All Forum Posts by: Franco Li

@Andrew Postell

Understandably, conventional lending won't have use for further due diligence since the lenders just recycle them anyway - i.e. securitizations/loan sales - but I would think some private lenders may be able to. Nonetheless, I think you've answered my questions. In short, this product will have high barriers to entry, and may not work. Thanks again!

Thanks again! 

1) Seller can ask for anything they want, but should probably have some form of written terms. Even on purchase agreement extensions, it should be a formal process. At least from the buyers perspective to add a protective element.

2) Moving on is sort of complicated depending on how your agreement was drawn up. You may lose the EMD - i would consult with your legal counsel.

3) I do think this is a major defect that should not be covered by a simple "sold as is". I would strongly recommend speaking to the listing agent about knocking down the price or asking for recovery. I think you have a high probability of getting your EMD back because it seems like a good argument about the mold being a health hazard.

4) You better not lose your EMD...I will fight them insistently on this. Can't make you buy a home that isn't up to your standards, irrespective of what they say. Especially if they lied about mold before.

Good luck!

i.e. local bank, local mortgage providers

90% LTV seems aggressive. I have experience where local lenders and credit unions can reach there, but never seen higher than 85%. Try those first.

All,

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Sincerely,

FL

@Chris Mason

This sounds super interesting. If you'd like, we can actually try working on this together. I have a team of engineers and business professionals who can probably make something of this. 

@Jay Hinrichs 

Agreed! I don't think a conventional lender will use this, largely because they'll recycle the debt anyway - i.e. securitization. 

But I am looking for either HML, or even local lenders and credit unions who may benefit from this. Honestly, this is no cost to a lender or broker, since the cost isn't charged to them and will carry down to the borrower. Appreciate your feedback!

Closing costs generally vary from place to place, you can probably consider anywhere between 2-5% of your purchase price - I know its not saying a lot, but the costs really differ between counties and cities, and deal-to-deal.

On the capex, i usually do 5% of my rental, and it covers pretty much everything I don't expect. This also depends on your risk appetite and how much you want to put in your pocket!

Best of luck brother. 

You can probably do that, but to be honest, using your fiance's good credit like that is sort of a waste. When you decide to leverage on your next investment opportunity, I assume your fiance will also be on the investment. The lender will most likely review hers and your liquidity and capability to repay, so it makes less sense to keep stacking on debt to reduce that advantage. I would try to save money at this point, or find a lender who can refi for you. Then I will use your fiance's good credit, and income potential on top of yours to leverage on your investment property. Good luck!