All Forum Posts by: Kathy Green

I appreciate everyone's answers. I was hoping to finagle some type of deal in which I could stay in this home. I just cannot move my family right now. And by the owner selling our rental, it puts us in more of a financial crunch than usual...I didn't plan for a move, deposit, first/last month's rent etc. It is unnerving. I am a positive person who makes things happen, in general. But this situation seems very difficult. 

If anyone has other options that I haven't explored, please let me know. After all this, I don't know if buying this place is the best route. But, perhaps an investor would buy it and rent-back? I don't know...still trying to think of new ideas to make sure we have a roof over our heads. Seems like I need a miracle. (BTW, I am in Southern California...and home prices have almost doubled in the last 8 years!)

Thanks for all the tips. This is such an annoying situation to say the least. We prefer NOT to move and I also prefer not to do anything that involves my own income or credit at this point. I will look into the Rehab 203k loan.

Still thinking...but a last resort could be as follows (and yes, I know I may be losing my mind or overthinking but I really want to make something work out for everyone):

1. Get a Fix and Hold HML (to avoid using my own credit), OR a 203k if necessary/possible

2. Rehab and sell at a profit to a buyer who will do a lease-back for one year. 

Based on the exact model across the street, after repairs and upgrades, it can sell for $595k+, and lease for $3000/mo. If I can get a HML or 203k Rehab loan for $530k, I think I can swing it all.

Purchase price (possibly) offer = $500k <---I think the owner would take that if sold as-is

Rehab = $30k

Sell = $595k

Profit = $65k

Lease payments to new owner for 1 year = $36k

Leftover profit (use for fees or whatever else) = $30k

Have I lost my mind or is this a doable scenario? Really trying to make lemonade out of lemons...

=)

Thanks...so consensus...do you all recommend a HLM first then refi to an FHA 203k? Or just start with a 203k. The caveat here is that I am not actually interested in using my credit or income qualifications etc. Covid has hit us hard and this would be quite a stretch for me.

Another idea...may be slightly outlandish...but would an investor be interested in purchasing this place and do a Lease Purchase back to us??...I mean, we already live here. 

Honestly...I am looking for all avenues to explore that helps me NOT have to move out...whether that involves me buying this place somehow, or doing some type of creative deal with an investor...I am open to whatever works.

Thanks for that. Never heard of a 203k . Learning a lot on here....maybe this situation will propel me into the wonderful world of REI! lol

Thanks for this info. I appreciate your insight.

 I don't think there is a possibility at all for seller financing. I get the impression he wants to cut and run. Maybe I don't understand what type of benefits he will enjoy (via seller financing). I will need to research that more.

As for a Lease Purchase agreement, I don't think he will go for that. 

The reason I looked into hard money lending is the quick turn around, needless inquiry into my credit and income and the understanding that I am able to re-finance afterward. (maybe I am wrong on that)

So is there an assumption that re-financing is unattainable in this case? That is to say, to re-finance a hard money loan, I would need to apply as a traditional loan? 

Besides the lease purchase option and seller financing...if you were in my position what would be your best move?

I currently rent (as in I AM the renter, living in the home) a 3B/3b attached home. We have had some plumbing issues and the kitchen ceiling has been removed, treated for mold etc. Not replaced yet by the owner. Also only 2 of 3 toilets work because of older plumbing issues. 

Needless to say, this place needs repairs.

The owner said he can no longer afford to manage the property and gave us 60 notice so he can sell...I assume to cut his losses (and headaches). However, he is fairly cheap and I think he will take a unique deal if it benefits him. I would also like to benefit from the following deal as well.

SO.....here is my idea....I am NOT a real estate investor but this situation has me thinking outside the box because moving during covid with 3 children doing distance learning is not ideal.

Please tell me if my following solution to this situation is feasible, or if I am way off or missing something.

1. I obtain a hard money Fix and Hold Loan and purchase the property from the owner. It would be under market value for sure because finishes and fixtures are old AND repairs are needed.

2. Once he agrees and we close on the property - we fix/update (while still living on site) and refinance. It would be owner occupied (by me) indefinitely and I can rent or sell for a profit in the future.

Questions on what I have proposed:

1. Can I get close to 100% financing using this type of Fix and Hold loan - without using my own credit OR income check?

2. How would I go about this? Is this even feasible? I have a lot of friends in the mortgage/finance/real estate industries I can tap for information/help. But I don't exactly know where to start - particularly to make this deal happen with the current owner/landlord.

I know that it can be a win-win because I know he wants to cash out and not deal with rentals anymore (especially this one that needs repairs). It is a win for me because not only do I stay on the property (don't have to move my family) but also can turn it into a profit at some point.

ALL ADVICE is welcome on this question...I am a total newbie in hard money lending /borrowing and want to do what's best for my family and situation. Thanks in advance!