All Forum Posts by: Kyle Gregg

Ive done research regarding the 203k loan and all ive read is that "the 203k loan prohibits sweat equity"...what are the limits to whats considered "sweat equity"? 

Research states that if i want to put in some sweat equity, i must be licensed. Does this only relate to work requiring a licence? 

I want to be able to get a 203k loan and do some of the work myself. work like flooring, tiling, painting, any finish carpentry, possibly drywall work, bathroom/kitchen cabinets, etc...These tasks do not require a license to perform.

Is this something i will have to work out with the selected contractor? Will all of the funds (labor & materials) of a 203k loan goes directly to the contractor? If all the money is going directly to the contractor, what is motivating him to complete the work on time?

Any insight on "sweat equity" and paying contractors using the 203k loan will be appreciated. 

I am located in Baltimore City and looking to buy and hold my first multi-family property. Any contacts or companies in this area that i should look into?

Thank you. 

@Cole A. 

Appreciate the response. FHA or the 203k loan seems to be the easiest route to go for my first property. where would be a good place to talk to someone about possible loan financing?

@Rumen Mladenov 

great advice on the 2% seller assistance. thank you.

@Jon Holdman  (excuse my first timer mistake) 

@Jon Holdman

thank you for your reply. Is getting a seller to agree to cover closing costs a regular occurrence? I feel the seller would have to be desperate to dish out cash to sell their home. can you lend some further insight?

is there a way to locate properties where sellers are offering owner carried mortgages? how did you find that deal?

thanks again.

Hello everyone at BP! First time poster with big dreams of real estate investing. 

BACKGROUND:

Ive been doing research for the past 6 months and finally starting to put together a strategy to go after my niche...but first, a little about me

25 years old, full time mechanical engineer, currently renting at $1050/mo, have 35k in student loans, and 25k truck payment. credit score in the 680-700s. not much in savings but starting to save heavily. 

I have realized that i want my life to be more than a career at a desk. Ive been a hands-on person my entire life and im very motivated to use my skills in a way to make money.

So far, i have decided that i want to buy a house that is already set up for a 2-3 units. I want to live in one of the units. idealy, id like to have a mortgage that i could afford with no units rented and more than pay for the mortgage when fully rented. I have looked in my area for potential properties and i need help with figuring out the right course of action to finance my dream. i have researched the 203k and FHA loans.

There are foreclosures in my area ranging from 20k-50k needing full rehab. Also properties in the 100-150k needing upgrades.

MY QUESTIONS: 

What financial route would best suit my situation? 

What condition property would be ideal with a given loan?

How much sweat equity can be done with a given loan? i read everywhere that the 203k loans do not allow sweat equity but i want to be able to lay flooring, install cabinets, finish carpentry..etc

i have a million other questions but this is a good start. thanks for reading if you bothered to get this far in my post!