All Forum Posts by: Jeff Lezark

The style of financing in place doesn't prevent the owner from making repairs or improvements. While this unfortunate event created a 'loan due' situation, work done prior to the payoff is at the discretion of the new owner. Just caution the family member that this needs to be sold or refinanced so don't go overboard with rehab unless they have long term ownership plans.

MH financing is available but so are hen's teeth. If you're in a rural area try the Department of Agriculture (Federal). They back/insure loans similar to FHA but I'm not sure how they view the MH market. I'm trying to imagine how the seller stuck a MH on the property and decided to make it a part of the permanent structure?! Any photos available?

Came to the party a little late with my reply. Sounds like a good one to take a pass on.

I gave an answer to a similar question on a different thread recently. Your macro version didn't supply an actual sales price so we'll roll with the $89,000 you mentioned she owes as the buy price. Give her a 5% down payment and assume her mortgage either formally with her lender or privately between you and her. If you go the 2nd route you need to be in control of the statement delivery (monthly statement needs to come to you) so you can be assured the mortgage company is actually receiving the payment. I'm sure she's a nice lady and would make the payments if you paid her but why take the risk? Do the minimal rehab described and then put the property on the market. My guess is your profit figure is a little low but even if it's a $10,000 win who cares? You'll be in and out of this in under 60 days and you need the experience. Hope this helps!

Keep it simple, Pyrrha. Give the seller 5-10% down and take title. Create an agreement for the payments and do your rehab. The seasoning requirements typically do not apply to private lenders so go ahead and refi the deal pre or post rehab. Assuming middle ground on your ARV projection you should be eligible for at least 65% or $49,400. This amount pays off the seller entirely and recoups the bulk of your investment. Hope this helps!

Welcome to BP, Tony!

I spent the late 70's living in Atlanta and visit whenever I can. The resources on this site are outstanding as well as the folks who give their time and advice freely. 

Welcome aboard, Andrew!

Welcome to BP, Eddie! I'm happy to help with any financing advice or questions you may have.

If the purchase is arm's length between you and the seller, the F&F status has nothing to do with financing the purchase. The issue will be finding a conventional lender willing to meet your terms.

You are a perfect candidate for The Bank of Mom & Dad!

Seriously, any lender looking at you right now will shy away for all the reasons you stated in your message. Build up your cash position and make sure you are very aware of what's contained in your credit report. Try to find an experienced investor or two who'll allow you to velcro yourself to them to gain working knowledge. Don't be afraid to intern for learning.