All Forum Posts by: Ben Kevan

Hey Bryan,

Understood. But the ones I've contacted (about 6) have flat out said nope, we can't fund you because you're a Californian (I knew we were bad, but really? that bad?) or they did not service the loans, therefore they couldn't make money on origination or sell on the secondary market (high cost loans @ low value).

I really didn't think it'd be this hard to purchase an income property.

I've contacted USBANK in hopes that they do not have these restrictions in place. I have one other contact at a local bank/broker (I haven't checked to see what they are, but they have a low loan limit which makes me believe they are not the servicer).

I just sent the email to the seller letting him know about the wells financing, and that I've already contacted another lender (this is the 4th one).

Mr_Investor I want to be that 1 arm'ed Mt Everest Climber :o). Also, is that a UFC beanie? It looks blue, so I'm guessing it's a few years old when "The Ultimate Fighter" first came out. I'm a long time Jiu-Jitsu / MMA guy (as are a few others that I've come in contact on this board and one which is local to me).

Whelp.. lets hope my long drawn out email to USBANK gets them to "tell me how it is" up front, and not bring me on a roller coaster of financial emotion lol.

Mitch,

I still have some hope.. I've opened up inquiry with Bank of America (just to find out what their restrictions are). I'm learning a bunch as I go, and have a LONG list of things to ask prior to even getting deep in with finance company.

I'm really trying to hammer away at these seller finance options, and when I open up the discussion with the seller about it, then I'll probably contact an attorney or one of the realtors I have as a contact in the area, to see if she'd be able to assist (they have internal legal teams).

For now I'm holding on hope.

The smaller banks don't want to fund because their net profit on origination is too low. I've had 3 local banks tell me outright that they weren't going to make enough on origination on a loan amount under 60k, and just nulled the loan application at that point.

I had one guy start the process, did the appraisal and everything, then the risk assessors told him that they wouldn't let him do it because they wouldn't make enough on origination (even though they wouldn't put it on the secondary market, and would hold the loan to term).

I wish I had enough cash to buy and hold at this point. But there is no way I'm going to touch my active 401k.

Another complexity for the local bank / credit unions is that I'm in California, and the property is in Ohio. Many of them will only lend to residents of the state (due to certain state laws or restrictions).

I may talk to some local credit unions.

If not, then I'll just have to wait the 6 months for the property, and hopefully save another 15k in capital for a second property. This is of course assuming that the seller will:
A) Not do seller financing (I'd have to think of LC vs Deed)
B) Is willing to collect the rents until July when I could then "qualify" to get the property.

My credit has taken a pretty nice hit from all the loan applications I've been popping up, so that kind of sucks.

Anyone know how long those inquiries are detrimental to your score? Is it 6 months, or 90 days? I should ask the finance company that.

Just in a somber mood right now haha. Maybe this is a sign for me to look elsewhere (local to me maybe? that'd force me to save that other 15k to come down with 25% down for a property in the Bay Area (which probably wouldn't have near the same cash flow .. yeah not doing that)).

Wells Fargo said that they could not finance an investment property that has been purchased by the seller within the last 12 months.

Similar to the 90 Day FHA guideline, but 12 months for investment properties.

I'm going to try Bank of America next (to see if they have restriction like that). This first deal has been a huge headache, but I am going to be persistent on getting my first property so I can start feeling the ropes as a landlord.

It's really not a major deal, I just want to finance about 44k. Didn't think it was going to be like pulling teeth. haha.

I have just received notice that my loan was declined from my conventional bank.

I'm considering approaching the seller about his options for seller financing. How should I approach this?

I know this is generic, but I'm going to poke around this part of the forums to get some idea's.

I'm just a bit flabbergasted and irritated right now with the news I just received from the bank. This first deal has been one hell of a ride.

Another one today:

http://www.cnbc.com/id/41355854

Another article:

http://www.mortgagenewsdaily.com/01312011_vacancies_and_homeownership.asp

In Cleveland they have the Land Bank which is purchasing these properties and selling them to investors to flip (per their code, during an agreed period of time) or they are marking them for demolition to reclaim the space for certain usage (ie parks / green gardens etc).

I think Cleveland is doing a pretty good job.

I live in Fairfield California (which was ranked 8th biggest decline in prices when combined with Vallejo).

I got a pretty good deal on my primary residence :o) .

But yeah, let the free markets be free. It should have been done in 2008 when markets were in a free-fall anyways.

I would honestly stay away from Stockton / Tracey. Farming in CA has been hammered, and until exporting from CA and the US is favorable I don't see it getting better.

Antioch isn't a bad place to get started, and neither are some parts of Sacramento. You can find some pretty good deals in Sacramento, but some are in area's that aren't so nice.

The distance won't matter too much if you don't plan on managing the property yourself. What's your goal? Are you going to manage yourself?

I'm just getting started (Solano County guy here) and decided to go out of state (I didn't have much up front capital, so finding a house in the 100k range is all I could really afford with the 25% down and keeping a repair / 6 month mortgage buffer).

I should be closing in about 3 weeks and am anxious as hell