First Time Investing In

[Reh N.]

(SORRY IN ADVANCE FOR WRITING SO MUCH. THIS IS MY FIRST TIME IN REAL ESTATE) 

Hi, So I am looking into purchasing a property for the first time. Here are a few things to consider prior to forming an answer. 

-It is a single-family however, Land Use stated can be used as a 2 family. This is no issue as I already had plans to factor in the cost of transitions from a single-family to two. 

- The property was purchased via auction. the auction hasn't been approved yet. the property was purchased through someone else because I don't have cash in that amount laying around. This person has enough cash so I asked him to purchase it so I can get it through a conventional loan. I do plan on compensating them for this transaction. I would have enough money for a down payment based on the price I'm thinking of inclusive to his fee on top. (he's a family friend). 

Question 1) Would the property be approved during current conditions? Reserve hasn't been met but we were the highest bidder and it has ended. I'm assuming during these tough times I don't believe banks would still manage to be greedy at this moment. but who knows

Question 2) When scoping out the property, I noticed on the website it had the tag "SPECIAL SERVICING CONDITIONS APPLY" I did check bigger pockets but I don't think I understand can someone please explain this? I've Also read Special Servicing Conditions Properties get a response longer than usual. Anybody has dealt and can let me know how long this process might've taken you? 

Question 3) The Reserve hasn't been met does this make it highly unlikely I would not be awarded the property? 

Question 4) the Property has over 60k in fines however they were because it defaulted. any idea on whether or not I can reopen? getting a loan on this would be out of the question as they don't typically approve loans with houses with fines. I would be working closely to resolve them prior to applying for a loan. It was also over something silly that should've been dealt with but I guess not. can I get this reopened, correct the hazard, and have them adjust the penalty? 

Question 5) As some might question the conventional method, please be mindful I'm in college, and much younger than an average investor. I'm not sure what the condition is from inside because they did not allow access and the majority of auctions do not let you enter to scope the property. I'm hoping the property is in a condition where the appraiser or whoever comes to inspect the property will approve for a loan. If it is not, I'm hoping to spend a little money to get it to the bare minimum approval condition. Based on your experience purchasing REOs do you think the property will be in an OK condition to the point where ill get approved? yes I know it's difficult but based on what you've dealt with.. 

Question 6) how much do you think I should pay him for his services? I do not want to be greedy because he doesn't have to do this for me as this is my stepping stone and will potentially set me up for life. 

- Property is purchased at 520,000 for example, value is 720,000 currently through comps. it is in terrible condition im assuming due to the exterior work. after reno and transitions, I believe it would be valued at 850k-900k easy generating $3,000+. I was thinking of anything from 600k-650k hopefully. 

and for a final question, How would you approach this situation knowing these conditions? 

all input would be greatly appreciated.