All Forum Posts by: Dylon May

I really appreciate the help and insight guys. 

Thanks for the links, and I will be contacting my county public records offices for more info on this property. I have been considering getting an agent, however the property manager, which also is the principal manager, because they own and manage the property, expressed to me how she does not want to get an agent involved. This is something that she offered. 

We also spoke about FHA financing and she even had a lender reach out to me to start the pre approval process. I provided my name address SSN dob and salary to the lender on yesterday. Traditional bank financing is my preferred method of financing due to the low down payment requirement and other first time buyer incentives. I would gladly receive your bank referrals, Steven.

Yea, right now, all communication is going through the PM, so I assume it is a FSBO deal. I actually reached out to them and asked if they'd be willing to sell me the property, and they were in favor of my inquisition. I've been in contact with 2 realtors just in case, but based off info here and from others, I am leaning toward getting a buyers agent. What if the PM clearly states that she doesn't want any agents involved? Can sellers do that? Is it possible for me to get this done without a realtor and still "come out on top"?

I now have the opportunity to purchase the home that my family and I currently live in. The property manager is also willing to do a seller finance deal. I'm not sure how that works, so can you fill me in on what that means, and what that entails especially now in this economy? Would that be a good idea to do seller financing?

What would be my next step? She's already given me a sales price, however she did say that they are willing to negotiate down. Where would I go to look up comparables in my neighborhood without having access to what real estate agents have access to? We will not get a real estate agent involved, because we want to keep money in our pockets. 

I really need a step-by-step guide on where I should go from here. I am a newbie investor, and a newbie home buyer, and I do not want these people taking advantage of my family and I with our first purchase. Let me know your thoughts! 

I have been laser focused on how to get my foot in the door (strategy), and I think it will be by purchasing an SFH, and living in it for one year, then renting it out. I want to take advantage of all of the down payment assistance programs, and also looking into an FHA loan. To me, the FHA loan gives me a better chance at home ownership because of its low down payment, and it's no reserve requirement, in addition to 1st time home buyer perks.

If an FHA loan has a down payment of only 3.5%, how do lenders combine that with down payment assistance programs? I've done some research for the state of North Carolina and see that there is a total amount up to $8,000 for down payment assistance through NCFHA. This is fully forgivable after 15 years of the loan, starting at year 11 and decreasing every year by 20%, but as far as the numbers, how does it work? For example, if the sales price on a home was $100,000 and my down payment was $3,500, is it safe to say for first time home buyers that I could get an additional $8,000 of assistance which would ultimately drop my loan amount to $88,500?? Am I understanding this correctly?

I am basically trying to reverse engineer and figure out what my maximum allowable purchase price should be for an SFH if I had, let's say, $10k for a down payment. This brings me to another question: with an FHA loan, are 1st time home buyers allowed to put more than three and a half percent down? My answer is yes, but you guys are the experts.

Let me know your thoughts.

I have been laser focused on how to get my foot in the door (strategy), and I think it will be by purchasing an SFH, and living in it for one year, then renting it out. I want to take advantage of all of the down payment assistance programs, and also looking into an FHA loan. To me, the FHA loan gives me a better chance at home ownership because of its low down payment, and it's no reserve requirement, in addition to 1st time home buyer perks.

If an FHA loan has a down payment of only 3.5%, how do lenders combine that with down payment assistance programs? I've done some research for the state of North Carolina and see that there is a total amount up to $8,000 for down payment assistance through NCFHA. This is fully forgivable after 15 years of the loan, starting at year 11 and decreasing every year by 20%, but as far as the numbers, how does it work? For example, if the sales price on a home was $100,000 and my down payment was $3,500, is it safe to say for first time home buyers that I could get an additional $8,000 of assistance which would ultimately drop my loan amount to $88,500?? Am I understanding this correctly?

I am basically trying to reverse engineer and figure out what my maximum allowable purchase price should be for an SFH if I had, let's say, $10k for a down payment. This brings me to another question: with an FHA loan, are 1st time home buyers allowed to put more than three and a half percent down? My answer is yes, but you guys are the experts.

Let me know your thoughts. 

Hey John,

I have mentioned it to my wife, but I suggested to her that she should be the one to bring her family together to open that conversation to buy it from the bank, or buy it directly from her parents. There are a lot of moving parts here and a short sale is an option, however, the market value on the home is higher than what is owed. Here, the past due balance is what is causing this issue, not market value compared to total balance remaining in the mortgage. What happens in this situation? 

Also, I spoke with an agent yesterday and she advise that in NC, related parties are prohibited from short sales on properties where the prospective buyer has relations with the seller. How do investors get around that? How would you get around that? What's that process look like? 

If I were to reach out to the bank, how could I get that conversation going? Wouldn't my mother in law have to agree for me to at least talk to the bank, so they can provide details? That's another daunting task...getting her to understand that I need to know her personal information about her financial situation when it comes to the house, so we're able to strategize and move forward. 

Thats why I like what you said Chris, because if I get major pushback over time just from the thought or idea, then it would be best to not worry about it. But then the house will go to someone else. How would I be able to express, or articulate that that could happen? It's hard for me to believe, or hard for me to understand why my in-laws would not want to seek alternate options to keep this house regardless of pride level or embarrassment level.

So, basically, my wife's childhood home is in a state in which I cannot explain. I know for a fact that it has been through the pre-foreclosure process at least three times, and I know that my mother-in-law reaches out to companies to help her with foreclosure proceedings. I really do not know, because they do not share that information with me. My wife tends to do her paperwork for her mom and I sometimes find documents around the house regarding bankruptcies, foreclosures, and personal information that my mother-in-law sends to other companies to help her.

Before my real estate investing adventure I told my wife that I would love to buy her childhood home. It sits in a great place, great neighborhood, and this home was the first built there. I know firsthand exactly what needs to be done to the house, and I know firsthand what has been done to the house as far as renovations.  The bank WANTS this house back, but I want to buy it. I expressed to my wife that I would rather keep this home in the family than let the bank take it back and sell it to somebody else to make a profit off of it when we can do the same thing and keep the income in the family.

My question is, where do I begin, what should I be looking for? Who should I be reaching out to and what types of questions should I be asking? I want to buy this house, and maybe rent it out after we have satisfied the owner occupant requirement.

Tell me, what should I do? What do I need to do to make sure that I'm in a better position to purchase this home and keep it inside my family?

Hello BiggerPockets Family!

I am a newbie to real estate investing, and very excited about starting a New chapter of life that will afford me passive income, and will allow me to truly achieve financial freedom! I am 30 years old, married with 2 children, 1 on the way, and work for an international bank full-time as a business analyst. My wife is a registered nurse who works in coordination of care at our hospital here, and is about to take her leave.

Currently, we rent a SFH in Fayetteville, North Carolina (Fort Bragg) in a great neighborhood. I am originally from Charlotte, and based on the research that I've been doing for the last month, MFU's is where I should start. I'm not sure in which market should I start looking for deals, so that is where I need a bit of assistance. What are your thoughts? Fayetteville, Charlotte, or Raleigh to start?

We want to be able to find another SFH and live in it for a year then rent it out. The other option that we are considering is finding an MFU, living in it for a year while simultaneously renting out units. After the year is up the entire MFU you will be tenant-occupied. Based on your experience and knowledge, which would be the most efficient option for newbie investors considering our situation, and family size?

Lastly, what are the best options for securing capital outside of using our own funds? I want to jump in as soon as I can, however I don’t think I can afford to wait until I have an estimated down payment, closing costs, or any other related expenses. How would I be able to articulate to someone with access to capital that there may be an opportunity for passive income if I came across a good “deal?” 

Any insight would be greatly appreciated. Thank you