Newbie Advice on REO

Say I found a SFR and SP is $40K (so I could possibly get it for less)and ARV is $78K and I don’t have cash/credit to purchase it; If someone could suggest how to go about finding lenders that may possibly finance for owner occupancy would be greatly appreciated.


The percentage of potential purchase price at $40k is good compared to the ARV of $78k provided repairs don't exceed $12k.

The problem is your not likely to find a hard money lender who will loan money in this situation with you not having any cash or credit. If this were a pristine home with a FMV of $78k you were buying for $40k and you had a 750 mid fico you might get a private money lender to loan on it for 2 or 3 years until you could refinance!

If you had a 750 mid fico you could still basically 100% finance owner occupied in some states still. Now your not likely to find any lender who will loan 100% to someone with no cash to risk in the game and no credit with a home requiring some kind of repairs, and most hard money lenders will not loan the rehab money.

And hard money lenders do not want to see you owner occupy the property. This might however be a good property to do an assignment on and make a few thousand on!

We live in a country with freedom, whether we have freedom 4 eternity is up to us?

Good luck,


Thanks GR,

How do you go about doing an assignment? I do live close to the property and could probably retrieve any other information needed.

Thanks again.