All Forum Posts by: Charlie Gruber

I'm attempting to learn more about Take out Loan Options. I'm finding contradictory information when perform online research. Below are a few notes I've created. Looking for assistance filling in gaps. Thanks in advance and really appreciate the help.

-Charlie

Rate and Term
- No actual money changes hands in this case, outside of the fees associated with the loan. The size of the mortgage (or hard money) remains the same; you simply trade your current mortgage terms for newer terms with longer terms.
- Can refinance up to 75% of rehabbed appraised value
- If wait 6 months can include rehab as part of rate/term loan???

Cash Out
- The new mortgage is bigger than old loan (or hard money loan). Along with new loans terms, you’re also being advanced money – effectively taking equity out of home.
- Can refinance up to 75% of rehabbed appraised value
- Typically higher cost for “Cash-out” loan then rate/term
- ??Must wait 6 months to include rehab cost?
- Typically done after 6 months of ownership

Delayed Financing
- Source or original funds must be all your own cash.
- Can “take out” amount used to purchase the home (plus closing costs). Can’t pull additional equity out.
- Can refinance up to 75% of after rehabbed appraised value
- Renovation or improvement costs CANNOT be recouped with delayed financing. To recoup these costs with conventional financing, a borrower must wait at least 6 months after their purchase and meet all cash out refinance guidelines.
- The original purchase must be an arm’s length transaction (There may be no affiliation or relationship between the seller and the buyer of the property at time of purchase).
- The original purchase must be well documented (assets used to purchase the home must be verified), and proceeds from the refinance must be applied toward the original source of funds.
- The loan amount for the new mortgage cannot be more than what the cash the borrower used to purchase the property plus closing cost on the new mortgage.

Greetings all, I’ve been working in software project management for last 8+ years developing mobile and desktop applications for the financial industry.  I’ve recently acquired a passion for Real Estate Investing and looking to transition to software development in the Real Estate space.  Please let me know if aware of any opportunities.  Thanks!

-Charlie

@Matt M.thanks for your suggestion.

@Russell Brazil, let me make sure i understand you suggestion.  With an escalation clause you essentially agree to pay $x dollars above next best offer.  So if seller gets a cash offer of $300k you agree to pay $300 + x.  A few questions:
1) How do you know the next best offer isn't just the sellers brother making a ridiculous offer to drive up price?
2) I assume you still have some contingency if total value of cash offer plus escalation gets to expensive?

Thanks @Kevin Kroll .  In your sample scenario what if buyer walked away due to inspection contingency?  What is status of $20k earnest money then?

All,

Have a friend looking to purchase personal residence in Denver area and he keeps loosing to other all cash offers even when coming in over asking.  He is using a 30 year fixed.  Anyone have experience using a private lender so able to offer all cash on a private residence?  Thanks for help.

-Charlie

I'm attempting to learn more about Take out Loan Options.  I'm finding contradictory information when perform online research.  Below are a few notes I've created.  Looking for assistance filling in gaps.  Thanks in advance and really appreciate the help. 

-Charlie

Rate and Term
- No actual money changes hands in this case, outside of the fees associated with the loan. The size of the mortgage (or hard money) remains the same; you simply trade your current mortgage terms for newer terms with longer terms.
- Can refinance up to 75% of rehabbed appraised value
- If wait 6 months can include rehab as part of rate/term loan???

Cash Out
- The new mortgage is bigger than old loan (or hard money loan). Along with new loans terms, you’re also being advanced money – effectively taking equity out of home.
- Can refinance up to 75% of rehabbed appraised value
- Typically higher cost for “Cash-out” loan then rate/term
- ??Must wait 6 months to include rehab cost?
- Typically done after 6 months of ownership

Delayed Financing
- Source or original funds must be all your own cash.
- Can “take out” amount used to purchase the home (plus closing costs). Can’t pull additional equity out.
- Can refinance up to 75% of after rehabbed appraised value
- Renovation or improvement costs CANNOT be recouped with delayed financing. To recoup these costs with conventional financing, a borrower must wait at least 6 months after their purchase and meet all cash out refinance guidelines.
- The original purchase must be an arm’s length transaction (There may be no affiliation or relationship between the seller and the buyer of the property at time of purchase).
- The original purchase must be well documented (assets used to purchase the home must be verified), and proceeds from the refinance must be applied toward the original source of funds.
- The loan amount for the new mortgage cannot be more than what the cash the borrower used to purchase the property plus closing cost on the new mortgage.

Thanks @Bill S., really appreciate the great advice.  I'll let you know what I find out.  Thanks.

-Charlie

Welcome Don!  Getting started myself and let me know if I can help.
-Charlie

I'm interested in data about Average Days on market for residential properties.  I found site below but curious what others use for tracking Average Days on market.  In particular I'd like to see historic data so I can start tracking trends and cycles.

Below site seems good but interested what others use.  Thanks!
-Charlie

http://www.realtor.com/local/Colorado

Hello BP, I’m really grateful to have fond such a wonderful resource. I’m primarily interested in buy/hold to generate passive income but also interested in fix/flip. I found BP from the podcast on iTunes and attempting to work through all 144 episodes!

I’m attending the BP meetup happening 11/2 (link below) and excited to meet other investors face-to-face. Highly motivated to stop working for my money and have my money start working for me!
-Charlie
DENVER MEETUP - November 2nd
https://www.biggerpockets.com/forums/521/topics/240108-denver-meetup---november-2nd?highlight_post=1579859&page=1#p1579859