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All Forum Posts by: Corey Blane

Corey Blane has started 4 posts and replied 58 times.

Post: What is the payoff for a lien that went to sheriff sale in MN?

Corey BlanePosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 59
  • Votes 20
The amount necessary for you to buy back, or redeem, your property is the amount the purchaser paid, plus some allowable costs and a daily interest rate based upon your mortgage loan interest rate. In your case you'd need to pay $41,000 plus interest and allowable costs.

Post: 203k FHA Loan

Corey BlanePosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 59
  • Votes 20

@Jerad Gardner

If you'd like to discuss the process in detail feel free to send me a colleague request and I can answer any questions you have. 

Here's a quick overview though:

Step 1. Get Pre-Approved. It's at this stage where we perform a credit check, we discuss income and assets so we can determine your maximum loan amount.

Step 2. Preliminary Market Analysis [PMA]. Once you know your limits you'll start looking for homes. Once you've found a home you think has potential you'll complete the PMA with the help of your Real Estate Agent, Contractor and 203k HUD Consultant to help get an estimate of what the property's projected value might be after the renovation is complete. The market analysis should include:

  • The extent of the rehab work required ( 203K HUD Consultant)
  • The estimated cost of the work (203K Consultant or/and Contractor)
  • The post rehab expected market value of the property (Real Estate Agent)

Step 3. Write the Sales Contract. Allow 40-45 days to close.

Step 4. Work Write Up, Cost Estimate & HUD Case #. With the HUD Consultant's help, a feasibility study and preliminary cost estimate is use to produce the SOR [Specification of Repairs]. After having refined and determined specs, the Contractor submits the bid for repairs. **Keep in mind that if the rehab work is less than $35,000 you don't need a HUD Consultant.d

Step 5. Appraisal.

Step 6. Lender Prepares Full Commitment once the appraisal and contractor's bid have been accepted.

Step 7. Loan Closing. 

Step 8. Construction Begins.

Step 9. Funds Are Released.

Let me know what other questions you have, I'm more than happy to help.

Post: First deal in the books.

Corey BlanePosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 59
  • Votes 20

Congratulations on your first deal! 

Post: Getting your RE license

Corey BlanePosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 59
  • Votes 20
Welcome! If you have any questions about mortgage financing feel free to send me a colleague request. Good luck investing!

Post: Investor from NYC / Long Island

Corey BlanePosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 59
  • Votes 20
Welcome to BP Matt! What part of North Loop are the condos?

Post: Lenders who specialize with VA loans

Corey BlanePosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 59
  • Votes 20

@Mike Hoherchak

Just to clarify you don't need experience to get into an owner-occupied investment property. You need experience to be able to use the income from the other units for qualifying. 

So if you make enough money to cover the mortgage payment, without needing the rent from the other units to qualify, then you're fine. 

Sorry for the confusion I caused there.

Post: Lenders who specialize with VA loans

Corey BlanePosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 59
  • Votes 20

@Mike Hoherchak

Unfortunately the 6 months reserves is a pretty strict rule. Fannie Mae wouldn't purchase the loan if it didn't meet that requirement.

As for a team in place, although that's good, you'll still need to show that you have actual experience managing real estate in some capacity.

If you switch to a conventional loan, from VA, then you don't need to have management experience. We can actually use the other units anticipated rent in the income calculation as well. The figure we use is based on the appraisers assessment of fair market value for rent in that area.

I'm always happy to help.

Post: New from Elk River, Minnesota

Corey BlanePosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 59
  • Votes 20
Welcome to BP Tammy! There are some great resources here. If you have questions about financing any of your investment properties I'm here to help. Have a great night

Post: 203k loan questions, equity

Corey BlanePosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 59
  • Votes 20

@John Burtle

I'm not trying to be negative but this thread is brutal in terms of the amount of misinformation being spread (not by you). BP is a great community and I know everyone wants to help but this is how the complete spread of misinformation starts.

Okay end of my rant. = )

Here's how this works:

An FHA 203k Renovation Loan will allow you to purchase and renovate a primary residence with 3.5% down payment. Let's say the purchase price plus rehab costs bring your total price to $310,000. You'll put down 3.50% of that figure.

You'll have an Upfront Mortgage Insurance Premium added to your loan amount at closing and you'll need to pay .85% on a monthly basis for Mortgage Insurance (i.e. $310,000 * .965 = $299,150 * .0175 = $5,235 + $299,150 = $304,385. This is your final loan amount.

Your monthly mortgage payment will be based on $304,385 and will break down like this:

Principle & Interest: $1,366/month (assuming 30yr fixed at 3.50%)

Property Taxes: Depends on Property

Homeowners Insurance: Depends on Agency

Mortgage Insurance: $219.58/month (calculated like this: $304,385 * .0085 = $2,635 / 12 = $219.58/month)

After 6 months of owning the home you can do a "cash out" refinance with a conventional loan if you feel the value is justified. In this example if you think the home would then appraise for $450,000 you could cash out up to 75% (for a 2-4 unit property) or 80% for a single family dwelling.

You've then free'd up your ability to buy another home using the same FHA 203k Renovation Loan. OR you can use the money from the cash out refinance of the first property to put as a down payment on the new home so you can use a conventional renovation loan that doesn't have the Mortgage Insurance (Upfront or Monthly).

Even though I'm not licensed in Illinois the underwriter requirements are the same. I'm happy to answer any questions you have. If you have further questions send me a colleague request and I'm more than happy to answer any questions you have.

Post: Private lender sent conventional loan approval

Corey BlanePosted
  • Real Estate Agent
  • Minneapolis, MN
  • Posts 59
  • Votes 20

Hi @Matt A.

Your best bet is to call the lender and clarify what you're looking for. 

It seems that they may have understood your need for financing?

If you did go to a Hard Money or Private Lender it seems strange that they would send you an approval letter for a conventional loan.

Sorry I can't be of more help.