FHA or 203k Loan

[Justin Louie]

Hi all,

First, just a little background. If you want to see my question, skip to the end of this post. 

I have been continuing to learn thanks to BP: the podcasts are amazing and the content is so insightful.

Lately, I have had a bit more time to really sift through some personal issues and realized really that my real estate hopes and dreams have been nothing more than that...hopes and dreams. I am working to make a commitment to this thing and I know I'm moving in the right direction as slow as it may be.

I have taken a bit more action and have reached out to many agents and mortgage brokers in my area. Some of of previous posts explained my interests and plans, and I had decided that trying to house-hack a small multi-family to be my ideal first step to make my first purchase both a primary residence and investment property. A few things: In my area, the market is extremely hot and I'm seeing multiple bids on properties with closing way above asking price (with many all cash offers and few contingencies). I haven't found anything yet that seems reasonable for my situation. FHA or 203k would be wonderful given I find the right property.

My question: Most of the agents/mortgage brokers in my area that I've spoken with almost write me off because of my situation. I've tried to have them level with me and I think the gist of it is that because I am going to need an FHA or 203k, they don't want to work with me because the hopes of getting that offer accepted are little to none. Why would a seller take the buyer who doesn't want to give up contingencies and has to get 95%+ financing when they can turn around and accept an all cash offer? What would be the best next action? Continue to network until I find someone to work with me? Am I being too naive in the current market conditions? Maybe it's best to sit on the sidelines and wait to get in?

[Nathan Turner]

Hey Justin! Glad to hear you are motoring ahead despite the struggles. I can 100% relate to everything you said. The same is happening in Columbus, OH where I am actively investing. I had a very similar situation with a duplex here and also am noticing properties going well beyond what I am comfortable offering. However, like you said, "On to the next one!" That's just how it's going right now but as long as you stay focused and on point you are destined to succeed! Keep it up man!