All Forum Posts by: Tracy Cummins

Trying to familiarize myself with the mechanics of hard money lending.  I understand it in the context of investors parterning on a flip, but wondering if it's viable to aid someone purchase a primary residence.  Essentially Buyer has found a house off-market and wants to ensure the purchase is "as-is".  The condition of the house makes it unlikely for a conventional loan to close without addressing a few health/safety issues before closing, but the Sellers want an "as-is" sale.  

For the Buyer in this situation, is it possible to use a hard money lender to purchase the house from the Seller "as-is", quickly address the health/safety issues that a conventional loan would flag, and then essentially "buy back" the property from the hard money lender at the original purchase price + interest/points using a conventional loan for the purpose of living in the house? 

Anyone have any tips, tricks or helpful comments on how to successfully buy a quasi-hoarder home with a conventional loan to be a primary residence? It's an off-market sale.

Updated less than a minute ago

My questions/concerns are more directly tied to the condition of the home and securing a conventional loan without requiring the Sellers to do repairs/clear everything out before I can close on the loan. Namely, if the clutter will be over-looked by the appraiser, will the loan fail to close if the deck is unsafe, will the loan fail to close if there is water damage that needs repair...etc. I know conventional loans are less strict about condition than an FHA/VA, but more wondering where the tipping point is from a lending perspective to require a reno-loan vs. conventional.

There are a few health/safety issues.  Both Seller and i would prefer if I address them after closing, but I'm wondering if the issues would prevent a conventional loan from being a possibility:

The deck is definitely unsafe and needs to be torn down.There are three moldy ceiling tiles in a storage room that is NOT part of the heated living areaThere is some water damage in one of the basement bedroomsThere is some evidence of some termite damage in one room but appears to be inactive/not extensive.

Does this sound like a conventional loan, as-is sale deal killer?  Any ways to avoid losing the deal?

Thanks @Dan Maciejewski, that's a great idea. will do.

@Dan Maciejewski Yes they have agreed to sell, and are no longer living in it. The family has spent quite a bit of time clearing it out already, but plenty more to go. And yes, my brokerage is fine with a commission free off-market sale. My questions/concerns are more directly tied to the condition of the home and securing a conventional loan without requiring the Sellers to do repairs/clear everything out before I can close on the loan. Namely, if the clutter will be over-looked by the appraiser, will the loan fail to close if the deck is unsafe, will the loan fail to close if there is water damage that needs repair...etc. I know conventional loans are less strict about condition than an FHA/VA, but more wondering where the tipping point is from a lending perspective to require a reno-loan vs. conventional.

Anyone have any tips, tricks or helpful comments on how to successfully buy a quasi-hoarder home with a conventional loan to be a primary residence? It's an off-market sale.

Anyone have any tips, tricks or helpful comments on how to successfully buy a quasi-hoarder home with a conventional loan to be a primary residence?  It's an off-market sale.

Hey @Uriah D.  I've got a guy...great with communication, great for painting and pressure washing, works clean and quickly.  I'll DM you.

Hi BP community!  I'm looking for a tax accountant in the Charlotte, NC area that has lots of experience with RE sales, particularly straight sales of investment/rental properties.  Who should I know?

Hey BP community - There's a property I'm very interested in which the Seller is looking to do a rent-back situation up to 6 months following closing.  Once vacant, the house will need at minimum, duct replacement, refinished floors and fresh paint throughout to rid cigarette smoke and cat smell before moving in.  Assuming I really and truly want to make this deal work, what's the best way to proceed?  Looking for advice, pros/cons, best practices and pitfalls to avoid specifically on the rent-back piece.  TIA!!!

@Sandra Andrews excellent point.  I believe Zelle would be similar, since it connects directly to bank accounts it probably follows there are transfer limits.