All Forum Posts by: Jeffrey Yates

Hi Sam - have a very similar situation with a house in Lake Worth, FL and was curious if you got a resolution/answer to this?

Thank you both!

I do have a pre-approval, but it's based on financials and not tied to a subject property. For this house, though, the roof appears to be in fine shape, it's concrete block and I don't see evidence of termites (got a lot of experience with those!), are there any other conditions I could have noticed (without inspection) that would make property un-financeable?

Still, I wouldn't say I'm confident enough to buy the house *no matter what* the due diligence/inspection period reveals, that's just too much risk for me, especially just starting out. I wonder if I could mitigate that risk by paying for my own inspection ahead of time, but then, that could be money out the window if the bank rejects a cash offer anyways. There's no telling.

I know investors buy houses with waived inspections all the time, but how do they know they're not getting in over their heads? I suppose I could always have my fiancé's dad (a gen. contractor) with me at another walk-through...

I'm thinking an increase of my EM only would be a good middle ground, but really that money's not any more at risk than before, so I'd have to hope the bank see it as seriousness. Thank you guys for the quick responses!

*First post - exciting moment for me* Hello, BP! Thanks so much for all the information, already! Amazing community, now it's time for me to participate. Here's my situation:

I've found an REO property in our neighborhood in South Florida listed at $130K but stagnant on the market for 60+ days. Based on comps, condition, and lot size we've offered $80K and know it's reasonable - seller's agent agrees. Just got a response today, bank rejected our offer "due to financing -- please see if buyer can offer cash and resubmit your offer." By the way, we waived financing contingency but had to provide proof of funds along with offer, and don't have the full 80K, so had to be honest about the financing piece.

My question is this - since it's a cashier's check for the seller at closing regardless of where it comes from, is there any way around the cash offer thing -- that is, can I find a financing arrangement that allows me to PRESENT like it's a cash offer but have a separate agreement (on my side only) to pay a lender -- isn't this the benefit of private financing? Also, that begs the question, is it allowable and legal?

I guess my question in general is: when a seller is being choosy and only entertaining cash offers, what are my ways around this?

There is little to no chance of me being able to show proof of the full $80K. But I do have significant capital available to do something like 25-30% (maybe more) down if I can find a smaller bank or private lender that will "play ball." Lastly, I've got equity in an existing house that I own (though not enough for the full purchase price sadly), can I use that to my advantage in any way other than increasing my down payment? (i.e. as collateral for private lender/HML to make my offer "appear as cash?")

Thanks!

Jeff

Buddy,

I'd also be very interested in joining a South Florida group for Palm Beach County. My fiancée and I are just getting started, looking to either buy and hold or fix and flip; we really want to research and learn as much as we can to do this one right - could be the start of something grand! I think networking with local REIs with more experience would be excellent. Please let me know if this ever gets going as I'd/we'd definitely plan to be there. Thanks!