I am about to purchase a house, and have no other homes. Can I say I am buying it as an owner-occupant to get first dibs and then later “decide” to rent it out?
I am asking because(here at least), Investors can’t offer until 15-30days after owner-occupants offer. I finally found the perfect house and want to get it before anyone else does.
Being unethical is not the way to get into the Real Estate Business. :rolleyes
what’s unethical about that?
Can I say I am buying it as an owner-occupant to get first dibs and then later "decide" to rent it out?
Seriously? Lying isn’t unethical?
I don’t think so, for acquiring the house at least. If I tried to rent the home out with no/little repairs, then I see that as unethical. Just trying to get the house I want before someone else does is all.
I don't think soAre you kidding? :anon Then why isn't everyone doing it and [b]why are you asking[/b]?
Yes, you can do that. Because you are technical not a homeowner already they really cannot say anything.
However, if you do it twice (or more), then look forward to the FBI throwing you in the slammer - LOL. I don’t think that’d really happen, but I would advise against doing it a 2nd time - you could actually violate the law someway and get into trouble.
I don’t wanna do it a 2nd time. It’s just that I’ve found 3 good homes and lost them all due to O/O’s, so I want to say, yeah I am a O/O too, hook me up with this house. I don’t want to lose out on another good deal due to O/O’s.
I am trying to find my first property and I have been robbed 3 times and I am getting frustrated.
However, if you do it twice (or more),
Oh I get it! So intentionally lying once is OK. It’s if you do it twice… :anon
And if you were to win the bid over someone that did want to occupy the house? I see now…
Yes, things about the business can be frustrating. Idiotic people who think owning anything is an “investment” and paying way too much for a property you wanted is annoying, but you’re signing your name stating you’ll owner occupy for a year. Is your word worth nothing? Can people not trust you? Do people think you lie to their face when you speak?
I think you’ve gotten a good cross section of opinions here. So far, no one thinks this is a good idea. If you want to be THAT GUY, then do what you’re wanting to do. If there are reprecussions later, you brought it on yourself…
Cityslicker:
I hope to never meet you, Your ethical compass doesn’t point north. Hopefully you can sleep at night and feel good about yourself.
Lying to get a bid is wrong even if you can get away with it.
You would be hurting potential owner occupants and other more ethical investors who may be waiting.
I lost a bid on a HUD home because I was honest. I bid 9K (asking was 8.5) I waited the required time, but still lost it to the owner occupant who bid 5.5K.
But I can sleep well at night knowing that that house was probably their whole family’s ticket out of generational poverty.
And I also drive by that property, If I see a for rent sign I will be taking him to court.
Yes - it is unethical to lie - so lets not forget that. I agree with you guys there.
But it is not illegal to do what he is talking about, assuming he does it ONCE and he truly “owner occupies” the property upon the purchase & closing of it for ~30 days and then decides to rent it out after that. Yes, he might be considering renting out after 30 days now, but nothing for certain says he will do it. He could still change his mind and live there forever, right? People probably (sometimes) consider renting out a house in the future, if they encounter an unexpected situation, before closing on a conventional house purchase with a conventional loan - right? We are getting down to technicalities here.
Nor is it technically illegal (nor unethical) to get an FHA loan on an owner occupied property, move into the house, and move away a month later because his job transfers him to another city … and in turn he leases out the property with that same FHA loan on it.
Nor is it technically illegal (nor unethical) to get an FHA loan on an owner occupied property, move into the house, and move away a month later because his job transfers him to another city ... and in turn he leases out the property with that same FHA loan on it.
This is true, but not what he said nor what you encouraged him to do.
I think the title of the post is pretty self explanatory as to intent. :cool
Ok well I decided not to go that route, even though honestly I had no evil intentions, I just want to get a house I can work with.
But I found another one, it’s been on the market for like 200+ days, it’s foreclosed/bank owned. it’s listed as $4,000, is there a possibility of getting them down to 2k or less? It seems no one plans on buying it, and I am sure the bank just wants to get it off their books, correct?
BTW it is need of a lot of repair, obviously for that cheap. But it seems workable, and I could possibly live in it for a while before renting out, or I may just stay there and find another house to rent out.
Sure. Make the bank a low offer. They accept it or they don’t. I’d think you would have a good chance of getting the offer accepted, but you don’t know until you try.
Be aware that you will have some closing costs, so even if they accept the $2,000 offer, you will need more cash than that.
You don’t have to owner occupy unless you take an owner occupied mortgage, or the house is for sale only to owner occupants. However, living in your rehab while you work on it, is a good way to save money and to keep the riffraff from stealing out of the house while you are trying to work on it.