All Forum Posts by: James Blalock

Thanks. 

Levi - sounds like you have good network. Congrats on all you success. Is there a local REI Group in Fredericksburg? I'm just getting started and would like to meet like minded people and establish a network to help mirror your success in my own REI efforts.

Does anyone know of a rule of thumb about when to spend money up front to "buy down a loan"? My loan officer contacted me yesterday and asked me if I would be willing to pay a quarter of a point to move my interest rate from 4.625 to 4.5. For my loan, the quarter of a point is only $250. Seemed okay to me. I was told I could pay more points to bring the rate down further but it looked like it would take a while to recoup the up front costs. As far as REI is concerned, when is buying down a loan a smart move?

Sounds like sound advice. Thanks.

I'm buying a duplex that isn't discounted but doesn't need repairs either (it's in another state so I wouldn't be around to do the rehab). Taxes are high but the good schools attract families willing to pay a higher rent so their kids attend better schools. With both units rented I clear about $500/ month after expenses. The numbers seem to work even if I'm not following the strategy of buying discounted property. My only problem is the seller made the tenants leave in order to sell the duplex. Given the time of year it may be difficult to find a family with kids to rent to. It will be a good property in the long run though.

What are the warning signs that we may be reaching a peak in Real estate and what are the impacts? How do you mitigate the risks? 

Thanks.

Does anyone have a good explanation about the difference between Loan Costs and Points? I started the loan process with Wells Fargo for a loan at 4.625 % for an investment property and recently I had someone state that the rate seemed a little high.  As a result I made a call to Quicken Loans to see if I could get a better rate. They said that they could do a loan for around 4%. The difference between the two quotes was about $33.00 per month in the mortgage payments. What confused me was that Quicken Loans included points and Wells Fargo didn't.  When I asked about points with the Wells Fargo loan officer, I was told that there were no points charged.  However, the paperwork that I signed did have "Loan Costs" which to me, equals points.  Is there a difference? 

I've looked around the Stafford, Fredericksburg area. Haven't found any reasonable rent to hold investments. Recommend you check out of state. I'm investing in a duplex in Cleveland. I'm not using them currently, but Holten Wise Realty seems to cater to investors. Recommend using the bigger pockets tools to do your own analysis and check to make sure all you capital expense items (roofs, furnaces, water tanks,etc. are in good working condition and expected to last for awhile while you build up your capex reserves.

Everything I've read says go with an LLC. On the risk that the bank will call in the loan upon transfer, have you talked to your bank about that? Depending on the bank, they may say no problem (mine did). I hear that calling in the loan very rare.