All Forum Posts by: John Schornberg

So I am looking to put an offer on a 4 plex.  First deal.  Don't have a realtor.  I emailed a realtor last night, waited 3 hours then called the office and left a message for ANY realtor to get back intouch as I need to look at a property and potentially put an offer on it to lock it up with contingency.  I still have not heard from the realtor. Yes it is Halloween. But am I being overly critical or should I look for a more responsive agency?

Appreciate any advice.

True, thank you Sir.

All very valid points.  It is not smart money to want to build like this.  I guess with my lack of experience I worry about buying a bad property.  But your points are 100% accurate.

I was thinking one of the stipulations for the FHA first time home buyer program was you could never have owned a home. Or not in the last such and such time period. So I do not think I would be able to own it, then refinance it at 3.5% interest under this program using that method.

I want my first home to be a fourplex using the FHA 3.5% down program. But I want to build. The FHA program does not allow for new construction. So I want to find a way to work with a construction company/investor to construct this so that I can purchase it from them.

I am relatively certain I can not just go to a builder and say you build this I promise to buy it.  As well I can not own it, because I need to buy it haha.  

So from a creative standpoint what would I be able to do that would allow the end result I am looking for. Can the pre approved FHA loan be assigned prior to construction? I really doubt that. But I do understand that if both parties can make money a solution is more than likely someplace along the line.

Good Day Bigger Pockets Folks,

Looking into utilizing the FHA first time home buyer 3.5% down program for the purchase of a 4 plex.

The rub is I want to construct a certain type of Steel SIP 4 plex. While doing much of the work myself. From my limited understanding FHA does not allow new home construction for this type of first time home buyer loan.

So I wanted to ask the community if we could look at this situation in the eyes of creative financing.  

1. If I get Pre-Approved from FHA that I am approved for the loan up to X amount. Is it feasible to work with an investor/contractor to build the 4-plex with a guarantee to sell to me after the project is finished?

2.  If I worked with an investor what are creative ways to make something like this happen?  Some thoughts:

* I do want to do some of the finish work as I do have construction experience. So the cost of construction would be less than industry average which would lead to increased profit margin for investor.

*  I would be one of the four first tenants. So maybe it would be less of a risk when building.  Although 1 of 4 is still a risk.

Appreciate any thoughts about ways to guarantee purchase of a new 4 plex utilizing FHA program.