All Forum Posts by: Jason Keating

I've been wanting to work the Gloucester area, but my fear is not being able to find cash buyers that want properties here. I'm trying to get one under contract now in Gloucester Point. I'll defintley let you know if I get it.

are you still working the Gloucester area?

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Originally posted by @David M.:

@Jason Keating

The 2points and 1point origination fee is what is killing you. The prepay/escrows should be a "wash" since its a refi --- you'll get your current escrows back...

Just remember that many of the fees do NOT scale with the size of the loan. Thats why the brrr method originially plans to purchase with cash.

I suppose 4% on an investment loan is about rights. Its just over 1% more I believe...

Shop around. If you want a referral to my lender send me a direct message.

This was an all cash purchase and rehab was out of pocket. Can I negotiate not paying escrow? because I currently pay the monthly insurance and taxes out of pocket.

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Originally posted by @Bill B.:

You can see right on the form, the loan is costing you $6591, not $9300. If this is your first loan I would ask the banker to go over it with you. Anyone borrowing $100k should understand what they are doing/signing.

The only irregular charge I see is the first one. The 2% in points. That’s usually a fee to lower the interest rate, but 4% on a 30 year is already high. So maybe they are $2k too high, but only if someone else will offer you a better deal. You have 45 days from the time this first lender pulled your credit to apply at other lenders without hurting your credit.

Thanks bill,

I've done a few VA's and a few IRRL's but no conventional cash outs. I was looking at the totality of the closing. Neglecting the fact that this is part of the true cost seems the same as using a stated rate and discounting the APR. 9305 seemed high to me and I wanted to see if the numbers stated were the norm.

1 Vote

Originally posted by @Andrew Postell:

@Jason Keating what is your credit score? Is this a Fannie/Freddie type of loan?

Forgot to tag you.

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730 credit score. No it is not a Fannie or Freddie.

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This seems excessive to me. Cash out is at a small local credit union. They said this is what they account for and anticipate so it may change. What are your thoughts? What can I negotiate down? Rate is 4% on a 30 year. ARV is 145000 tenants in place on a 1 year lease. rents for $1000 a month property is in a rural area in Virginia. Purchased for $51500 and put $19000 into rehab.

2 Votes

I have a property that I have bought and renovated 5 months ago. The lender that I'm choosing to cash out with requires a 6-month seasoning period. I know loans can take 30 or more days to close. Can I apply now and move the refi towards closing or, do I need to wait for the 6 months to pass to apply for the refi?

Thanks,

Jason Keating

1 Vote

Sounds great Helen, I will look out for you. See you on Thursday.

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There is a real lack of any real estate meet up and networking in Williamsburg VA. I have started this group to link up like-minded investors to meet monthly. Starting in the accumulation phase we will get the first meeting in a month or so. Please reach out if you would like to participate or wanted to help organize. I really want to get out there and meet other investors.

https://www.facebook.com/williamsburgInvestors/

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Originally posted by @Richelle Ouellette:

Originally posted by @Jason Keating:

How many sf was the shed that converted? Did you hire contractors or DIY? What was the ballpark cost? What is your average vacancy percentage, and what is your nightly rate? I know it’s a lot of questions, I’m about to undertake this project in the spring.

Hey Jason! The shed is 192 square feet -- so at roughly 2k/month, I'm getting 10/sf/month! It cost roughly $18,500 to convert including materials and labor, much of which I did myself/with the help of a handyman.

Vacancy varies by season in Austin, but I range from 80-99%, based on nightly pricing of $55-99.

Good luck with your project... where are you building?

I’m going to convert my backyard shed too. It is located in West Point Virginia, a sleepy town between two rivers. Definitely a motivational post for me. Going to try and make it as passive as possible.

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All Forum Posts by: Jason Keating

Jason Keating has started 3 posts and replied 11 times.

Post: Virginia, Middle Peninsula.

Post: Closing costs $9305 on a 108000 cash out!!

Post: Closing costs $9305 on a 108000 cash out!!

Post: Closing costs $9305 on a 108000 cash out!!

Post: Closing costs $9305 on a 108000 cash out!!

Post: Closing costs $9305 on a 108000 cash out!!

Post: Cash out refi seasoning question

Post: Williamsburg Virginia real estate meet up

Post: Williamsburg Virginia real estate meet up

Post: Backyard shed cash flows $2k+/month