OfflineOkay, if you've seen my journal, i think I updated it that our apartment deal was close to dead. I was very disappointed because we've been working on that one since Christmas, and were scheduled to close and start rehab next weekend. It would have been $1600-$2000/mo cash flow once all units were rented out. Killer stinking deal, especially for our first one!
So, hubby and I talked about how maybe it's a blessing in disguise, and maybe we should just be focusing on building capital. Things were going to be so freaking tight with the apartments - we had borrowed the down (don't tell uncle sam!), and had to kick the contractor an extra $1000 out of pocket to help him get his license and bond going again (he had dropped them over the winter because of no work, and was still pretty broke), so tight on the rehab budget that we weren't sure we'd be able to get all the materials with the first draw -etc. Really stressful - worth it for sure, but just stressful.
So, we decided to seriously look at flipping some houses up here to build some capital, and bring in his brother as a partner (he's got cash available, so partner instead of borrow). We found a great house, and Jeff went to look at it. Probably make $50k on it, and split that with brother and end up with $20k in our pocket.
Well, I posted a plea for help on the apartment loan to my local REI club, and had quite a few reponses. One is a lender (The Financial Group, Inc. out of Portland, OR) who says they can close this, they are the lender, and they have deep pockets. Says they can do FHA or might have other options, too.
Now Jeff (hubby) is wondering if maybe we just shouldn't let the apartments go and concentate on the capital building? I know his brother was stressy about loaning us the down for the apartments, and was somewhat relieved to hear that he was going to get it back. I also know that he was fully on board with the partnering thing.
I don't know all the slick tricks, but we're afraid if we do the apartment deal, we'll have to come up with 20% on the flipper house, and I don't think brother has that much cash available. But, if we do the flipper, the apartments will probably sell in the meantime.
What do you guys think? Apartments are REO and flipper house is short sale, so no dealing with Owners for terms or anything. Obviously, I want both!! Any creative suggestions on how to do both, low down on both, would be VERY appreciated!!
Thanks!
Tracey R.
Hi everyone!
Well, hubby and I talked more, and now he says that if we want to do both the apartments and the flipper deal, then brother in law could put the flipper house in his name, and have a lease written up for his current house so that he or mother-in-law would be "owner occupied" on the flipper house. Hopefully that would work to acheive the low down pmt on that one. And, hopefully brother has enough cash available to handle the down, even though it's low, on both deals.
Any other thoughts on creative ways to do both deals without needing 10-20% down on one of them?
How does it work when the loan is one person's name, and there is another person on the title? Can you do that? How does that impact whether or not the property is owner-occupied? Like if parents bought a property for their college-aged child, and child was going to live in home and be on the title, but not on the mortgage loan - does that work?
THANKS everyone!
I think I'm going to get to join the academy today, so THAT is a blessing no matter how these 2 deals go!
Tracey