Need help finding an investor

My husband and I want to buy the home we are currently renting, fix it up and rent it out an an investment property. We live in the home but as renters. Most investors I talk to (hard money) wont lend to you if the home is owner occupied. Since we are renters is it still considered owner occupied? If not what can we do to get funds to purchase the home? Its worth about $112k. Thanks!


If you buy it and you intend to live in it after it closes, it's owner occupied. Now if you move out and into another rental and the house is vacant the day of closing and you not moving back in, it's non owner occupied.

You have some choices as to how you can own or eventually own this property.

A. A lease option with monthly renters credit and ability to buy the property at some future point.
B. A contract for deed allows you to make payments to pay down an agreement which eventually allows you to achieve the deed and under this agreement allows you to sell your contract interests or refinance when sufficient equity exists.
C. Wrap or Sub 2 existing underlying debt, you have the property with underlying debt and a deed.
D. FHA financing with 3.5% down and closing costs usually 2% plus inspection and appraisal costs. (If you buy using FHA your expected to live in the house for a minimum 18 months and could not make it a rental until fulfilling this agreement.)
E. If you or your spouse is ex-military your eligible for VA financing for 100% plus 100% of closing and all costs. (Must live in home for 18 months)

Good luck,


Hi Crystal,
I completely agree with GR answers. I am assuming that $112K value is “as is”. Next I would need to know how much money you need to fix it up and finally what would property be worth fixed up (What is after repair value-ARV).
Let me make some assumptions in order to try to answer your question. Assuming that property is worth $110K (for easier calculations).Let’s assume that you will spend $10K to fix it up and let’s assume that you can sell it for $150K. In this scenario you would make decent money and it is worth doing it. Depending on your situation it might be even worth if ARV is only $145K.

Since you were considering a hard money loan, you would have needed 20% down, points, and closing costs, so I am assuming that you have at least $25,000. I would suggest not seeking a hard money loan, but use the $25,000 for fix-up funds, contingency, and option money.

Talk to your landlord and offer him / her an extra 5 months of rent if he/she would give you a one year option to buy the property at the $110K price. The option would need to state that you have a right to improve the property during the 1 year period.

This way, you do not need an expensive loan, you only need $10K for refurbishment, maybe $4K for option money, and $3K in reserve. Remember, with a one year option, you need to fix it during that time, sell it, or refinancing it or you lose all your repair and option money. If you think that you need more time, then I recommend structuring the option to have one 3-month extension.

Also, make sure you have conventional financing lined up for after the repair. If you can’t qualify or don’t have a co-signer, I would not recommend starting this project.


George Krajacic

There are several things you can do to locate potential investors. Before you do put together an investor package that will show them why this isn’t an off-the-wall project.

Your package should emphasize the commercial success you have had to date. (You might luck out and find a music lover to finance you, but it is more likely that you will be dealing with someone who is looking for a place to put their money and get a good return and doesn’t care if you play Rap or Bach.