All Forum Posts by: Elif Erguclu

@Elif Erguclu there is some good advice on the thread for you, but it sounds like the agent might be doing the equivalent of a chef shopping at the grocery store for food to sell at a restaurant. Simply put, throwing retail priced properties at you when you want to buy at wholesale prices.

What are your investment goals for this purchase?

@Elif Erguclu, HomeReady is about 30% more work for the loan originator compared to FHA but doesn't pay any better. Hate to be blunt, but there you have it.

If that "more work but no more pay" dynamic weren't in play, we would see a LOT more people using Fannie Mae HomeReady, Mortgage Credit Certificates, et cetera. 

For broader context for those curious, prior to 2013 it was lawful for firms to pay loan originators more depending on the structure of the transaction. Rather than using this to incentivize loan originators to give people better deals, firms mostly used this to incentivize loan originators to offer higher interest rates, ARMS, and other crummy 'features.' We saw this depicted in The Big Short, where the mortgage guys talked about how they wanted people with crappy credit, lower down payments, etc, because they could beat them up for those factors and give them garbage mortgages.

So, as a consequence, now we get paid the same regardless of how much we bust our butts to give you a better deal. For many loan originators, that just means no busting butts for anyone.

@Elif Erguclu, yup condos need to be FHA approved to use FHA financing.

Why not do 5% down conventional, or even maybe 3% down conventional, if that's what you have your eyes on? FWIW my firm is killing it with Fannie Mae's 3% down option since we started offering it. :)

There are plenty of good investment in that price range in MoCo and sound very much like you are describing then. 2/2 condos in the mid 100s with a 200 fee are very good for cash flow plays in MoCo.

@Elif Erguclu

Welcome. Fill in the foundation below.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 100 past ones to catch up on.

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com

Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

Consider checking out HUD homes for small multi's owner occupied gets first crack.

You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good Luck

Paul