All Forum Posts by: Account Closed

Hello BP Community,

Looking to get some guidance/help.

So just to give a quick background of my dilemma:

I’m new to investing and am in the process of purchasing my first piece of investment real estate. For the financing part of this, I’m using a conventional loan with 5% down and paying all closing costs. On the loan documents, it will be classified as a second home and not as an investment property. After closing, there is a chance that I will do short term rentals (it’s currently zoned for that) when I’m not using the property for myself. The bank is giving me a hard time about this - they’re almost strong arming me into saying that I won’t ever use it as an investment... just personal use only.

My question is this: Can the bank, after closing, perform a spot check to see what I’m using the home for? And let’s say that at that particular time, I’m doing a short term rental... can they sue me, terminate our loan agreement, etc.?

Any feedback would be greatly appreciated!

@ George Blower - thanks for the welcome!

Thanks so much JD for the info - that helps a lot!

Hi All, I’m new to the real estate investing world and have been educating myself a lot on the logistics of how this all works. I have one question regarding getting funding: Starting out, I plan to do fix and flips of SFH in my area (Elmont, NY). I plan to use hard money to fund a portion of the purchase. What I’m finding a hard time understanding is that whenever I find a good deal, do I need to have proof of funding lined up before I make an offer? Or do I find the potential deal, run the comps and prepare what I plan to offer, then approach the HML with the proposal, get a letter of intent from the HML (if they like the deal), and then put in my offer to the seller? Does it work like getting a pre-approval through a conventional lender before putting in an offer for a property? Or do I just disclose to the selling agent that I’m an investor and here’s my offer - if it’s accepted, I need X number of days to get secure the funding? Any help would be great! Thanks.