Quote from @Abel Curiel:
Quote from @Junior Louis:
I saw this multi-family property that I would love to pursue but its bank owned and the lender is saying All cash only. I'd be house hacking this home. Realistically I can't fundraise the amount through family and friends. What recourse do I have if I want this deal? I was thinking getting a private loan or a hard money loan and then refinancing after renovations into a traditional mortgage. Will that strategy work?
Hello Junior,
As mentioned here in the replies so far, find out what is going on with the property - i.e. Physical condition of the property; tenant status; amount owed for tax liens; existence of other liens, judgements or violations, etc.
Chances are the property is not livable and/or has tenants in place who are not cooperating. These are common scenarios in NY multi-family properties that are priced well below market value.
If you can acquire this through hard or private $, be super conservative with your underwriting of the deal. There are usually multiple 'surprises' along the way so you want to be prepared for common scenarios.
Lastly, be sure to have a solid RE attorney on your side to: 1. write the contract in a way to protect your deposit 2. Include all contingencies that allow you a thorough due-diligence period and 3. allow you multiple ways out in case the deal seems to be going south.
All the best to you on locking down your next house-hack deal!
Abel
The property definitely has tenants. The realtor said "it might be fully occupied" so it seems like he never attempted to reach out to the tenants. On the point of finding out "amount owed for tax liens; existence of other liens, judgements or violations, etc." is it possible to do that without early on or does a title company need to get involved?
