All Forum Posts by: Lamont B.

Good morning BP,

I've done a few fix-n-flips, but I'm considering buying a lot to build a home to resell.  I THINK I know some of the basics: buy lot that has connections to sewer and water, find a builder to build the home, then sell.  For those who have done this before, what should I look for, typical pitfalls, realistic expectations, etc.  I'm assuming that I should be able to make a profit after the construction of the new house.  All guidance is appreciated, but I would like to hear from individuals who experience in this area.
 

Thanks @Jason Runkle, @Wayne Brooks, @Michael Noto for the response. My biggest concern was selecting the correct type of financing: conventional or cash. The agent (also my wife) is new to real estate, but she does have the support of her broker. I do have a pre-qual letter, but I was getting the impression that the seller wanted to see POF from the HML - not sure. Based on the feedback, it seems like I have nothing to worry about. Thanks again.

Greeting BP,

I was told that there is no such thing as a dumb question; with that being said - Can you purchase a HUD home (hudhomestore,com) using Hard Money? I ask because I looked thru the Owner/Investor packet that a successful bid would get, and the options for type of financing are : FHA, conventional, cash, 203k (if I am reading correctly). My fear is that after submitting a successful offer, the deal will fall through. I also read a few stories that required the lender (Hard/Private Money) to show proof of funds and the lender didn't/couldn't. ANY insight or personal stories would be appreciated

@Josh Mente @Ned Carey @Ian Barnes,

Thanks for the advice, since the post the HML has informed me that the only way to purchase the property, using their services, will be through a business entity. I have since then started my LLC, Lincoln Estates, and literally just signed the updated contract. I am not sure why I couldn't purchase as an individual, but I will ask after I settle on the house. Truthfully, it's a blessing in disguise. As a business, I will potentially save more than $10k in out of pocket costs (although my monthly payment did go up). As a new investor, this helps tremendously. I will try to get rid of the ground rent after I take ownership of the property.

Thanks to all who shared their thoughts. 

Afternoon BP,

I finally landed a contract, but the deal may not go through due to the property having ground rent on the title - my HML will only finance the loan if we can purchase the property; in addition to the land. I assumed finding this individual should be relatively easy, but my realtor said the seller's title company isn't going assist. I personally went on MD's Assessment and Taxation and found that no one has redeemed ground rent through their department. My question is: How would you find the owner/holder of the ground rent? If he/she has been collecting money, there has to be a papertrail somewhere. Any assistance will be appreciated. Thanks

Thanks @Barbara McArthur @Brendon Grover @Thomas S. for your input.  The way I interpreted the conversation is: there is "a program" that's catered to vets to help with housing.  Sounds American - helping vets.  In return the property owner gets a stable tenant, hopefully, and guaranteed monthly income.  The relative maybe totally wrong, but I never disregard information on a subject that I am not familiar with.  Once again, thanks

Afternoon BP community, a relative mentioned renting to vets but the relative does not know the process.  I just signed a contract to purchase a house in a nice community in Baltimore ( Edmondson Heights for those that are familiar).  Can anyone guide me in the right direction?  I would prefer to resell, but options are always a plus.

@Corey Newton

I would suggest the HomeStyle Loan. From what I have learned, it can be used for investors as well - the downside is the down payment percentage. My lender tells me 15% other lenders wanted 20%. He approved me after we had a back-and-forth about investors using the loan (he had to confirm with someone in his office). I just started REI, so I can't give you any detailed insight, it appears the option is available with the understanding that I'm flipping the property. Hope this helps.

Does anyone have any experience working with the HomeStyle Loan program?  It is a great resource for investors, but my Realtor, Loan Officer (he thought it was only for HomePath homes), and contractor are not familiar.  I've been approved, I'm looking at more properties tomorrow, but I feel like the lack of knowledge may be problematic.  I'm looking for any guidance, positive and negative experience, etc.  Thanks

@Tera Carter I have not done any deals but I am in the process of putting together a bid on a property (the 70% rule is genius), but I am willing to assist you the best I can.