All Forum Posts by: Felicia Richardson

If it's an FHA loan, the lender cannot foreclose as long as the borrower is living there and up on the taxes, insurance, HOA, and property condition. Why would he be forced to sell his home and pay the $65k?

 Sorry to hear about your friends parents. A reverse mortgage can be paid off, but the parents may have trouble obtaining financing as typically a reverse mortgage is received when borrowers have trouble making monthly payments and have little income but lots of equity. Due to their condition they may not qualify for a refinance. It does not hurt. If they do not qualify, if the home is vacant could it be rented to get income and maybe then have your friend qualify?

@Felicia Richardson I got the HELOC while it was my primary residence, a year later it was a rental but once issued the HELOC stays in place even after that change. I only know of one bank that does HELOCs on investment properties, and their rates are higher. Best to get it on primary residence.

I do a mix of both - cash out refi's and HELOCs. While I still could, I used conventional loans, can't beat the rates that are fixed for 15-30 years. Now that I do non-conventional, my rates are higher and only fixed for 1 to 5 years. 

@Felicia Richardson I highly recommend Pentagon Federal CU for HELOC. It had by far the lowest rate when I applied for it, and occasionally run promotions where you get an even lower rate for 6 months subject to a minimum draw amount of $10,000. It is interest only, I had the impression it was 10 years but somehow ended up being 15 years term. Half of my portfolio was purchased at one time or another by pulling money out of that HELOC. Technically it is only available to people associated with the military, but back when I opened mine they let you just make a one-time charitable contribution of like $35 to an associated charity and then you qualify. There is a balloon payment at the end though, that seemed really scary back when I was just starting. Now that I have a bunch of other HELOCs to pull from, I'm no longer worried about it.

@Felicia Richardson That sounds like a good plan! I definitely want to try and network as much as I can as well so I feel more comfortable to really dive in.

Congratulations!  Great start.

You can find hard money lenders by googling or online.  Vet them a bit so you know someone who closed on time, has a reasonable draw process, and finished up/closed out the loan fine.  Some lenders are less expensive but difficult to work with -- costing you more money than you saved!

Private lenders linger at REIA meetings or you might find some friends and family willing to go at-risk with you.

First off, congratulations! You are the first person that I have seen to make it through the NACA program.

Second, with the fix and flip situation, interest rates are set to go up one more time before the end of 2022. With that being the case, many buyers have been detered from making home purchases because the monthly payments are significantly higher than they were. From July 2022, prices have already dropped in metro Atlanta by 10% so we are experiencing a correction currently. Transactions have dropped by almost 40% and days on market have more than doubled. 

My recommendation is that if you do a fix and flip that it is to someone that is most likely going to be a first time home buyer, under $300,000. This way, you have a large pool of buyers. Also, what location are you thinking of? As you know, East Point is in a school district for Tri-Cities and maybe a few Atlanta public schools which deter many people with families from moving there; people with families are the largest demographic of homebuyers.

if you have any questions, feel free to text me or call me at 678-467-9126. Let me know you are from BiggerPockets.

@Felicia Richardson Its like reading a post from myself four years ago. I closed a triplex with ADU in CA under NACA then purchased a second renovation heavy property once my primary was stabilized. With 25k, you have options with fix and flip lenders or long term rental options. Happy to help and answer your questions as Ive been in your shoes.