All Forum Posts by: Mark Cios

@Wayne Brooks thanks, I think I need to find another agent. She told me she doesn’t know and I should ask my loan officer...😡

I’m currently looking for an investment property to either fix and flip or possibly brrrr. It is a Fannie may homepath property that just came on the market. It is completely gutted and has been sprayed white down to the studs(there was a fire at some point and was abated) My understanding was that Fannie may properties were for first time home buyers or low income households to be able to afford a home. This house would require a complete renovation and I would be looking to come in with a hard money loan offer. We are a well off young couple that has fixed and flipped our first home and are living in a 350k house and make about 140k combined(not gloating just trying to give you an idea of our economic status). Are we eligible to put in an offer on the house and if so are there any restrictions such as having to live there for a certain period of time? My understanding was that these properties were posted for the people that truly needed it for the first 30 days and then became open to the public if they didn’t sell. Am I wasting my time looking at this home?

following

@Blake Hrabal haha was considering telling you to maybe take a step back and possible some accounting 101 classes. Had a feeling you were just having a brain fart though. To your other question, absolutely. If someone inherited their grandfathers house I needed to get rid of it that hour hah. I’m sure a deal like this is possible although very rare and you would need to know the right people. My numbers were for simplicity. Didn’t want to throw you off more with a sale price of like $166,573.83.

Say you start with $50,000 and want to purchase a $100,000 house.

                                        Expense           Profit               

Loan Amount                       $80,000                      

Downpayment                      $20,000

Renovation                          $25,000                               

Holding Costs                      $5,000                                 

Sale Price                                                   $200,000

Total Profit                                                 $70,000

You sold the home for $200k, this pays the bank back the $80,000, pays you back the $20,000 downpayment that you invested, pays you back the $25,000 for renovations that you invested, covers the holding costs $5,000 that you invested and your left with $70,000 in profit. *Note* you already recovered your initial  investment of $50,000. You would be left with $130,000 in the bank now vs. the $50,000 your started out with.

Have you thought about looking into any 4 flats? You can get an FHA loan on it with 3.5% down and the additional rents would more than likely cover your entire mortgage plus give you a positive cashflow. Most importantly, your capital remains liquid so you can keep searching and finance another property shortly after. My biggest regret to date is not taking advantage of an FHA on a multi unit as my first property. Now I have a wife, kid and big dog which makes it impossible to convince my better half to move into an apartment building lol.

Anybody here yet? Where are you guys sitting?

@David Flores thanks. I will look up your videos and put together some questions. This property is a real one, but I’m posing a hypothetical question to financing it. I missed out on a steal of a deal two weeks ago on another property due to a higher offer. That owner told me he’s got a few others he’s selling because he’s retiring so I know he’s got properties and money since he just sold that property. A light bulb clicked that maybe there can be something done in this instance where we both win. I guess my biggest question right now would be why would someone owner finance when they can just keep the building and collect money?

@Bill Brandt I haven’t seen the property but know what rents go for and know it works. I guess I was more so looking to see if there was a way to keep my money for say another deal. Again, this was under the assumption that the seller had any funds to do this. Was just something that popped into my mind and wanted to see if something like that had been done or not.

A 4 flat near me is selling for $240,000. This is unfortunately just outside my capabilities of a down payment as my lending is requiring a 25% DP. At $200,000 I think i can make it work and I think the seller would budge to that as its been for sale for over 200 days and he purchased it for 88k in 2012. I then quickly thought, what if I could get the seller to put down most of my down payment for me. Would this be essentially a seller credit? Would I still need to have the funds for the total deal on my end and then recoup them in the form of seller credits after the transfer of the property? I would offer him maybe $250k in exchange for say $35k down payment assistance/seller credit (whatever the correct term may be). Am I far off from what I am trying to think of and what issues can you foresee. I would not have enough to proceed with a down payment for $250k so that is why I am hoping seller credit can be applied to my loan.