Flipping
I like to buy another house maybe a distressed property, fix it and sell right away. These lender are asking when u apply for a loan whether my primary house or investment property. I don't want to say it's my primary house because it is not going to be. If I say for investment they would ask me to put money down.
I have a friend who did bought a property just recently and tell the lender it is their primary house just to avail the 80/20. But she will fix and sell it and not really planning to stay in that house.
I don't want to lie to lender. Or is their something that i'm missing here? What kind of financing is alternative? Your output is very much appreciated. Thank you.
all you have to do is say it's your primary residence, move into it for 24 hours and take possession.. then they cannot tell you what you can do or not do with the property.
MT
[addsig]
I bought a house recently and had that same dilemma. I moved into it for a short time while I worked on it and then moved back into my regular house, to ease my conscience and guilt because I lied about my long-term plan. I dont know if that's legally enough though, if anyone cared enough to check.
Just an option.
hi,
I have a property that I want to buy to flip. it is worth 140-145k when fixed. The house is 5 years old and all major systems are fine. It's going to be a HUD but only needs cosmetics. I'm going to offer 100k or a little less and I've got an investor for short term. How should I go about flipping it once I purchase it?
Thanks to ur input guys. I appreciate it...
cind_7,
You've managed to receive some of the worst advice I've ever seen given here, and for that I'm sorry.
DON'T lie to the lender. Regardless of your ethics or morals, this is loan fraud. If charged with loan fraud, your conscience will be the last thing you'll worry about.
It's also starting off your business in a bad way. A little lie here, a little lie there, and it won't be long before no one will do business with you.
Find a good mortgage broker. They can find investor loans that lend 90-100%. Find a private investor that has the money but not the time or knowledge to get the property. Try creative financing techniques. There are several options available other than lying on your loan apps.
RXW1985,
If you need to ask a question, please post it in a new topic. Thanks,
Roger
Thank you rajwarrior. It is refreshing that someone has spoken the truth. People lie to morgage brokers all the time about primary vs. investment. In your case in particular, you are rehabbing then selling. Is a couple of percentage points on your rate and maybe a DP going to kill you? If so, maybe you should look else where because you might be spreading yourself too thin. Lying to the bank can come back and haunt you ten or twenty years down the line. Simply put, there is no statue of limitations on this CRIME. I don't mean to sound like I am on a soap box, but I think it needs to be said following the advice of several posted hacks. Tell the truth and you will never have to look over your shoulder.
Matt
I am learing myself. But there literally 20 different legal ways you can get financing on this property.
1. owner financing
2. hard money lenders(high interest rates..but doesnt matter since you are selling fast)
3. mortgage broker( do not let him shop around your application because too many inquiries leads to bad credit)
4. personal loans, credit cards.....
list goes on on..
Thank you rajwarrior.
I appreciate your advice...I will just keep on looking for lenders that offers 100% financing...Thanks again...
Have you also considered wholesaling as a way to build up capital for down payments?
you could also ask around and find money partners for your deals. just call the investor "we buy houses" type ads in the paper and see who they recommend.
Don't leave out taking over the mortgage payments for the seller during the redemption period and bringing the loan back to good standing, then find the investor and quickly flip the house as assigned. There are some creative ways doing this.
Hi Julieann,
What is wholesalaing? Can you give me an idea what is this? Thanks..
You need to always tell the mortgage company that you are purchasing a rental unit or property. I'm in the mortgage business, this is not your primary residence.