All Forum Posts by: Joe Smith

Oh man, the oxygen is being "deleted"...

I'm a big fan of oxygen too. :crying:

Why not much talk on BP? Two reasons, I think.

1) After you pick up 4 properties the down payment goes up quite a bit (10% vs. 25%). A lot of contributors on BP have already surpassed the 4 investment property threshold. If you're going to put down 25% on an investment property, there are better deals out there for you than what Homepath has to offer (this leads in to reason 2).

2) A lot of the Homepath properties are "good" deals, not "great" deals. It is very tough to make the 2% rule to stick to Homepath SFR's. Most contributors on BP are (smartly) more demanding than what you can find in the Homepath listings, generally.

Looking for any feedback - positive or negative - on dealing with mortgage lenders for Fannie's Homepath program for investors.

Has anyone purchased an investment property through Homepath? Any lenders you'd recommend or stay away from next time? Any input is appreciated.

Hey Tom - thanks for the reply.

Yep, I'd assume if someone is on the title of the house, they'd be considered part of the loan. That's why I'm curious if there's a reason I couldn't buy 4 properties with my name only on the title, then do the same with her.

There's nearly a hundred lenders on the Homepath website, so there *should* be plenty to choose from.

I'm posting another thread today asking for feedback on Homepath mortgage lenders, but don't expect a ton of response. Info on the Homepath program is sparse on BP for what I suspect are a few reasons.

Getting ready to apply for pre-approval on a Homepath (Fannie) investor mortgage and wondering if applying jointly or seperately is the way to go.

I'm sure a lender can answer this question, but I'd like to have my ducks in a row before approaching one.

Their rules are 10% down for your first four investment properties, then 25% down for any property thereafter.

My question - could a married couple apply for these loans seperately, provided their individual FICO's and income support the loans, allowing 8 properties total (4 each) @ 10% down?

Can you realistically expect to find properties on sites like Trulia or Zillow that are a good starting point for making offers?

Obviously, properties aren't going to be *listed* for a price that approaches the 50% rule, but are these sites suitable for identifying properties you might be able to make offers on that may cash flow at the conclusion of a deal?

I'm looking for a few properties to buy and hold, while incorporating the 2% and 50% rules so often referenced on this forum. I'm not looking to start a marketing campaign or mass mailings, nor do I expect to trade my career for REI. Given this info - where should I look?

That's a good point regarding title insurance - most title companies will not insure title on properties sold at public auction for at least one year after the tax deed has been recorded.

Trying to sell to a cash buyer doesn't sound particularly appealing. Without title insurance, it sounds like it would be difficult to get a buyer with a tradional mortgage loan.

I wonder if there are title companies that are able to insure a title sold at auction sooner than a year after the sale. A title company that specializes in auctioned properties, perhaps?

Otherwise, it sounds like your options are: find a renter for a year, let the property sit dormant for a year, or find a cash buyer. Does that sound about right?

Good points regarding the current occupant. I'd like to confirm the property is vacant while conducting DD. Evicting someone would not sit well with my conscience - I know "someone" would do it anyways if they won the property. Better them than me. :wink:

I appreciate your response.

This is in fact a county tax deed auction, and there are a couple hundred properties that will be sold.

The terms for the auction (former owner can not redeem after the auction commences) is the same for all of the properties being auctioned. Given the starting bids for the properties - $5K for a $120K property, for example - it appears this is the 1st time these properties are being auctioned.

My main concern is this - if I won a property, I'd like to know I could sell it within a few months. I'd hate to tie up a big chunk of change for an extended period of time.

Want to be sure I'm reading this correctly. A tax deed auction I'll be participating in has the following statement regarding a redemption period:

<to the auction...>>

If I'm reading that correctly, there is no redemption period to speak of during and following the auction, correct?

If you won such an auction, and there are no other liens against the property, it should be yours free and clear following the auction, correct?

Following such an auction, what complications might arise that would prevent you from reselling the property?

I understand that legal action to challenge a tax sale must be commenced within one year of the tax recording date (at least for this county). Does that mean you'd have to hold the property for a year, waiting for this limitation to expire, before you could sell it?