All Forum Posts by: Griffin Pratt

Hey I'd love to hear more about BP featured agent program/leads!

@Russell Brazil - At this point, I intend to proceed with the purchase using the FHA loan. My question is, in the event that the home fails FHA inspection or I decide not to proceed due to more repairs than anticipated, can I assign the contract to another investor -- prior to close -- who is not using an FHA (likely a cash buyer)?

@Norberto Villanueva & @Eliott Elias - At this point, I intend to proceed with the purchase using the FHA loan. My question is, in the event that the home fails inspection or I decide not to proceed due to more repairs than anticipated, can I assign the contract to another investor -- prior to close -- who is not using an FHA (likely a cash buyer)?

Hey BP community,

I have a question regarding potential issues with wholesaling on the back of an FHA loan. I am currently negotiating with a seller after sending my written offer (using FAR/BAR As-Is contract). The initial contract I wrote up included an assignability clause and the only counter by the seller is that I provide a pre-approval/POF before they accept my offer.

Since I am preapproved for the purchase price via FHA loan, my question is there any reason I would not be able to wholesale the contract if the home did not meet the FHA requirements or if I decided I did not like something about the deal? Does anyone see any issues with this?

**(I am both the agent and interested party in this scenario. All necessary disclosures in that regard have been made both verbally and within the contract.)**

Happy New Year!

Griffin

Hey BP community,

I have a question regarding potential issues with wholesaling on the back of an FHA loan. I am currently negotiating with a seller after sending my written offer (using FAR/BAR As-Is contract). The initial contract I wrote up included an assignability clause and the only counter by the seller is that I provide a pre-approval/POF before they accept my offer.

Since I am preapproved for the purchase price via FHA loan, my question is there any reason I would not be able to wholesale the contract if the home did not meet the FHA requirements or if I decided I did not like something about the deal? Does anyone see any issues with this?

**(I am both the agent and interested party in this scenario. All necessary disclosures in that regard have been made both verbally and within the contract.)**

I'm a St. Pete based RE agent looking at purchasing rental property in the area. I'm having trouble making the numbers work due to the surge in home values following the pandemic paired with higher interest rates is making cashflow difficult. (although I've still been able to find a few diamonds in the rough). I am considering alternative financing options to help decrease mortgage payments and allow my margins to hit my targets. One such financing option that caught my eye is an Adjustable Rate Mortgage (ARM). My general plan would be to utilize a 5, 7 or 10yr ARM for the temporary lower interest rate and then sell/1031 or refi and lock in a lower fixed rate based on market conditions at that time.

My questions are, does this seem like a sound strategy and, while I have a general understanding of how the 3/5/7/10yr ARMs work, are there major or hidden drawbacks to be concerned about when financing with an ARM? Will I be able to refi as easily as I'm thinking or ae there hidden conditions that can prevent flexibility at the end of the fixed-rate period? Open to any advice, good or bad, from anyone with some experience financing with ARMs!

Thanks BP family,

Griffin

In short, yes you can rent Primary and ADU separately! As @Jared Decker said, it's quite common in St. Pete but there are certain restrictions dealing with ADU sqft, location and accessibility on the property so I would suggest looking into the specifics. As I'm sure you know, the ADU will need to include the basic living features required for any rental unit such as a kitchen w/ sink, bathroom, sleeping area, etc. but as long as you do your homework you're good to go!

I'm looking for some insight regarding the flexibility of FHA loans. I know about the general qualifications for FHA/203k and am thinking this could be a good strategy for a property I am analyzing in St. Petersburg, FL. I plan to purchase the property with FHA and rehab with the 203k. It has been my understanding that FHA loans must be used for homes that are "move-in ready". I'm concerned the extent of rehab it needs will prevent approval by Fannie Mae. Any advice or experience with the flexibility of FHA loans in this context?

Also, I know its required that I live in an FHA financed home for minimum 1yr, so can I live/rent somewhere else while the rehab is being done or does the home have to be my primary residence?

Also looking for references/connections to reputable private money lenders as an alternative if anyone would be interested in working together and wants to connect!

Griffin

I'm looking for some insight regarding the flexibility of FHA loans. I know about the general qualifications for FHA/203k and am thinking this could be a good strategy for a property I am analyzing in St. Petersburg, FL. I plan to purchase the property with FHA and rehab with the 203k. It has been my understanding that FHA loans must be used for homes that are "move-in ready". I'm concerned the extent of rehab it needs will prevent approval by Fannie Mae. Any advice or experience with the flexibility of FHA loans in this context?

Also, I know its required that I live in an FHA financed home for minimum 1yr, so can I live/rent somewhere else while the rehab is being done or does the home have to be my primary residence?

Also looking for references/connections to reputable private money lenders as an alternative if anyone would be interested in working together and wants to connect!

Griffin