Home Buying in Los Angeles>Question Details

Julien Herna…, Home Buyer in Hollywood, Los Angeles...

I found this listing. It reads:ABSOLUTELY NO SHOWINGS- Flooring missing from Damaged Unit 1140. 2 unit property. Owner lives in 1138 which is a 3

Asked by Julien Hernandez, Hollywood, Los Angeles, CA Fri Oct 9, 2009

bed/1ba. Damaged unit is a 1/1. May have violations with city. Permits pulled on rehab but permits have not been satisfied. Entire unit 1140 is NOT habitable and will need to COMPLETELY be rebuilt do to extensive damage. Buyer to verify all. Property being SOLD-AS-IS present conditions. NO REPAIRS to be done by seller. No warranty by seller. All offers to be "all cash". .. AND "subject to interior inspection" Property will NOT qualify for Conventional Financing or FHA or FHA 203k. Please SEE AGENT remarks. Do not call Listing Agent. Listing agent will NOT be representing any buyers on this transaction.

Its selling for 150k. Why is all cash but then it says FHA not available. Is there another loan option. What do I need to further investigate this property? If I was to buy, My plans is to slowly fix the other unit over time or make it one home. Help! from First time buyer. (address of home:1138 N Hudson Ave, Los Angeles, CA 90038)

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7
Hi Julien,

I sell a lot of property around this listing on Hudson and the unit has been in rough condition for quite some time. While you may be able to do a 203k loan, the owners may prefer cash offers as I believe it is a short-sale. You will need to be very savvy to get this property up to speed and it will likely sell above the list price.

I'm currently selling two properties around the corner at Las Palmas Ave and Lexington Ave. If you need assistance with this home or others in the area I'm happy to help.

Sincerely,

Grant Linscott
Keller Williams Realty, DRE #01715002
323.333.6222 cell
grantlinscottproperty@gmail.com
Keller Williams Realty
323.333.6222 cell
0 votes Thank Flag Link Sun Oct 11, 2009
Julien,

There is no damage too extensive or structural damage that would stop you from buying that property with the FHA 203k loan because that is the main purpose of that loan...as long as you are buying it owner occupied with a minimum of 3.5% down payment. It can be done, believe it.

http://www.203kmortgagelender.com

If you are not buying it owner occupied then there there is one conventional alternative at $15k max and several hard money alternatives.

Good luck.
0 votes Thank Flag Link Sat Oct 10, 2009
Julien,
The damage is too extensive for a 203k construction loan.
Work with a local Realtor® that can help you out personally.
It is a short sale.
And not a bad deal. Everything else in the neighborhood is going for $399k and up.
Seen the pictures and this is a hard closing.

The uninhabitable unit seems raw and by the looks of it you might need a contractors opinion and check out the permits at the city hall as well.

Best bet is to work with a Realtor® to see the property in person and see what can be done to make this happen.
Julien, you can contact anyone on here by clicking on their profile to further assist you.


Good luck and best regards,

Jes Sierra, B.Sc.
0 votes Thank Flag Link Sat Oct 10, 2009
Julien the listing agent may have observed structural damamage which would eliminate a 203k loan. The other option would be a hard money loan which normally has a 5% discount (you get 95 for every 100 on the loan) and a 1% a month interest rate in my area. The normal term is for 1 year or less and they will normally go up to 65% of ARV.
Also in the condition the property is in it may not be insurable which would eliminate the vast majority of lenders..
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Sat Oct 10, 2009
An FHA 203k loan should be an option considering the condition it's in.

http://www.203kmortgagelender.com

There is an alternative conventional route but is limited to $15k in repairs.

Then there are hard money rehab loans designed for investors to fix & flip.

Any financing / loan questions feel free to contact me.

Good luck.
0 votes Thank Flag Link Fri Oct 9, 2009
Dear Julien,
You need a good buyer agent on something like this if you haven't started working with one, I recommend you start interviewing them right away. If the listing says..all cash..that means they only want cash offers. I would caution you about considering a property like this..unless..you are a contractor, and can afford to sink money into somthing as risky sounding as this.
Feel free to email me if I can help you further. Contact information is on my website below.
0 votes Thank Flag Link Fri Oct 9, 2009
Hi Julien,


If you are planning on getting an FHA loan to purchase a home, FHA has certain guidelines that the property must adhere to for them to loan on it. Therefore, a property like this which is not habitable and will need extensive repairs will have to be picked up by an all cash buyer. All risk will lie solely on the buyer. Including repair cost. However, there are many other types of properties that will qualify for an FHA loan which you can look into.


Nicole Lindler
Prudential California Realty
310.967.0509
0 votes Thank Flag Link Fri Oct 9, 2009
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