All Forum Posts by: Rami W.

I am shopping for a HELOC with small local banks to see what I can get.

Here are details of an offer. Is this pretty much par what you all are seeing? It would be a line over $100m. The loan fee of 1% seems rough. Is that typical?

Rate: P + 1.0% ...meaning 4.5% currently

Loan Fee: >$100m to $1mm – 1% of Line amount

Documentation Fee: >100m - $350.00

Term 10 yr draw + 15 yr P & I /25 yr maturity.

75% Appraised Value

"There is a 1.00% loan fee plus a $350 doc fee if the line is above $100,000. Closing costs are the appraisal, title insurance and recording costs plus tax service."

I specifically asked about using the HELOC to purchase an additional property because I needed clarity on their term language "Purchase money transactions are NOT PERMITTED under this program." Which I thought meant I could not do this. Their response...

"This means you cannot use a home equity line to purchase the home on which we are securing the line. You must live in the home on which we secure the line."

Any other questions I should be asking? Thank you!

@Alice K. Bankrate published an article way back in 2013 listing Memphis as the #1 market to buy SFR rentals. So to answer your question, yes, more competition the more time goes by. Memphis has been a "hot" market for years.

@Adam McClure thanks for the additional insight. 

@Jeff S. I will definitely work on my own personalize Beneficiary's Demand for my next loan closing. I didn't care for the one escrow provided. I'll dig through BP for good examples.

Thanks again for the great advice.

A follow-up on this. Thanks for the responses everyone. Escrow has closed and I've received my loan back. 

@Jeff S. "RE: NEVER SEND ORIGINAL LOAN DOCUMENTS TO ESCROW UNTIL YOU BEEN PAID OFF IN FULL."

I tried this and the escrow officer said title wanted the original documents in hand before sending me a check. 

Also, not sure what you meant by "I don't understand why someone else is doing this for you". Wouldn't I be the one to confirm the amount I received is correct? Are you saying I should use a CPA for this, or?

The borrower seems ready to pay off his loan. His escrow company has asked me to sign a Request for Reconveyance and a "Beneficiary's demand". I have not yet received the original loan amount back yet. Shouldn't I be paid back in full before I sign the Request for Reconveyance? Or is this the correct process when going through an escrow company (Borrow returns loan amount to me via escrow)? I didn't expect we'd be using an escrow company at the end of our contract.

Also, they mention the place to sign the "request for reconveyance" is on the back of Trust Deed itself, but there is clearly no areas to sign on the Trust Deed anywhere. Would I just find my own reconveyance form online?

Thank you!

Hi, looking for a referral for a appraisal company. Am i allowed to ask this here? I have an acre (developable) lot that currently has a small SFR on it.

Thanks!

_Rami

@Chad Ballard thanks for some insight. Going to talk to them early next week.

Here's what I'm thinking.

Currently zoned RS-20 = Residential, Single-family, 1 unit/20,000 square feet

General Plan = LR zoning = LOW DENSITY RESIDENTIAL (3-10 units per acre)

Ideally I would like to rezone from RS-20 to RM-4300 if the city will allow it. Which would hit the 10 unit limit in accordance with the General Plan.

RM-4300 Residential, Multi-family, 1 unit/4,300 square feet of total lot area or,

44,000 sq/ft lot / 4,300 = ~10 units

Then finance the construction on a 10 unit complex.

Keeping the property as a long-term rental complex seems like an easier process than splitting the lot up, establishing an HOA and selling individual lots. Will probably pay off much more in the long run.

@Chad Ballard I may need you. I've spent hours combing through documentation on the cities website and have found no clear cut answer on if i'll be approved for a rezone. I suppose it just come down to the discretion of the committee. Is that ultimately what it comes down to?

http://qcode.us/codes/elcajon/

@Karen Margrave is a great resource to the BP community.