All Forum Posts by: Jason Hirko

@Seth Teel Thanks for the hospitality! Glad you and Miller were able to catch up!

@Bruce Lynn isn't there a shorter redemption period if the property wasn't homesteaded? I want to say 6 months but I'm not 100% sure.

@Karolina Powell That stinks. It seems like these are non-owner occupied commercial purpose business loans, so TRID disclosures don't apply, which is why they are able to keep changing the numbers up until you sign. BUT regardless of that, the numbers should still match your original term sheet! If not, there should have been some update made during the underwriting process (like if an appraisal came in lower than expected), and an updated term sheet signed. But none of your fees should be a surprise or up in the air!

With that said, and not to take up for some lender, but if the numbers are what you expected, and they are just updating the HUD with title/attorneys up until the last minute, that's probably not the worst thing in the world. If there were 3 day disclosure rules, you would just have to close 3 days later.

But if the fees are a surprise, consider getting an extension and finding a new lender. A lot of DSCR lenders can even use the appraisal ordered by another lender!

@Todd Allen I dropped my coverage after I had 3 houses flood in Hurricane Harvey and they denied my claims because Windstorm only covers water coming down, not up. They didn't care that the rising water was from a windstorm. Shame on me for not understanding my coverage, but I look at it like you do. I'll save the premium and know I have the money in case something happens, instead of paying the premium and hoping insurance comes through. 

@Nathan Frost Is the rehab completed? If we can get an as-is appraisal over $100k after the rehab, we can get it done!

@Paul Meyer Unfortunately I think your expectations on interest are unreasonable. Even if you were looking for a conventional loan on an owner occupied property, the lowest you could expect would be in the 7s. 

There's also a reason that lenders shy away from rural and/or mobile homes, and it isn't because it is low risk. 

And I have never heard of a private individual giving a 30 year term. 

 Yes let's get together @Paul Gomez!

It sounds like there are two issues here. 1) the condition the tenants left the property in and 2) the condition it is in now. Sounds like the property manager is saying something happened between those two things. They should easily be able to provide documentation to back it up.

And yes, $10,000 in damages after moving out is always excessive.

@Ashley Ernst sounds like a great deal. We would look at that as a delayed purchase transaction, not a cash-out refinance, so there would be no seasoning period on our DSCR loan. You would still have your same minimum down payment requirements, so you'd be leaving some money in the deal. Depending on how much of a discount you are buying the property at, it might make more sense to just wait the 90 days that most lenders want you to own it before refinancing it, in order to get your basis in the property as low as possible.

Get a cash-out refinance on your property and pull out $150k that you can invest somewhere else with effectively zero cost of capital, as your NOI will cover your mortgage. Then if you make a 19% return on the $150k like you did on the last investment, you'll be pocketing $28,500 and the appreciation on both properties.