All Forum Posts by: Dado Vucak

@Nikki Closser

Oh okay, that makes sense. Invest in what you know! Also helps that the Michigan market is very reasonably priced, at least for us folks on the west coast.

Thanks for sharing!

@Nikki Closser

Congratulations! Amazing first deal - thanks so much for sharing.

Being that you’re in Seattle, why did you guys choose Michigan? Are there any certain numbers or attributes you looked at when evaluating different markets?

Thanks!

I'm willing to bet that many of you, myself included, leverage MS Excel for a wide range of tasks such as managing rental properties, deal analysis, workflow, etc. I'm also willing to bet that most of you probably hate it because it's manual, repetitive, and time-consuming. 

My background is in technology - specifically Business Intelligence and Data Engineering but throughout my personal and professional work experience, I've created and automated some pretty powerful and robust workbooks and dashboards (Metrics/KPI reporting) using Excel. Microsoft Excel has a pretty neat feature on the backend that very few people leverage, VBA. Visual Basic for Applications (VBA) is a programming language within Excel that you allows you to automate your workbooks to remove the repetitive human input that may be involved in a lot of what you're doing.

With that said, if you're struggling with anything MS Excel related, let me know! I'm happy to provide some input and hopefully automate some of the manual and repetitive work that you're currently doing. 

Thanks! 

@Natan Gutt In most deals, it’s a 50/50 split between the work involved and the money invested. However, since you’re putting in the effort to find, vet, and manage tenants while also fronting 50% of the down payment, I think it’s fair to ask for 75/25 or 70/30 if you like round numbers.

If you plan on making a partnership out of this, make sure to set expectations and align your goals and ambitions before you do anything else. It's also worth noting that before making any partnership official and sealed by print/law, you should do a couple deals first and see how you work together and play off each other's strengths and weaknesses. You may find that the two of you simply don't work well together. It happens, not the end of the world. But at least you don't have to deal with the pains of dissolving an LLC that you started together.

@Julee Felsman Okay - that's great news. Let's get in touch to chat more about these numbers! 

@Julee Felsman maybe I am misunderstanding but that would only work if you don't have an existing mortgage, correct? We already have an existing mortgage on our primary residence. 

What I really want is a true Jumbo at 90% with a limit that's within the price range that we're looking at. I'm sure it's out there! I may just need to keep calling around. 

Hi @Julee Felsman

Thanks so much for your quick response - I knew there would be options out there!

We're shopping in Central Washington actually. Most homes that we're interested in are around the $800k mark. Sounds like I just missed the train on the perfect product offering. Have there been any discussions on pushing that $650k limit back up?

Hey BP -

I'm looking for some guidance and advice when it comes to seeking out lenders who will accept a 10% down payment for a second home/vacation home where the loan amount happens to be greater than the maximum amount for a conventional conforming loan of $510,400. 

Is this even possible? I know a number of you out there have used this strategy but I'm curious if loan amount was greater than that $510k figure requiring a jumbo loan, and if so, we're you able to do less than 20% down?

I've done my research, I know that I need to look at smaller banks and credit unions with portfolio loans. I've called about 15-20 different banks and CUs (primarily local but a couple we're outside my local area) and every single one has had a similar message. Second mortgages on vacation homes over the $510k will require a jumbo loan, which as a result, will require a 20%+ down payment. 

For what it's worth, I had one CU actually tell me that they had an in house product they offered prior to COVID but have since retracted that from their product offering. 

Anyone here ever dealt with this before? I can't imagine I'm the first person to run into this roadblock. I'm sure there's ways around it - just looking for some guidance.

Thanks!

@Mathew Wray

I’ll definitely check that Facebook group out. We discussed a rent back period but the buyer needs to move ASAP. Unfortunately that won’t be an option for us but I certainly appreciate you throwing that out there!

@Dan Stephens

That would be ideal! I noticed it said no pets though. In my post I mentioned us having a German Shepherd. Is that something we can discuss with the property manager?