All Forum Posts by: Account Closed

Hi Cate and Dave,

Foreign National loans on the Commercial side (+5 units) I have not heard of any. The residential side 1-4 unts - yes. With good LTV's exist.

Be careful of these so called re gurus - they have been around since the great flood...same wine different bottle.

I say speak to professionals Bankers, RE agents, Lawyers. No one needs a so called "mentor" use the money to buy property.

Check this out on your "guru"

http://www.cbc.ca/marketplace/2010/road_to_rich_dad/main.html

No "secrets" exist. Rich Dad, Poor Dad contains much wrong advice, much bad advice, some dangerous advice, and virtually no good advice.

Hi Eric...
One thing I know from doing real estate financing for a longtime is that no one product fits everyone. Their is no "perfect mortgage" if their was we would only have one product.

Everyone's situation, goals, issues etc are different.

In this market a very tight margin exists between fixed and arm's. So, in general most folks these days have opted for the fixed rates - especially in this fear driven market.

A few reasons a person may choose an adjustable over a fixed rate:

1) They are tight on ratio's and the only way to qualify is to get that extra little bit of a lower rate.

2) I have a lender who will finance and allow a closing under a Corporation Name (Fannie, Freddie, FHA - Most banks portfolios wont allow this) - they dont offer fixed rates.

3) The amount of the loan. Surely on a 30k mortgage the difference in rate makes such a minimal effect on payment - but for those with large loan amounts they can surely save an awful lot of money by having a lower rate even if it is only slightly lower - not to mention that the loan amount ammoritizes much faster - the client saves a ton on the monthly payment - with good caps - the borrower has very little risk and has the initial on going savings and faster ammorization to bank on. Then yes, it makes sense. I have done the numbers on some clients and yes it pays for them to do a ARM - again these are large loan amounts.

Do a Ben Franklin - put the plus's and minus's on paper look at the numbers and find out what is right by you.

Other thought look into buying down the fixed rate - if the property will appraise maybe you can negotiate seller concessions and use those funds to buy down whatever mortgage you choose.

Carter

FHA Flipping Rules
If you have rehabbed a property dont be shy of an FHA borrower/buyer. If within 90 days - you will need 2 appraisals (usually borrower only pays for one), an inspection report that meets guidelines, be prudent if the seller could show/say what was done on property to substantiate value.

Depending on price range but opening up the buyer world to folks who need/have financing surely increases this pool of potential buyers.

I am in South Florida and values as you can imagaine are all over the place. Folks here have been doing well flipping properties.