All Forum Posts by: Jake Roland

@Anthony Katsonis that was an amazing deal for my clients! The sellers were retired and just wanted to get out. It was not originally listed for that price...but We were able to get to that price during the due diligence mostly because of the several delays we had in financing because it was so distressed and the vacancy was so high. We had to go through 3 banks and the last one had very high stipulations to gIve the loan. The parking lot was in very bad condition which was a major issue also for insurance. My clients have done a great job so far of renovating and repairing units and the parking lot and raising occupancy. I believe the rents currently range from $350-550 depending on bedroom count. They are working on raising rents as well, there is also some other income producing items like on site laundry, etc. It is definitely already pulling in a great return and should only get better as they continue to improve the property! 

@Anthony Katsonis Awesome! Congrats on the deal. 

@Charles Mitchell From what I know, you need two years of tax returns to qualify for most loans. That said maybe you can find a local bank or a credit union or something else that will be more flexible, but even then I feel like it will be very hard to find someone to lend to you without 2 years of established job history. I am also self employed and had to use a private lender for my first deal and am planning to refinance as soon as I file my 2nd year tax return and can qualify. Good luck!

@Mauricio Salom I'm not sure if I completely understand the question... But I wouldn't consider it a "favor" for the seller to fix items revealed in inspections. Typically after the inspection period, the buyer has a chance to request the seller to repair items revealed during the inspection if they want. Both sides have to agree to the seller performing the repairs, renegotiate the price or whatever is decided. If both sides can't agree on anything post-inspection then the contract may be voided. This is all part of the contract both sides signed so it should be expected and why I wouldn't say the seller is doing anyone a favor by deciding to fix issues associated with the house. 

Welcome @Cameron Clouse! Lot's of great info in the Forums and books as well as the podcast. Feel free to reach out if you have questions. 

@Sonja Chaney Is it a mobile home? Or a stick built home on a crawlspace?
Did you finance it when you bought it?
Are you saying that you put it on the market and got it under contract and the buyer's lender is now wanting to consider it a mobile home?

@John Pandolfo If you know more of the exact figures, potential rent, estimated insurance, mortgage payment, etc. You can plug those numbers into the BP calculators on the site and get a more accurate estimate than just using rules of thumb like the 50% rule. 

@Robert Ashline Yeah I thought the same thing. That is the first time I've actually seen it used, but it really worked great for them. And from my understanding if you do this you don't have the extra fees, closing costs, and qualifications that FHA and VA require. If you are putting improvements into the house then you can gain equity pretty quick even with the 100% financing.

I think you understand correctly... 

Very simply, 
You take out a mortgage of -$100,000. Payment is $1,000/mo. 

You put in repairs and upgrades. The home is worth $200,000.

You refinance the house and take out a new mortgage of -$200,000. New payment is $2,000.mo. 

They pay off the first mortgage of -$100,000 and so you have $100,000 left over. 

You now have $100,000 and your payment is -$2,000/mo.

@Robert Ashline I just closed on a house with buyer clients that used a 100% financing conventional loan. It worked great for my buyers. The way their bank works is the 100% financing is only in specific areas that qualify for the loan program, and/or works with buyers under certain income limits. My buyers that used it also were in the income limits and so they got an extra $500 off of their closing costs, and also with this program all of the closing costs were less than a traditional mortgage which was great. 
Definitely explore the options, and if your loan officer is good they will explain the options well and you will be able to make an educated decision that works best for you!