All Forum Posts by: Crencenthia Brown

hello everyone,so I came across a house that I think I can do. I'm not sure how to start. The house is located in Durham NC about 3 blocks form where I'm living form. The area is really changing, lots of fixs up and selling. the seller is asking 95,0000. But I know it can go for much less then that. the house needs lots of work. My question what are the steps I need to take? I KNOW ITS ALL ABOUT THE numbers. getting contactor to go with to look at the house with,for he can give me The cost? Then give the HELP ME PLEASE and THANK YOU the house has been empty for years now.

Hello,

Step one in flipping is always learning how to read your market. In other words, you need to learn how to understand what values properties carry in the various neighborhoods around you. The fact that you feel the area is changing is a good sign, but what really matters is what a property can sell for, and in what condition the property was in while it sold. Knowing that will allow you to review the subject property to assess its condition in the market and what updates are appropriate for re-sale.

Before you even start down that road, perhaps you ought to do a trial run or two, or at least perhaps consider finding a mentor to shadow. Mentors can be found in a BiggerPockets meetup or a Real Estate Investors Association meeting in your area. Good luck.

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Originally posted by @Micheal Patterson:

@Crencenthia Brown

No problem, yea not sure why others are saying that. If she has an opportunity to put no money down then more power to her especially if she plans on investing in other properties.

Thank you, she's going over things now with her realtor. As of now her closing date is March 20. You know things can change. Thank you for your time..

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Originally posted by @Glidden Rivera:

@Crencenthia Brown

Get 6% concession s from the seller.

Keep one thing in mind, the VA will assess a funding fee ( mine was 14k)

They roll it into the loan. I didn’t know this until I was ready to close.

FHA is very good too, you may not get the same interest as the VA loan, but it's pretty close.

But If basic closing cost are a barrier then the additional 3% down payment required by FHA would probably be a burden as well. With the VA

You can fund a 100% of the loan.

Lean on the seller for concessions, you will need to negotiate that with the seller. In most cases, you will add 6% to price of the home and receive the credit towards closing.

Ex: purchase price 100k

Add 6% to acquisition

New purchase price is 106k. 6k is credited towards closing.

You can try to negotiate that the seller contribute a portion of it so you don’t have add 6% to the acquisition ( may be 3% and the owner comes down by 3%)

You still get the max concession (6%)

Thank you.. you and someone else said almost the samething. The owner did agree to help with closing and the realtor also some other program as well. Now about that 14% you told me about I'm going to ask about that as well. Thank you so much for answering my question.

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Originally posted by @Stephanie Medellin:

@Crencenthia Brown You shouldn't need to find any special program to help with closing costs, just have her real estate agent structure the offer with the seller paying her closing costs.

Thank you, I was just being over protected mother. I do apologize I wasn't clear enough on this post at all. The realtor did say he knows of a few programs. I wanted to do some looking for myself,being that mom. But everything worked out perfectly. She's closing in 20 to 30 days. Thank you again for giving me that advice.

1 Vote

Originally posted by @Andrew Postell:

@Crencenthia Brown you have some pointers above....some correct and some not so correct....but my main point here is - why isn't your lender suggesting these things to you?

There should be local, downpayment assistance programs (some call them "first time homebuyer" programs....but most don't require you to be buying your first home) that can help with and even pay ALL closing costs.
The lender can "premium price" the loan. Meaning, they can actually trade a little bit of the interest rate for paying for your daughter's closing costs.
The seller can contribute up to 4% of the loan amount to help pay for closing costs. That is the VA limit but that should a pretty considerable amount.
And you can even use a combination of these items to make sure you need $0 for closing costs.

Now, even if she needs $0 for closing costs.....she will still need about $2,000 just to get her offer accepted - Earnest Money, Option Money, Inspection Money, etc.

My main point here is....if your LENDER has not already shared this information with you and your daughter - then you need to find a different lender. These are HUGE red flags for me. A very entry level, low experience person should know that information above and should have been able to advise her already on those options. VA Loans are harder to close from the lending side than other loans. If your current lender doesn't know that basic information above then you will be in for a rough ride using them.

Thank you so so much. Please forgive I didn't make my post clear enough. He did say he was aware of few programs. But I wanted to make sure we didn't leave any thing unturn. So about 2hours ago. Everything worked out for the best. Just as you said she will need about 2000. The seller is willing to pay some of the closing costs and there's a another program as well. So she not really coming out of pocket. Also the 2thousand she paying out,shes getting it back through the VA. She's closing In 30 days. Thank you again so much for your response.

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Originally posted by @Micheal Patterson:

@Crencenthia Brown

Your daughter can roll her closing costs into the loan and have absolutely zero money down. I have purchased 2 homes now with a VA loan and put zero money down. Hope this helps.

Yes! It does help a lot. I will make sure to pass this information on. I'm not understanding why others are saying if she can't afford closing costs she shouldn't buy a house and she should learn how to.save. my daughter served 6 yrs in the Army and let me say this girl saved most of her tax's return and each time she was paid she had money coming out of her check. Her credit score is better than mines. She almost in the high 700 almost 800. Even though she was pre qualified for over 200000 she staying low nothing higher then 180 but she said 175 is much better. Without me even saying anything. Even the loan company was surprised on her score and her savings. Again thank you for answering my question.

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Originally posted by @John Teachout:

I understand the desire for home ownership and VA loans can help with that. However, echoing others, I think she needs to save up some funds before moving on this. What happens when the furnace goes out a month after purchase? If she can't even afford the relatively small VA loan closing costs, she's not financially ready for owning a home.

Ok, maybe I didn't explain well enough. Let me try it this way. The realtor said the closing costs can be as high 6500. She was pre qualify for over 200000, she not going that high. Because she want to keep her mortgage payments below 1000. My daughter was in the army for almost 6 yrs and saved better than I ever could have done. I asked this question because a few people told her about programs that my be able to help with the closing costs. Her realtor did say he's going to look into something things to help her save some money. That she can use for moving cost. Also the loan bank wanted her to show at least 3 to 6 months of savings. But why if someone want help with closing costs, means that they can't or shouldn't but a home. If that the case way are there programs to help with it? Maybe I didn't word my question right or something. Also what is little closing cost to you? Thank you again

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Originally posted by @John Teachout:

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All Forum Posts by: Crencenthia Brown

Crencenthia Brown has started 6 posts and replied 32 times.

Post: Wholesale lawyer Durham/Raleigh NC

Post: getting my !st house to fix and sell

Post: getting my !st house to fix and sell

Post: Daughter buying her 1st home w/ VA need help with closing cost

Post: Daughter buying her 1st home w/ VA need help with closing cost

Post: Daughter buying her 1st home w/ VA need help with closing cost

Post: Daughter buying her 1st home w/ VA need help with closing cost

Post: Daughter buying her 1st home w/ VA need help with closing cost

Post: Daughter buying her 1st home w/ VA need help with closing cost

Post: Daughter buying her 1st home w/ VA need help with closing cost