All Forum Posts by: Eric Denson

No the mortgage company would not finance me and even gave me back my appraisal money. My realtor suggested I talk to the bank that currently held the mortgage because they were familiar with the property. I did and I had to pay for another appraisal but they financed it with a business loan with only 20 percent down. Its a balloon payment in five years but its amortized over 20 years. BTW this appraisal came in 50,000 less than the other one but it was still good enough to get the loan. I've removed the hoarders and completely remodeled that apartment. Its rented to a great tenant at maximum price. I've also put up gutters, put in 4 concrete patios, paved the parking lot, replaced two outside doors, and cleaned everything. I plan on refinancing it soon.

Yeah, I guess I should clarify that. I plan on keeping this long term for the cashflow. In about a year, after some improvements, I want to do a cash out refi and buy my next investment.

I've finally closed on my first investment property. Now I've got tenants to deal with. My thoughts were to give all of them a chance to renew a lease with me if they can meet the conditions of the new lease, i.e. new deposits for pets, removing dead vehicles, increased rents, etc... I've got one set of tenants that always pay on time, but I would say they qualify as hoarders. I can't let hoarders live in my building. It's a fire hazard and it attracts pests. My question is should I even give this tenant a chance to remove rubbish and clean before I renew leases in May or should I go ahead and give them their 30 notice now?

Oh, I did get my money back today for that bad appraisal. I can't complain about that...

Update: My mortgage company has rejected my loan after about 90 days. What a waste of time. I don't believe the owner can do owner financing either. I showed the appraisal to a few other banks and and they all said they would not loan me money with the appraisal like it is. I am now off to talk to the bank that owns the current mortgage on the property. I got their info from the owner. The thought is this bank is familiar with the property, location, condition, etc... So far I'm now looking at a 20 year commercial loan with only 20% down. I'll find out for sure when I meet with them in person tomorrow.

They are under market right now at $350. Market rent for this area is $400 or more.
Question: If I do a note with the owner, is there closing costs associated with that? If so what? Does the realtor still get his commission? Would the lawyer I was going to use for closing, still be needed to do this note with the owner?

I was wondering if someone could explain in detail how to owner finance this property. I've got great credit, job security and 25% down on a 67k purchase price for a 4-plex in rural Alabama. The problem is I can't get a standard loan because the appraisal states that one of the units "is in poor condition, however it is a livable conditions". There are actually hoarders in this unit. The property is fully rented, needs minor repairs and appraises for 120k but this unit is keeping me from getting financing.
If I give the owner the 25% and arrange for a balloon payment, do I still make him monthly payments? For how long and at what %? Once the balloon payment is due, what do I do then? I guess I'm supposed to have that hoarder cleaned up and go get regular financing, but I've already used up my down payment to the owner. How do I get financing then?
Thanks!

I don't have a problem with insurance, but if this hoarder unit is going to keep me from getting a loan the normal way, I may have to look into the owner financing you are referring to. Could you explain how that would work in detail.
Thanks.

I may do that, but still shouldn't this issue been brought up weeks ago? Why just now? That's what makes this so frustrating.

My plan at the moment is to take myself and my realtor down to the mortgage company Monday and get to the bottom of this. If the mortgage company is not going to loan me money, then I'd like to know ASAP. Question: Can I use the appraisal with a different lender or do I have to pay for another one and wait weeks again?