All Forum Posts by: John Adamkewitz

176k, 30yr am, @4.625 = $905

176k, 15yr am, @4.125 = $1312

IMHO, I would have taken the 30yr @4.625. And if things went well, paid on principle like it was a 15 or 20 yr am. If things went not so good. pay it like a 30yr am.

More flexibility with less than a half point penalty.

John

@Account Closed

"Plans:
I have big travel plans in 2015 so most of my funds that would be available as capital will be going towards that, but after I'd like to focus on raising the capital for my first purchase (aiming for 2016). "

Things that make 50 yr old people say, Hmmmm...

Hey Chris, Welcome to BP!

John

There seems to be some type of stigma attached to the term "Lowball Offer" so I try not to use the term around here.

If Your serious and can close the deal from Your end, always hand in a paper offer.

A very wise investor on this board, broke it down for Me like this: "Your basically buying a business right, You wouldn't buy a business that did not make money for You, would You?

Soo, when every body seems to be buying at high prices, in a hot market and You feel like Your gonna miss the boat. . . . .STOP! Do what, and bid, at the price that makes Cents for You and no body else.

I have to tell Myself this almost every morning. Does it work long term, I dont know. But all My properties make money, and most likely will continue to make money 10 years from now.

John

"What to do if the numbers don't make sense?"

Put an Offer in at numbers that make sense for YOU, then move on.

John

Hi John, Welcome to BP!

Portfolio loan = In house loan = Bank uses it's own money.

You could probably get better rates, assuming good credit, appraisal supports price etc. Maybe even 3+% rates on 25am, but the rate locks will be 3 or 5 years before ARM.

So You lose the safety of 30 yr rate locks.

If the existing mortgages are Conventional, then I would immediately join a Credit Union and check refi options, especially on the 6.5% loan. Closing costs will hurt for investment property, but rates should be around 4.5% locked for 30yrs right now.

John

@Lorie Mizell I'm thinking that the easiest mistake You could make, is to Under-capitilize this First property. If this is a Fannie Mae Home Path Renovation deal, I would go for reserves in the renovation part of the mortgage.

I think it's up to $35k for Renovation funds. Think long and hard how much this is going to cost. . . Then add 25%. Please don't get caught short, it's no fun at all.

Keep us updated, John

@Kristen Watts Hi Kristen, Welcome to BP!. Most banks will bring the depreciation back into the income line, when figuring Debt To Income ratio for Your next loan. This has been My experience anyway.

John

I'm a fan of ccap for tenant screening, but I'm not a fan of middle initials, dob and address's for the world to have access too. If You have a speeding ticket, odds are, that info is on there.

If they did remove dismissed (Eviction) cases, what are the odds of that being the only legal issue for that person, on ccap. And if it were dismissed, would that mean that they paid the landlord before the court date?

John

Someone in the Wisconsin legislature must need something on ccap removed.

I'm almost jokeing.

John

@Bill Gulley Thank You for weighing in on this. I'm in rural Wisconsin, and finding that if You have a reasonable plan with the reserves to back it up, that the reo owning banks are quite reasonable on price and finance terms. Reflecting what You've said.

This deal however, has someone in the backdrop holding to a ridiculous price that IMO, cannot be realized. Save for a less then savvy cash buyer.

The banks holding costs are over $4000 per month currently, plus the loss on what ever was owed originally. We are 100k apart, but they still counter and offer the requested finance terms.

I'm guessing that they have just not bled long enough.

What prompted the question, was after looking at the last counter offer I thought, How the hell could they get this deal thru their own underwriting dept?

I was going to call and ask them, but thought that some insight was in order first. Instead I'll think I'll stay silent for a while, knowing that I'm now in their rolodex.

Thanks, John