All Forum Posts by: Ave Escobar

@Ave Escobar

Since the lender is a HML and it's a duplex, it is likely a business purpose loan (commercial loan). In which case I believe the CFPB 120 day waiting period after default would not apply. The 90 day notice is a CA statue, which would apply.

Your best bet to know for sure is to contact a foreclosure trustee in CA.  They are very familiar with this kind of thing and usually offer free advice.  Foreclosure's are not typically handled by attorneys in CA so not the place to start.  Google California foreclosure trustee, there a bunch.  DM me if you need a name or two.

I did a total of 50% down assuming that interest will drop in the next 5 years so I can refinance. I got a nonQM loan structured as below :

30% down, 4 years of monthly loan payment up front, 5 year term with 30 years amortization. interest locked in at 6.75% for the term.  

It basically got me to approx 50% down in total, but I won't be paying loan payments on it for the next 4 years as I already did upfront and will have cashflow from the rental.

It was either this or the conventional way but the price was a steal and I wanted to get it before some other buy came in. Since its a nonQM they don't ask for any financials, and it only took 1 week to close after submitting application and appraisal was completed.

Hello everyone! My husband and I are investors and have 3 doors in Los Angeles - all LTR. We're interested in STRs, but given the current interest rates are nervous about having to keep an STR afloat if/when the property isn't performing well. We are considering putting 40% down with a conventional mortgage to ensure that we can make payments on a bad month... and wondering, does this ever make sense?

For some background, we'd be pulling this capital from a stock portfolio in which we are very over-invested in one industry, so my husband is eager to divest a good amount and put it in RE. 

TIA for your thoughts and input!

If you are working with seller, is there an assignment of rents clause? Seizing rents will improve negotiation with the tenant/owner. Some moving parts here.