Help With Creative Financing In Sacramento.

Hello - I curently own a home in the SF bay and it is my primary home.

I bought a 3/2 in Sacramento, CA just last year (2003) for 250K which is now worth about 300K. It is also bringing in pretty good cashflow of 700 a month.

I just put a deposit on an executive townhome worth 245K just a mile away from the 3/2 in Sacramento. This townhome is estimated to be completed by 11/15/04. I feel that this investment will appreciate 30% by the time its complete. The developer however will only sell to owner occupied buyers.

Here's the problem. Since I already own a 3/2 home just a mile away, how can I convince the underwriter to approve the loan as owner occupied without losing control of the 3/2 or selling the 3/2. Anyy input is welcome. <IMG SRC="images/forum/smilies/icon_rolleyes.gif"> [ Edited by imthegr81 on Date 02/04/2004 ]

Comments(7)

  • fpd15204th February, 2004

    i am a broker, and i dont want to risk advertising on the board.
    please post email.
    or Please See My Profile
    email me with as much info as possible.
    cuz' i think there might be a way.
    thank you . roy <IMG SRC="images/forum/smilies/icon_lol.gif"> [ Edited by fpd1520 on Date 02/04/2004 ]

  • tinman17554th February, 2004

    If they are selling to owner-occupied only maybe you should find out the reason. What if you "find" a way to buy the property and you can't rent it out?

    Lori
    [addsig]

  • kimmyjack4th February, 2004

    The Sacramento and Modesto have 2 of the hightest appreciation rates in the country.!! Have you tried looking for hard money financing, they typically loan money for short term. Another option is to look for partners in the area. I hope this helps.

  • minara4th February, 2004

    Cant you just Lease the property out to a family member ? I bought in a new development before under similar circumstances. Once I showed the underwriter that my present home was going to be leased and that I was taking ownership they approved me....

  • imthegr814th February, 2004

    That is a fact! Sacramento and Modesto are amongst the highest percentage gainers last year. Merced will soon follow.

    Hard money financing . . . I was just reading up about that and it's sounds promising. Is that where you borrow cold-cash short term to pay the house off outright, then get a mortgage after?

  • omega112th February, 2004

    ------- Quote ----------------------------------------------
    "Is that where you borrow cold-cash short term to pay the
    house off outright, then get a mortgage after? "
    -----------------------------------------------------------------------------

    imthegr81,


    The devil is always in the detail... Generally speaking, that's about it.

  • VinceH12th February, 2004

    Why not hold your 3/2 in a trust, and purchase the executive house has owner occ, since now you do not have title to a property a mile away. PM if have any other questions.

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