possible deal soon, need advice though

General Real Estate Investing
1

i have a freind who is looking to purchase a 2 flat but she is coming in with conventional lending. i have ran across many reo properties that fit some of her needs but i’m a little concern about her finaincing people will require seasoning before they approve the loan. ok fine, i’ll do a double closing if they do. my questions are:

  1. will the bank allow her the full amount she has been approve for to both purchase a reo property at discount and let her make the nessessary repairs on the property as long as the work need doesn’t exceed the amount she has been approved for.

  2. has anyone done a deal this way, if so can you give me some options on how to structure this deal.

thanks
howard

2

If the property is a REO (Real Estate Owned) property and just to clarify this “The bank has already foreclosed and listed this property with a realtor”

They allow a conventional closing which can be directly with your friend.

The loan she is looking for is if I remember correctly a 203k program which allows purchase and remodel in the same loan which when the construction becomes final and the permits are signed off becomes a permenant 30 loan.

Check with your local mortgage broker for details and to see what’s available?

I used to do these a long time ago!

3

thanks