All Forum Posts by: Joe Jung

@Brian M. I'd be interested in their contacts.

Are they a full service (i.e pay for the houses utility, help with rehabs, etc)

What are their fees?

Hello everyone,

Pretty self-explanatory as title states. I have searched far and wide in BP and Google and while reviews may be helpful, no one has given a solid recommendation aside from few on the forum. When I reached out to them directly, they fired the company they recommend.

I currently have 3 SFH, 2 are ready to rent, 1 needs fairly significant rehab and one duplex that is stabilized. My current property manager hasn't even started marketing one of the properties and would not get back to me about the rehab. He literally doesn't have any actions taken until I call and I call once a week. I even emailed him what the plans are but when we're on the phone, he always "forgets" what was sent. He even has me turn the utility on and off and sends them to the home address. When I ask why it hasn't been paid yet, he states it's because it's my responsibility (which I would have sent to my P.O Box or e-bill if that was the case).

Any have recommendations for me? I tried Realty Trust, and while they had great property management team, they nickel and dime you for everything. Currently with Northpoint and I would stay away as far as possible.

Awesome.  Thank you for the answer everyone. Already connected with @Chris Wharton and can confirm he is awesome for anyone wondering.  I'm a Realtor in Washington State, so I know a good lender when I see one.  

Hello Everyone,

I hoping to get a little bit of clarity on delayed financing. I currently have a HELOC on my primary and will those funds to pay cash on a home. Afterwards, I want to do delayed financing, but I have three questions.

1. Will delayed financing allow me to use future income (i.e before I find a renter to offset my DTI) OR will I need to start the process after placing the tenants? I'm having a property manager take this so it's pretty important for me to communicate this with them so the tenants are aware. I

2. Will I only need one month of bank statements? I used my heloc to paydown a substantial amount of credit card debt to raise my credit score a month prior. Finding and locating copies of those checks will take some time so I was wondering if that would be required so I can get it ready.

3. How can I add the rehab cost to my closing statement so that I can refi my repair cost as well? Do I HAVE to have a contractor lined up ahead of time to use these funds as part of my delayed financing? Will buying a multi-plex also limit me to only 70% LTV?

Also a side note, if anyone knows a community/local bank that allows no seasoning for cash-out refi or how can I finance more than 10 homes after I max the conventional soon in Cleveland, Columbus, and Cincinnati, that would be great.

Thank you.

Glad this eventually got a few replies.  Thank you for sharing everyone!  Still looking for a good hard money lender myself, so the search continues.  I'll definitely check out Flatiron Capital.  Thank you, Waldy!

Hello,

Haven't checked BP in a while!  Thank you, Chelsea, for sharing your experience with the community!  I know I tried to do an insane amount of research, but like Phillip, came up with nothing.  Trustpilot isn't trustworthy since they literally recycle reviews and there was the same user who gave few wildly different stories.  That being said, I did get in touch with a Real Estate Agent in New Jersey that used them, so I know they're legit, which is when I pulled the trigger.

Unfortunately for me, the person I was working with never followed through, and for me, you get three strikes with 3-day intervals.  

Thanks again!  Now we have resources for others that might be looking.  

These are all solid advice.  Just know that most official people do have to pass a test and register with the state.  I won't go into how hard or easy, but you can google that state's website and look up their license number; whether that's real estate, attorneys, or lenders (the exception being hard/private money lenders in most states).  

Key thing is to remember website should end in .gov when looking up these licenses.  The only exception I can think of is

https://nmlsconsumeraccess.org for mortgage originators.  You can see what kind of violation if any these people may have had.  Be nice and let it go if they just forgot to do their continuing education by a few months.  If they're good, they're busy.  At least, that's my perspective.  YMMV.  But if you want to use them, but have some serious offense, ask them about it.  

As for the questions of how you know the home exists?  Your real estate agent has an ethical duty to you, but if they're trying to scam you, you can go to the county website, put in what's called an APN number (that's what we call it in my state) and plug that info or the address.  It'll show you the current seller/owner, the record of sale, square ft last reported to the county (some people make improvements without permits), legal description, and more.  Kinda freaked me out to see how many things are public.  I usually google it like this, "county name tax assessor".  Now if it was a super elaborate scam and you want to see if it's still real, you can use google street view, but that can also be outdated.  The best of course is looking for it yourself, but I just closed on two properties sight unseen with a trusted real estate agent in the Cleveland area, so knowing a reputable realtor is important.  If you don't feel like working with a local lender, go with a big bank that can usually lend in all 50 states.  You know these are "safe", but may not have the best terms.  Credit Unions are hard because they sometimes have requirements to be local or working there etc, but I'm sure you can say you work as a landlord or "worship" in Ohio, which can sometimes be used as part of the requirement for membership.

Hi Jim, just bought one in Cleveland.  I can get you the lay of the land of what I learned if you're interested.  I did use a RE Agent, but he was new.  I did that so I can establish a relationship for the future.  

Let me know if you're interested in connecting.

Hi Marcus,

I would like to add some input into this for you. I'm relatively new to real estate investing, but I think I can make a case for your HELOC vs Cash-out.

As you mentioned above, I think it's worth considering a HELOC because of the points. I used to sell HELOCs (can't tell you specifically here) and took a mortgage class just to get some understanding, but I never registered, so I want to say up front I'm not current in all the news., but many credit unions offer no fee HELOCS and no annual fees. I'm not sure how much you're taking out, but for a HELOC that's about 60k at 4%, you're paying a little over $2000 in interest. Now if you're planning on selling the property in about 4 years, you have may have saved money on your fees and potentially saved money and actually paid towards your principal. There are other misc fees when you close, but that's negligible. There are also HELOCs that can offer you fixed rates after you pull out a certain amount. Fifth Third bank has great resources on these so I would check out what they say. Not sure if they lend in Arizona. You can also consider a Home Equity loan. You'll probably pay more interest, but it sounds like you'd save money on the Cash-out in terms of rate since it may also lower your current first lien.

But remember, the beauty of the HELOC is this: if you need to take out funds in the future, as long as you're within the draw period, you have that ability. Meaning, you won't need to go out and do another refi cash out and potentially end up paying points. Ultimately, the best scenario can't be predicted without knowing the future, but you can always do a cashout refi to payoff the HELOC with minor fees with most credit unions (usually county recording, etc but beware of pre payment penalty some have), but you may not be able to do a HELOC after a cashout refi. Just food for thought.