All Forum Posts by: Sean Wait

Have any of the above people done the program now and have feedback?  I am looking at it as well

Hello all,

I got a call off my bandit signs and am starting off as a newbie wholesaler in Minnesota.

Met with the owner and walked through the townhome with her.  Situation is as follows-

She is getting foreclosed on by HOA for $4000 past dues, Sherriff sale is Dec 3-

She is half way through a Chapter 13 BK so the mortgage cannot be foreclosed on even thought she has not made a payment in a while, $85,000 for payoff.

Second mortgage with a local credit union for $14,000

She wants at least $2000 so she can get a new apartment and move.

Grand total of $105,000.

Did walk through and she thinks she would need to do a lot of fix up to sell and doesn't want to deal with it.  I estimate with fresh paint of coat and two little things that need fixed (one of the bathroom faucets is broke and the pull chain on the ceiling fan is broken).  Rehab costs $2000.

Tax assessed value with county is $136,000

this is a townhome where she is an end unit, then 2 attached middle units, and then another end unit. The other end unit is listed for sale, went on the MLS November 3 for 174k. Reading the MLS listing it has upgraded countertops and fixtures from the subject property.

So this almost sounds like the perfect deal to me.

DO I wholesale it for a $10k assignment fee and try to find an investor to do a buy and hold or the can do a buy and sell.

OR do I partner with an investor and we buy it and pay off the HOA to stop the foreclosure and turn around do the rehab and then sell it ourselves and split the profit.

Thoughts? I don't know the HOA policy on rentals yet, or what rents would be in that community on a 2/2 townhome. The thing I am worried about with me partnering up is then turning around and trying to sell it and worry about title seasoning issues.

@Tim A it depends on why the Loan Officer said you could only qualify for the FHA, is it due to your debt to income or reserves or credit score down payment funds available? Also remember that for FHA you can only buy a owner occupied property. As Upen said above there are other options as well, VA would be an option if you are a qualified veteran or active duty military, conventional financing is basically the only way to go if you will not be living in one of the units for at least a year after you purchase it.

FHA does basically have life of loan Mortgage Insurance these days and this loan can be an expensive choice due to the MI and UFMIP but as I tell borrowers often its the cost to play. If you don't want to pay those things save up 20% for a downpayment! Otherwise just look it as a cost of business and run the numbers taking all of that into consideration.

There can be Hard Money if you want to get into a fix and hold type of deal, buy it using the hard money and fix it up and then refinance out of it with conventional financing. I believe this is what Brandon calls a BRRR.

So far my greatest success is that I have actually gotten off the fence and have started things.  Ordered my bandit signs, joined MNREIA and am networking like crazy and going to everything I can, got a website and domain names, got my business cards!  Started and am spending the time and treasure to do this for real.

Hello All,

I am currently a mortgage consultant with a large National Bank and want to work at getting out of the Rat Race and become financially secure and teach mys on how to build a business and have freedom.

I want to start with wholesaling and work up to flipping and buying and holding properties.  Willing to work my butt off to learn and network.  Whether it be helping fold letters to going out on job sites willing to trade my time for mentoring and guidance.