All Forum Posts by: Dave P.

As I have grown in my REI journey, I have been able to join a Massachusetts based group of 55+ real estate investors of varying backgrounds. Recently I sent a thoughtful email to the group about my desire to build a long term relationship with a private money lender in which both parties can find some value. I told them that I have identified some solid property and have run the numbers using the BP rental property calculator. I got some positive interest. Should i craft a business plan or some other document or am I overthinking it? Can it be as simple as "I've identified this property and wonder if you will give me the 20-30 percent in down payment money and in exchange I will give you x percent in interest. Thanks for your constructive feedback

Hi JD, I reviewed your feedback again and this part I did not quite understand;

"from about 110 on the lower appraisal to about 135 on the higher appraisal" Are these hypothetical numbers? Please clarify. Thanks.

Thank you JD for the feedback, 

Thank you both for the valuable feedback!

I am currently in the process of applying for a HELOC. Today, I was given an appraisal of 145K on a house I bought for 135K 2 years ago. No one actually came to the house instead comps were done. With another lender earlier this year, the house appraised for 183K, Someone actually came out to the house and viewed all 3 units inside and out. I did not go with this lender as the product turned out not to be a HELOC but instead a refinanced loan product. This credit union I am working with is willing to do a full appraisal for 450 but does not guarantee that the value will be different.

Here's my question;

Should I pay 450 dollars for a more thorough appraisal, negotiate and have lender pay for this or go with a different HELOC lender?

Thanks.

All good points. Honesty is the best policy. Martin, thanks for sharing though. I am sure you are not the only one to want to use this approach.

Thanks for all your feedback. I am now pursuing a HELOC with a local credit union.

Hi Chris,

The house appraised for 183K. I am shopping around this point.   

As a BP PRO member, I am fortunate to get feedback from the best and brightest. 

Here's the situation;

I currently own a 3 unit. I secured it 2 years ago using a VA loan. I am now seeking to purchase more property and waned to access the equity off this property. From the sake of convenience, I decided to approach the lender of this property what I wanted to do. This started the process of having the house appraised which showed a value of 50K in appreciation. We continued the application and I have submitted tax returns etc and all looks good. However, as I review the application and fees and want to make sure all is fair and can I do better with a different lender?

Here's my question; Is this the right lender?

Interest rate is 3.99 for 30 years for a loan amount of 189,039

Origination costs are $2,293

VA Funding Fee is $6,039. This is the biggest expense. I am interested to hear if going with another lender removes this fee or not.  

Initial Escrow Payment at Closing is $2448 

Total Closing Costs are $12,841

Closing Costs Financed (Paid from my Loan Amount) I am wondering if this is the norm. Ideally I  want to be able to have more money at my disposal if needed.

Thank you for your feedback.  

Thanks John T. Solid advice. I just  revised my ad based on reading this post.