Marketing your mixed use buildings for 3.5% down
This is a typical mixed-use building. This would have to be on a corner in Santa Rosa, California. I watch this on for quite some time as I would pass it on my way to a draw inspection for new consultation.
I called the Realtor at the sign but got nothing. Here is a bank owned and the realtor had no interest in marketing is property properly. They would just stick their sign on it and wait until eventually somebody would buy. To me that's a crime, either you're in this business or your not.
You take on someone's property to sell it, then you should do that and marketed properly. This property probably would've sold in a very short order had it been marketed as a 203k fixer.
Instead of waiting for someone with 35% down payment, they could have sold this with a 3.5 down payment instead. In case you haven't figured it out there are a whole lot more people with 3.5% down than those with 35%. The great thing about a 203k would be that you get the money to fix up the residential portion and the exterior at the same time.
Mixed-use property should all be FHA 203k sales to give your client the best bang for his buck. If you have questions about how you can utilize this program more join us on our radio show every Sunday from 1 to 2 PM Pacific standard Time.
With this program, the borrower gets the money to fix up the residential aspects of the property. I had an email conversation with a Realtor trying to market a mixed use property yesterday. The property was 3 units and two were commercial use... he discounted the use of the FHA 203k... not interested.
Why not take the two commercial uses and turn them into live/work units thereby pushing the residential aspects of the property so it makes the 51% needed residential use, it also then allows more money to be used for the renovation.