How to find a primary residence

General Real Estate Investing
1

Some background, in 2007 I sold my rentals and my Primary Residence (PR). I’m looking to get back into the game so one of the first things I want to do is find a great primary residence. (actually two, one for a relative too). So I’m wondering how some of the seasoned investors here would go about it if they were looking for a pretty home to live.

Would you do anything different if you were looking for a great home to live in (vs a fixer or low grade home)?

2

Wow, almost 100 views and no one has 30 secs to type???

I am in this situation also.

I find that OWNER FINANCING is the key.

Go for the 20+ yr old houses, owned by a re-habber/landlord who’s tired of renting it. or a motivated seller, preferably 60+ years of age who do not or plan to not occupy the home due to wanting to retire or retirement home.

I found one who will sell to me for last year’s value($54k) for 10% down over 10 year period.

But I feel I can do better. Just put contracts out there that will allow for you to get in for under $5,000. This way if you don’t like to move in, you can market for LEASE PURCHASE BUYERS "$3,000 down/ $750 month - Allowing you to sandwich the lease.

Make sure you have the SUBLET clause in your agreement with the original seller and you will be in the clear for legal issues.

3

Actually, you can find primary homes in different places in a country that can fit into your budget.

4

I would suggest these 3 points:

1.Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

  1. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

  1. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that’s just the bank’s way of determining whether the house is worth the price you’ve agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

5

We would use the same system we use to find investment quality Sub2 deals.

Here’s the steps we would take…if we wanted to…

A. Avoid qualifying for loans…
B. Avoid putting down 20%…
C. Take over payments…
D. Get the deed…
E. Give the seller a Twenty dollar bill for his ‘actual’ equity…
F. Own a larger home than we could qualify for conventionally…

We would…

  1. Choose the neighborhood/area we wanted to live.
  2. Filter in the prospects with most recent purchase money mortgages (lowest equity; easiest and cheapest to get into).
  3. Get a list of MLS expireds (Sifting for same criteria outlined above).
  4. Mail all the prospects.
  5. Take calls, make appointments, pitch offers, and close on deals we wanted.
  6. Flip the houses we didn’t want to live in; pocket all the cash.
  7. Keep flipping the houses we didn’t want to live in, until we could pay cash for the one house we wanted to live in, in the first place. ( :beer )

Was it worth waiting since May for this advice? :biggrin :biggrin :biggrin