All Forum Posts by: Amit G.

From what I have seen with some other investors, they have gone commercial route, where there isn't a seasoning requirement!

Hello BP'ers,  A quick question for you all geniuses - Is the bedroom in a walkout basement (below grade of course) with egress (conforming requirements) and and a closet, considered while determining comps?  I probably know that Realtors see it as a legal bedroom and will advertise as such, but will an appraiser consider it while pulling comps of the property?

Hey fellow BPers, reaching out to all, for guidance on dealing with a property with reverse mortgage on it.  So here's the thing - 

The owner, an old lady passed away last week, and her daughter contacted me saying that there is a balance of 70k or so on her reverse mortgage. I believe it is HECMA/ HUD thing, but not sure. The market value of property is around 120k or so.

I am really interested in buying the property and am hopefully meeting with the daughter soon to get more details.

Need guidance on how to proceed with this transaction. What to ask, research etc.  

@David Krulac, will appreciate your insight!

Thanks @Brian Gibbons! so just for my understanding and to help those who are researching Sub 2, what all factors could make this deal work? 

I am a newbie doing my first BRRRR right now. But there is another property that I am looking at with following details -

Selling price: 119,000 (listed on MLS for over 30 days and no offers)

Mortgage: I believe around 105,000 (got this info from seller's agent)

I went the conventional route offering her the purchase price much less than asking based on my numbers (Thanks BP calculators), which obviously didn't get entertained for the reason that I later found out was that the seller's mortgage is much more than my offer price. And if seller were to sell at price less than the mortgage, they would have to go short sale route.

The other option that came to my mind is the Subject to option that I can discuss with seller. now my questions with this option, considering the selling price we agree on to is 110,000, are -

1. Do I pay the equity (5000) to the seller and ask her to transfer the deed in my name? or is there some other way this is done too?

2. If I get the rehab on that property (around 10,000) and compensate the realtor for connecting us (say around 2000), my total out of pocket cost would be 17,000. That is my money in the deal which is stuck forever, unless I am missing something here.

3. What would be my exit strategies in this case. I was hoping to rent it out for a long term and hold on to it. Is there any other creative way to go about it so I have minimum money of my own in this deal?

Congratulations @Luka Milicevic. From your post it sounds like you were able to immediately refinance after HML loan. Is that correct? I thought there is a seasoning period involved before you can refinance.

Consider using Centric bank's promo on HELOC.

The introductory rate of 2.64% applies to the first twelve billing cycles after closing. Thereafter, the rate will revert to a variable rate at Wall Street Journal (WSJ) Prime minus 0.50% with a rate floor of 3.99%. They have LTV upto 85% and can generally close quickly. I have my LOC with them.

Can someone comment on what the initiation charges are like with them? like points, fees, minimums etc.

@Brian Gibbons Yes, I totally agree. I remember the limitations with conventional financing I had to face when I bought my property.

Thanks @Dave Curriston.  I'll keep it in my mind while speaking with her.