All Forum Posts by: Lynn Z

Check out Fannie Mae Desktop Underwriter guidelines for what they're looking for because that's all the lenders are doing -- selling to Fannie Mae and Freddie Mac. I had terrible times with my triplex and a duplex with a cottage detached in the back yard (with it's own lot); both considered unconventional. That's 80/20 LTV because who can pay PMI? Cross collateralization is the only way I know to buy anything with no money down. Also, living in the multi helps the lender feel better about the property. Of course, you lose owner unit writeoffs if you do that including that portion of depreciation.

The points ffrom my lender changed from 1 to 21/2 the day of closing by because the loan officer claimed it showed up "flagged". Lenders don't like multi like tris and quads because they know they're harder to get rid of and they are...because Catch 22 they're harder to finance.

Don't forget insurance.. Anything over 2 units, State Farm sees in a different category in your rental package. When buying older properties, make your first call to your insurance agent before you offer and close the deal. And never lie about number of claims to any of them. They don't hesitate to drop you in a minute.

Also, on a mult--check with city zoning and make sure it's grandfathered to have the units being sold to you with a certificate. Alot of neighborhoods downgrade zoning and don't address this certificate and after you own the property, the neighbors complain and they want you to reduce your property to a duplex or single family. This matter can cost you time, trouble, and money. Should be in the contract for the seller to "fess" up about the zoning. Nobody helps you on this. Be careful.

selling a 2/1 brick in low 90's this month in great neigborhood. Move in ready. The average sale of condos in one good area is in teh 70's. Six major downtown condo/conversion/historic building projects getting off of the drawing board. Also, know of 2 new houses in a decent area for $110,000. One in an emerging neighborhood that needs cosmetics, light remodeling just sitting for $110,000. Buyers market here in South Carolina and even in Charleston it's changing a little. Not as easy...people are keeping $$$ close to the vest.

New York didn't really need to tell us, did he?

county appraisal office is a great place to check real estate by street, owner, neighborhood. They limit you to one half hour in our office as they only have 3 computers and there is no help...working your way through the computer software. Also, they are online but are also limited to street search only (no owner name) and make you reboot after 24 hits regardless. Appraisers hang out in the appraiser's office and they are alot more fun there than out there working--a wealth of knowledge and they do keep up with everything that sells or is selling. Check the transfers in the Sunday paper if provided (by zip code in our state) and ride by to see who's buying what and at what price. That information is about 30-45 days old but good nonetheless.

keep plowing away. the more information sources you have the better you can protect yourself when you do leap. I talked to an investor last week that buys 2/1's, 800-900 sq. ft. and insists on 2 year leases. Looking to buy in the 60's. Less appreciation rate due to the small sq. ft. but a good place for someone to have a niche.

I agree. We've had a renters market for 5 years in South Carolina. Landlords really valued their tenants because there weren't anymore of them. The past 5 months the lifting of the veil of that hardship has allowed landlords to increase rents significantly for the first time in years. That's why washington is blaming rent increases on the increased higher cost of living. That doesn't spell inflation...It's the other side of a business cycle. Where were they when you couldn't find a renter and everybody with $1 in their pocket qualified for a home...which many can't afford to keep?

There's a book titled "Job Shift" that talks about the overall shift from the old job expectation of a lifetime work relationship to workers being contracted for individual skills. It's a little scarey but excellent reading on this subject.
Look at how fast corporate america is escaping pensions for example (suddently "they can't afford them) while congress sits back and helps that along. In my field, company loyalty to employees seemed to die 20 years ago.

that's true, and this was a 2/1, upgraded, held for 5 years, new appliances, stack, and they'd taken in the screen porch to make a nice laundry room. Great lot, etc. Sometimes with a nice house in a nice neighborhood, investors hate selling and when they do, a low ball irritates them. Someone had told her the seller would go "back and forth" so I told her that wouldn't be happening and she took the first counter (which was hard to pull out in the first place). They wouldn't have countered back. Fair market value to them was slightly below where they priced it because, after all you only really take the money home when you sell or refi. Also, they buy these houses just to pay property taxes every year so that is a factor also. The county gets the money, really.

Long term investors (30 years) target a neighborhood that they think they know will appreciate. Then, they ride the neighborhood every week, call/quiz realtors, go to open houses, until they find a good buy. Then they buy low, rehab well, and sell high. They take their time but it takes them time and it's a lot of money tied up.

They have a termite guy crawl the house before they offer. Also, their heat and air guy gives them an opinion. Line up a banker that will do quick study of the house and approve verbally a 5 year balloon then offer cash on the contract -- get the long term investment mortgage later.

Realtors know who the "investor" realtors are. The ones buying and rehabbing houses successfully.. Some of them have good subs they've used in the past and those of the broker's lists at the office. Some are willing to share if you have a relationship with them. Most realtors don't invest so its a waste of time with 90% of them unless you call on a listing. Good Luck.

Just took a lowball offer to a seller that is the "lowball queen" and she was highly incensed that some inexperienced buyer would think so little of her fine property to offer $10,000 below her asking price. The buyer was receiving bad advise from someone "behind the scenes" I fear. You have to be careful who you are lowballing. If it's an investor with a reasonable price they're likely to not counter so....one has to know these things. Know who you're playing with.

I lived in Del Rio and El Paso for a long time and could barely find a job because everyone is bilingual. With 15% unemployment, Mexicans migrated seasonally at that time and part of the package from American companies like canneries was unemployement being paid when they returned home.
I'm sure in Florida good, qualified workers are displaced though experienced because they aren't bilingual and their jobs suddenly require that language skill. Think about your life it suddently you couldn't get a job in your state or work without being fluent in another language. Sounds great, but it isn't.

Mexicans are hard working and come here because they are poor and have families to support. Religion and cultural attitudes are great influences in their migration to the U.S. It is presumptuous of us to assume we understand their culture and what motivates them to migrate to the U.S.

I am opposed to open borders. Becoming an American citizen should be difficult for everyone..not easy. That would dilute it's value.

very good info, Michael. There are some circumstances with tenants that may deserve mention. I have a great, clean, professional who's rented an apartment for 2 years who isn't ever going anywhere. He always pays the rent but try as he may, it is always when he gets paid on the 15th. I let him know by the 16th not to forget and lay out the consequences but he always pays his late fee and 99.9% of the time there is no problem. You have to offer to have some tenants pay twice a month, for example, as it is helpful to them and there is no problem as long as you know they're good for it. I don't want 100% hard and fast rules regardless because tenants are trying very hard to make rent as we are trying hard to pay mortgages.