All Forum Posts by: David Dachtera

You'd be better of getting educated yourself. Another poster mentioned $3K / mo. That would pay for your education in just over seven months, and probably save you ten or more times that by knowing how to avoid newbie mistakes.

Then, when you go to REIAs and other investor groups you'll be equipped to recognize who is doing it right and who is attending the School of Hard Knocks (most expensive education there is).

My $0.02 ...

1 Vote

Baltimore, Maryland

Quote from @Khemraj Sarju Jr.:

Investors are purchasing properties using DSCR programs which use the properties rental income to qualify them. We calculate the expenses against the rental income for our clients to approve them with out having to worry about DTI issues.

Hello,

Ok, I'm familiar with DSCR - Debt Service Coverage Ratio - as a lending criterion. It now seems to also be a new type of loan product.

Can you provide a description of a DSCR loan and how it differs from other loan products? From what you posted, it looks like it's based on the property's income rather than the owner's income.

1 Vote

Worcester, Massachusetts

I'm thinking it's a way of saying, "Cash offers only" without saying as much. If it doesn't appraise, a lender might balk.

I'd probably see about adding a replacement contingency stating that if the property doesn't appraise for the asking or offer price (which ever is less), the offer is automatically lowered to match the appraisal.

My $0.02 ...

2 Votes

Miami, Florida

Quote from @Matthew Crivelli:

Quote from @Caroline Gerardo:

Rates will be lower Monday. You are mixing up APR which is just a way to see total cost averaged over the first year.

If you switched to a jumbo loan product or non QM product you can have rates in high five/low sixes for ten year interest only. This assumes you have that FICO and reserves.

Do not shop for a high balance conforming loan the GSE's are price crazy for those sold to Fannie and Freddie.

You need a broker with options at fifty "shops"

Don't let everyone pull your credit- provide the report, the w-2/paystubs and bank statements then someone can tell you on the phone what they really can offer and how many days of rate lock.

Calling without exact information will get you cloudy results.

Multiple credit pulls won't affect the borrowers credit nearly as much as you are leading them to believe. At most, you will see a 10 point decline from multiple pulls in a 12 month period. In my experience people who are worried about credit pulls have bad credit to begin with. It's not the pulls that cause bad credit, it's being an irresponsible borrower that causes bad credit. @Dan K.

Remember that Home ("Mortgage") Loans have "shopping windows" - multiple hard pulls within 30 days (I believe) are "deduplicated" to a single inquiry.

1 Vote

Dallas, Texas

@Dan H.,

You seem to have contradicted yourself.

"the trend of appreciating markets out performing cash flow markets goes back decades, but it does not imply this trend will continue going forward"

Does that contradict or match the definition of "speculation"?

0 Votes

@Greg Scott,

Going after appreciation is not investing - it's speculating (gambling).

1 Vote

@Ross Kline,

For people starting out with no REI education, yes - losses are quite common. Even some BP Podcasters tell stories about the money they lost on their first deals. Some of them could have paid for their education four or five times with their financial losses and not only could have avoided those losses but could actually have profited enough to pay off their education with their first deal.

"Learn by doing" and "School of Hard Knocks" are by far the most expensive education out there.

My $0.02...

1 Vote

Lexington-Fayette, Kentucky

Quote from @Gonzalo Gutierrez:

Quote from @Chris Webb:

OK. Are you looking for seller financing for the existing property? If yes find out who the owner is and try to contact them and ask if they are interested in SF. List some of the benefits they can see by structuring a deal this way. Listen, listen, and listen some more. Find out what pain points they have and see where you can come up with a solution. For funding options if they do not have 100% equity see if you can get a 30% or 40% seller portion and take out a 50% or a 60% loan so you only have to put 10% down.

This is what I need.
Yes, I found a property that I like and the owner is willing to do seller financing but, he doesn't know how to.
I know this method has benefits but I don't know all of them. Also, no idea how to structure a contract, tell the title company to structure it, make sure the property has no debts, set the payme the payments, etc.

I just want to pay someone to teach me all of this so I can do it in the future

Hire an attorney to find out how it can be done where the property is.

Basically, there are two primary ways:

- You take title. The seller carries the note on the property and records the lien. Done properly, the seller can cash that note out by selling it on the secondary market. I know of at least two note buyers.

- Contract for Deed - you make payments to the seller as spelled out in the contract. Seller retains title until the terms of the contract are fulfilled.

Any good Real Estate attorney can help you with either, or suggest other possible options.

Another possibility might be Lease Option. However, some states are cracking down on that thanx to the CFPB.

My $0.02 ...

2 Votes

All Forum Posts by: David Dachtera

David Dachtera has started 94 posts and replied 4486 times.

Post: LIVE: Biggest obstacle to buying your first investment property?

Post: STR complaint water is not hot enough

Post: Looking for new real estate coach.

Post: Frustration/venting post any ideas about my situation with DTI

Post: All offers MUST have No Appraisal Contingency.

Post: What rate should I expect?

Post: Is seeking a "high appreciation" market a good strategy?

Post: Is seeking a "high appreciation" market a good strategy?

Post: Is Losing Money Normal In the Beginning?

Post: Teach me Seller Financing please!!!