All Forum Posts by: Paul B.

You know, normally when I hear stories about someone trying to stick it to the bank, it's just another person in a long line of deadbeats who are trying to get out of paying their bills.

Looks like this time I can actually behind the protagonist here. Well bowled!

I was looking for a summer rental when I stumbled onto this beauty:

http://www.paradise-coast.com/vacation-rentals/DOME

I'm pretty sure my wife is going to nix this one, though.

This all foots with my thoughts on the subject. It got me thinking, though, because the listing agent was so negative sounding about the place. She's the one who planted the seed in my head about, "And of course, you're going to have to disclose all the work once you get it done..."

(To which I thought, "So what?")

Maybe she has another client/friend who has an eye on the property, or maybe (no disrespect intended here) she's like the majority of Realtors who know little about really "selling" a house (beyond slapping it on MLS) and even less about investing profitably in real estate.

Thank you, all.

Assuming that I was hamstrung by not having any income with which to secure financing from traditional sources, I would probably try to develop a few private lender relationships and use the $100K as my down payment on a combination of flips and long-term rentals.

This will be work that is not visible to any buyer upon completion.

I do not have the particulars on precisely what is needed; I am going to the house tomorrow for a better look.

Someone whose opinion I trust -- and who has seen the house -- said I should prepare myself to spend $30K to $40K making this right.

Assuming that I feel comfortable that $40K is the cap, the house should be a slam-dunk. It's a 4/3 here in Alpharetta which I hope to get for $60K. When completely remodeled, it should sell for $220K extremely fast. I could probably price it at $249K if I wanted to wring out every penny. In fact, that is probably where I'd price it as it's just under the psychologically important $250K mark.

So, assuming $40K for the foundation work, then another $60K (tops) to renovate (that number is a work in progress), I would hope to have no more than $160K in a house that should sell *very* quickly for $220K net of closing help and other seller concessions.

These numbers are still very fluid, however.

$100K and 6 months without spousal or paternal obligations?

You'd find me at the Venetian's poker room...

You don't even need to pretend about the source of the money, then. All your father needs to do is write a letter explaining that the money is a gift. No 60-day waiting period required.

I know this is how it is for owner-occupied loans; I suppose there is a chance that it's different for investor-owned properties.

Your real estate agent and/or mortgage lender should be able to clarify further, if necessary.

If you don't need to borrow, then your credit is irrelevant (setting aside that some insurers might run your credit when quoting your premium).

However, most people who have that kind of cash just inherently have good credit.

If you're not planning on living in one of the units, then yes, you're likely to need 25% down unless this is a FNMA property that qualifies for Homepath financing, in which case you could put down only 10%.

Now, as to that 25%, it's not supposed to be borrowed funds. You're supposed to have 25% equity in the property, and equity that comes from borrowed money is not really "equity" in the spirit intended.

So, your lender is suggesting that you have this money in your account for at least 60 days so that it will not be obvious that the money just "magically" appeared when you applied for the loan. That would be a clear sign that this was a loan from a third party.

I agree with Brandon, and the first sentence of your post is technically incorrect since you didn't find a buyer.

"Thems the breaks." On to the next deal!