All Forum Posts by: Emmanuel Ola

 Thanks so much. 

 Thanks. I sent you a message. 

 Thanks so much for your response. Will check UNIVEST out. 

 Thanks, I've explored the possibility of raising funds from family and friends but didn't work out. 

 Thanks so much. I will reach out to my local credit union

I recently purchased a burnt building and I'm eager to rehab it. The city has already approved the permits, and the cost to rebuild the 1200 sqft. house is estimated at around $120K. However, I'm short on cash (will be putting $20k of my personal money into this)  and I am exploring creative ways to source funds for the project.

I've been quoted for a $100K HELOC on my primary residence with a 30/1m ARM at a 13.25% rate and APR, with an interest-only monthly payment of $1,016 and $3,825 in points. This quote is from Better Mortgage, but I'm wondering if anyone has suggestions for other lenders who might offer better rates.

I did explore a construction loan, but unfortunately, it didn't work out because the lenders said this is my first time constructing, and they were hesitant to move forward.

Once everything is said and done, the total cost of the property will be $210K. Comparable homes on the street have recently sold for at least $340K, but those homes have a maximum of 6,000 sqft. My property, however, has a 17,000 sqft lot, which offers potential for a future multi-family development. While I don't plan on flipping the house, I intend to use the property for short-term rentals (STR), and based on my research, it seems like it will perform well either as an STR or a long-term rental (LTR).

Any ideas on how I can source the financing or recommendations for better lenders would be greatly appreciated!

Currently, my wife and I own a house that we purchased for $346,000 (4 beds, 3.5 baths) 7 years ago in California, which is now worth $606,000. The house is approximately 2,556 sqft. Recently, my wife and I came across a new home under construction, set to be completed early next year. This new property is roughly 1,600 sqft, with 3 beds and 2 baths.

We see this as a unique opportunity, especially considering how rare it is to find this price for new construction in the California market. We've decided to make the new construction our primary residence after the purchase. Initially, we bought the larger house 7 years ago because we had family members living with us at the time. Now, however, we no longer need that much space. Most importantly, we view this as a strategic move to grow our real estate portfolio. The plan is to move into the new home, live in it for 2 years, and then repeat the process of purchasing additional properties.

Additionally, while we continue to build equity in our current home, we plan to rent it out. The rental income will more than cover the mortgage and still provide positive cash flow, which is rare in the California market, making this a great opportunity for us.

However, underwriting has expressed concerns about us moving from a presumably larger home worth $606,000 to a smaller one worth $376,000. My loan officer agreed that providing a lease agreement before closing will help, but I also need to provide a solid reason for why we are downsizing to this extent.

What reasons can I give for making such a significant downsize? Is there anything specific I should be looking out for?

Hello,

I am in the process of purchasing a property for $160k and plan to put 30% down with a DSCR loan over 30 years. My goal is to pay off the loan within 5 to 10 years.

I’ve spoken with a broker and received the following quotes. Which of these scenarios do you think is best, considering my intention to pay off the loan sooner?

Scenario 1:

• Rate: 9.375%
• Monthly Payment: $1,185.31
• Closing Cost: $12,768.53
  • Broker Fees: $2,417
  • Lender Fees: $2,170
  • Cost to Buy Rate Down: $0
  • Escrow Fees: $2,797.50
  • 1 Year Hazard Insurance: $1,044
  • Impound Account: $1,598.04
  • Appraisal Fee: $500
• Down Payment: $48,000 + $10,526.54 (30% down + closing costs)
• Total Cash to Close: $58,526.54

Scenario 2:

• Rate: 8.875%
• Monthly Payment: $1,144.87
• Closing Cost: $12,768.53
  • Broker Fees: $2,417
  • Lender Fees: $2,170
  • Cost to Buy Rate Down (1%): $1,120
  • Escrow Fees: $2,797.50
  • 1 Year Hazard Insurance: $1,044
  • Impound Account: $1,598.04
  • Appraisal Fee: $500
• Down Payment: $48,000 + $11,646.54 (30% down + closing costs)
• Total Cash to Close: $59,646.54

Scenario 3:

• Rate: 8.625%
• Monthly Payment: $1,124.87
• Closing Cost: $12,206.54
  • Broker Fees: $2,417
  • Lender Fees: $2,170
  • Cost to Buy Rate Down (1.5%): $1,680
  • Escrow Fees: $2,797.50
  • 1 Year Hazard Insurance: $1,044
  • Impound Account: $1,598.04
  • Appraisal Fee: $500
• Down Payment: $48,000 + $12,206.54 (30% down + closing costs)
• Total Cash to Close: $60,206.54

Scenario 4:

• Rate: 8.375%
• Monthly Payment: $1,105.03
• Closing Cost: $12,768.53
  • Broker Fees: $2,417
  • Lender Fees: $2,170
  • Cost to Buy Rate Down (2%): $2,240
  • Escrow Fees: $2,797.50
  • 1 Year Hazard Insurance: $1,044
  • Impound Account: $1,598.04
  • Appraisal Fee: $500
• Down Payment: $48,000 + $12,768.53 (30% down + closing costs)
• Total Cash to Close: $60,768.53

Which of these options do you think is most suitable, given that I plan to pay off the loan sooner rather than later?

Thanks!

Hi everyone,

I live in California and I'm considering investing in real estate in Shreveport, Louisiana, especially since there's been recent news about the popular musician 50 Cent investing heavily in the city. With his involvement, it seems like Shreveport is gaining momentum and attracting new investments.

1. Is this the right time to invest?

2. Which areas of Shreveport should I focus on for the best returns?

I'm particularly interested in cash flow + long-term appreciation, but I'm also open to short-term gains if the opportunity is right.

Any insights, personal experiences, or advice would be greatly appreciated!

Thanks in advance!

I’m a new investor myself, based in Bakersfield, and I’ve focused my investments here. In my opinion, Bakersfield remains one of the most affordable cities with a population over 400k, especially compared to other cities in California. No matter where you invest in Bakersfield, property values are likely to appreciate. If you’re unsure, just take a look at Zillow or Redfin to see how much homes here have appreciated over the last five years. Like any other city, it’s all about finding the right deal. Feel free to connect if you’re interested in Bakersfield—I’m always looking to connect with like-minded people.