All Forum Posts by: Paul Chae

@Hoyoon Chae, why not just skip the headache of trying to get it to fit in a conventional mortgage box and get a commercial loan? Small banks and credit unions do these all the time on smaller balance loans. Less underwriting headache and seasoning requirements. The rates/terms may not be as good as conventional, but it is well worth the tradeoff, IMO. Get some referrals to commercial bankers and hit the phones.

Good luck!

@Paul Chae you can certainly file your own lien after you purchase the property.  That is acceptable.

Is that right? I will certainly have to keep updating myself on this! Much appreciated again.

@Hoyoon Chae, let me know if I can assist

Regards

Joe Scorese

I always include my rehab on my CD and use delayed financing to avoid the seasoning period. Just a thought for you moving forward with your next deal @Paul Chae. Also talk to @Drew Walls not sure if he can help you with the loan being so small but he is a very good New Jersey lender.

@Paul Chae yes, that is a good strategy if you are seeking Fannie/Freddie money. Do you feel you could qualify for that type of a loan?

@Paul Chae try posting in the New Jersey forum to see if there's any locals that can point you in the right direction.  At this loan amount it will be difficult.

@Paul Chae

I agree with @Andre Taylor rent it as soon as possible and start making income.  In the meantime contact local lenders and see who will do loans for less than 100K.  Local lenders will be your best choice with the best terms.

Yeah that is your best option to get it rented and wait out the seasonal period to refi for better rates... during that time you can make contact with local lenders to find ones that may have a shorter seasonal period potentially... but this seasonal period is only valid when you have a mortgage on it.. so for future.. get private lender or HML to purchase the property and renovate it...then with some lenders won't require the seasonal hold period.

You may find a HML that does long-term financing, @Paul Chae. Terms won't be great and the fact that it's under $100k may be a problem.

Most traditional lenders require 6-months seasoning before they will lend based on a new appraisal. If I were you, I'd get the house rented and start making contact with all the local banks and CUs in the area. Find out products they offer for a property like yours. That way once 6-months pass, you'll have a game plan.

What was your CF goal with this property? I mean, I get it, we want the capital back, but either you're an aggressive cash-out refinancee at not so great terms to turn-and-burn into other properties with little seasoning, or you are a conservative cash-flow-above-all-else with 6-12 months seasoning to get onto the next property in the same timeframe. There may be examples of both types of investors, but it would require an extremely favorable set of requirements of high cash flow, high difference between purchase/rehab and ARV, a ready-to-go money lender, etc.