreign investor structure? This will be my first client that resides outside of the US, and I want to make sure the partnership is structured legally for both parties involved. Any help would be greatly appreciated. Thank you everyone.