My plan of action is to sell to an owner occupant. My town qualifies for USDA Rural Housing Loans which offer 100% financing and no seasoning requirements, so I put out a request on my REIA's Yahoo Group for recommendations for lenders who are familiar with this program and received a lot of responses....so I'm going to be emailing to ask about further requirements (credit score, etc.) I also am going to be contacting the title agency referrals that I received from the group, to line up an agency that can do a simultaneous closing. Marketing will be setting up a printed flyer to leave at various businesses around town, advertising in the local paper, and using postlets as well. I don't plan on doing anything with the MLS at this point. I'm hoping that I can this deal under contract with an end buyer before the First Time Homebuyer Tax Credit runs out, and if I do, I'll give them a gift certificate to the local tax preparer in town to get their taxes done and file for the credit.
I'm also going to approach a local landlord who also does property management in town and see how much rent would be on this house and ask if he has any interested parties that would want to pick up another rental in the area. There is no work that needs to be done to this place, with the exception of putting in a shower head in the tub, but that wouldn't require much work.
So, we'll see how it goes!
I didn't get to meet with the other seller from Spartanburg, but I'm going to put an option contract in the mail to him to see if they might take it....that will be a tougher sell, for sure.
Still nothing from the one realtor (I bet I'm off his mailing list now, too, Haha!), so I'm definitely pursuing the agent route. Will have to wait until the tax refund in order to register and pay for a class. I was hoping that I could get it done before the First Time Homebuyer Credit runs out, but that doesn't seem likely, given the class schedules I'm seeing.
Anyway, no jinxing the deal now that I've written about it! LOL
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Hi Ingrid,
ReplyDeleteThe USDA office has quite a lot of information. Also, they will easily qualify a Mortgage Broker as preferred, so you don't necessarily have to use one from the list. I have a national list in email format if you would like it.
Good Luck! Taking lots of action here!! :)
~Kelly
Kelly, that would be great, thanks! Do you still have my email addy? If not, let me know. :)
ReplyDeleteHi Ingrid-
ReplyDeleteCongrats on the deal!
You might run into trouble trying to do a simultaneous closing when you are selling to a conventional buyer. I would make sure to check with the title co you plan to use (if you haven't already), and ask them about that. I know the title co I use will only do simul closes on cash and hard money deals.
I'd find out about that as soon as you can so you can work on lining up hard money or transactional funding if need be. Or maybe you can assign it? Not sure if they will allow that, but would make it a lot easier if so...
Keep up the great work, Ingrid!
Steph
Thanks for the insight, Steph! Time to backtrack a bit, as I get the sense I'm putting the cart before the horse. I will call around the title agencies and get that nailed down first. The owner hasn't returned the option contract yet, and I don't want to start any marketing until I have that in hand, so that helps a bit.
ReplyDeleteTransactional funding seems a bit too pricey for this deal, given the spread, but I may be able to get a hard money lead from the REIA Yahoo Group.
Anyway, I'm grateful for the advice! You are a gem! :)