Lender · Sacramento, CA · Member since 2013 · 84 posts · 10 votes
In looking around on BP paying cash is a great way to find deals, but I'll be sticking with conventional financing for my first property until I can save up enough or find a partner.
Doing a bit of research I'm finding that not having a ton of cash I can go with:
-Retail/MLS
-HUD
-REO
-Craigslist sellers
-Landlords or out of state landlords who are ok accepting offers other than cash
-Possible wholesalers who will work with conventional financing
Just looking for other ideas for those who have completed deals with conventional financing. A lot of what I read is solving other people's problems by getting them cash and you a property but conventional financing doesn't allow a quick enough sale.
Real Estate Broker · Orange, CA · Member since 2008 · 380 posts · 87 votes
12y
Conventional financing is great the problem comes in when buying the fixers. There can be no health and safety issues, if the appraiser notes issues or issues show up in photo graphs underwriters will condition for repairs to be done prior to funding. Examples are:
green water in pool
bars on windows
no flooring
no heat source
evidence of leaks
mold
dry-rot or evidence of termites
falling down fences
missing doors
holes in walls
water stains on ceilings (requires roof cert)
there's more...
These are what a underwriter put as conditions on a conventional 4 unit approval I received today.
9. Termite Clearance. Section 1 items to be cleared and any Section 2 items that may be a health and safety issue are also to be cleared, otherwise property is ineligible for financing.
and...
10. 1004D: WATER HEATER DOUBLE STRAPPED IN UNIT C/AIR CONDITIONER FASTENED IN WINDOW IN UNTI C OR REMOVE AS WINDOW DOES NOT CLOSE / FLOORING INSTALLED IN BEDROOM IN UNIT C, MOLD REPAIRED IN UNIT D.
Lender · Plano, TX · Member since 2013 · 312 posts · 71 votes
12y
Jeremy, I do conventional financing for investors and I can close in less than 30 days. That should be plenty of time for you to do your due diligence. I am licensed in Texas, however if you want a good loan officer, my Uncle lends all over the country and can help you out. Let me know!