All Forum Posts by: Andrew Postell

@Paul I. that is true about Jumbo loans.  I have a feeling that your refinance rates will likely be about the same as your purchase rates.  Do you mind me asking which bank offered the 10% down on a Jumbo?  Was it a profession specific loan - meaning did you have to be a doctor or something to qualify for it?  Or did they wrap a 2nd mortgage in there to make it be 10% down?

@David Zachery if you are active in the investment would I would highly recommend having a HELOC if possible. Even if you don't use the HELOC you may wish you had it in the near future. To answer your questions directly a HELOC would be a lower cost option. HELOC's usually cost between $500-$1000 depending on the bank to setup. Then you can use it over and over again for about 10 years. A Hard Money loan will normally charges you a point up front and a point when you close it. The HELOC may not be able to tap all your equity in your home though. So if you need a large sum you might be forced to use hard money anyway. Also a HELOC takes about 45 days to setup. If you need money right now for this deal hard money might be your only choice again. You can certainly see the reasons to have a HELOC in the future even if it may not be an option right now. Hope this helps!

@William Groom Check out their website.  Bigger Pockets doesn't allow me to post it here but the company is based out of Arizona if that helps you search for them.  It might be good to contact them to do a research call.  

@David M. most investors want to buy a property at 70% of the appraised value of the property.  Remember that if you are paying market rate for a property then you are actually paying OVER market rate with closing costs.  If you were planning on selling your property then you have closing costs again AND you have to pay an realtor who would be representing a potential buyer (not to mention listing fees, etc.)  So paying market rate is not what we want to do with a property.  Buying a property under value is pretty hard in today's market and that's why we also look for distressed properties.  If we can buy a home that needs work it's a more likely scenario that the seller would be motivated.  Hope this helps.

@Taber Roberts While the lot does have some value most of the value from the property comes from the home.  Based on your description it appears you have owned the home for a while and may have equity in the property.  If you don't have any equity in the property the lender could have a problem with it.  I would certainly consult a title company on the proper procedures at this point.  While I have done this on multiple occasions it has been several years.

@William Groom have not done business with them.  Have they offered you anything specific?

@Taber Roberts it is possible to split the "extra lot" off even with a mortgage.  You will have to survey it off and work with a title company to make the split so that you have a deed, etc. and most title companies will understand what you are trying to accomplish and able to perform.  The last time I participated in one of these in Georgia it cost about $1000 to do it.  Hope this helps!

@George Silva if the property is your primary home then the 203k could be an option.  However, if it is an investment property then the 203k is NOT and option.  For an investment property you can do a conventional "Homestyle" loan but most investors do not like this option.  Most of us use hard money or a portfolio loan to buy and renovate and then dependant on your end goal with the home you may refinance out of the renovation/hard money loan or just sell it for your flip.  Private message me for more information.  Thanks!

@Ryan Keenan this is a common issue with investors. Some banks just don't understand our world but some banks also have these things called "overlays". Overlays are the extra rules banks put on top of the normal lending rules. For example, FHA states you CAN have more than one FHA mortgage (under certain exceptions) BUT the bank can say that they limit you to one FHA mortgage no matter what. So dependent on which bank you go to you may hear a different story. And that's why there are so many different stories on lending out there. I would recommend just finding a lender who has NO OVERLAYS and that can also close on time.  Then you will have the most flexible lending that can find.  If you are using an FHA loan to buy a primary home you may run into some resistance when you have 7 properties but owning 2 should have no issues with a lender with no overlays.  Private Message me if you need more information.  Thanks!

@Christopher Hu you can certainly ask your realtor about this but most sellers will downgrade an offer if it comes from a national bank.  National Banks cause too much stress for sellers (and buyers), they miss closing dates, and sometimes ruin everyone's working relationship in the transaction.  If you want your offer to be considered first then please do look at a local lender.  It doesn't have to come from a broker but someone in the market that is use to closing on time is what you should be focusing on. A broker or local lender is acceptable.  This is usually NOT the case but even if a local lender is higher in costs it will only be by a $100-$400.  And usually they will be willing to match offers as well.  The cost of the loan is usually negligible if anything.  Good luck!