All Forum Posts by: Jeff C.

Dude. I absolutely would not have put these back in until the moment of move in. There's no reason for them to be there. Even on my flip properties I advertise them with "new appliances included, to be installed at close of escrow". To have brand new appliances sitting around in vacant properties, and then advertising that fact online by posting pictures of said properties along with addresses, is just asking for trouble. That said, on the rare occasion that we do have them in we try to make sure there are window coverings on any window from which the appliances can be seen, and also have some SimpliSafe alarm systems that we move from property to property.

I kind of wanted them in there to show the property to tenants. I am going to make sure all of the blinds are drawn when I show the property tomorrow.

Not worth it. I've bought enough sets of appliances twice to know. Sometimes I do have my virtual stager pop them into place on the photos. On rare occasion do I violate this. One that sticks out was a unique higher end property where a big Viking range was a showpiece of the kitchen. I not only installed an alarm on that house, I bought a GPS tracking device and affixed it under the range. If that stove started moving I was going to know about it immediately.

2 Votes

Originally posted by @Remington Lyman:

Less than 24 hours and $2,400 later I have the replacements in!

4 Votes

Originally posted by @Tommy Foltz:

Can somebody who is not self employed, has a lot of equity, excellent credit, no debt and 30 thousand in savings but can only prove very little income because the majority of their income comes from tips, do a cash out refinance? Are there banks, credit unions or mortgage companies that are able to refinance loans without proof of income in the Denver area? Any help will be much appreciated, thank you.

Proving your tip income should be no problem since you claim it all on your tax returns.. right?? ; )

0 Votes

Originally posted by @Eka Linwood:

@Jeff C. I have heard that the appraised value of the property sticks with the property, so if the appraisal comes low - the Seller has an incentive to come down and meet the FHA appraisal price or essentially decline to sell to FHA buyers. Have you seen a case where a Lender is willing to work with an appraisal ordered by another Lender?

It's not a case of willingness. Here's the verbiage from FHA underwriting guidelines:

"In cases where a Borrower has switched Mortgagees, the first Mortgagee must, at the Borrower’s request, transfer the appraisal to the second Mortgagee within five business days.”

0 Votes

Originally posted by @Eka Linwood:

So, this is probably my fault for not doing a better due diligence ahead of time.

We got under contract early Jan for a closing date of Feb 20, and this is my first time buying a house. I got a pre-approval from Lender A, and right after the Seller accepted the offer, I went shopping for Financing. I went to Lender B, C and D. Only Lender B were able to get back to us with a loan estimate. Lender C and D were not able to, due to the various complexities on the deal.

Just last week, I got curious and read up on FHA rates some more. I found a new Lender (Lender X) that is publicizing 0.25% better rate. Now, my credit score is excellent and DTI is very low, so I should have no problem qualifying for the best FHA rate. I do prefer to sign up for the least amount of down-payment (FHA 3.5%) though, so there is that.

Since I thought this issue is closed, I ended up getting this Lender to proceed with the whole process. The only thing pending right now is the appraisal (ETA: Jan 31) and the Home Insurance (After Appraisal).

If Lender X rates (2.75%) come in significantly below Lender A's rates (3.0%), I see two scenarios:

I move to Lender X - potentially jeopardizing the deal and have the Appraisal moved to Lender X or maybe paying for another appraisal altogether.
I stick with Lender A and ask them to match this new Loan Estimate from Lender X.

My questions are:

Would it be ethical to do this to the Lenders?
Is it possible to "move" appraisals to the new Lender?
What are the chances of this action jeopardizing the deal?

There's a lot more to look at than just the rate when comparing loan costs. Are you sure the other fees are comparable? You may not be comparing apples to apples. You can get just about any rate out of any lender, given enough points. You've also committed to a closing date with the seller. If I was the seller on the deal and you weren't making the closing date because you switched lenders in the middle of the transaction to try to get a better deal for yourself I'd demand compensation to sign an extension.

0 Votes

Originally posted by @Ella Vrolyk:

I'm a real estate appraiser and can answer your second question. It is unusual for a lender to accept an appraisal that was done for another lender, since they are not the intended client per the report. It is not unheard of, but not likely. You would most likely have to pay for a second appraisal that would be addressed to the new lender.

This is not accurate. An FHA appraisal sticks with the property for 120 days.. not just in the case of a new lender, but even in the case of an entirely new buyer and lender. A new lender would work with the already existing FHA case number.

1 Vote

Originally posted by @Cody L.:

Originally posted by @Matt R.:

I typically see new investors looking for best cash flow areas. I thought I would share that with the new Calif ADU laws some might consider how that could increase cash flow with just a little homework and perhaps a few thousand in new investment. Here is one example of how 30K turns into $1800.00 a month or 6% by permitting an existing detached garage into a legal unit. My friend did this recently in the LA area and could add another on wheels of all things. Effectively turning a SFR into a Triplex sort of speak. Some might be able to take advantage of this so this post is to remind you, location really matters.

How do you think you might be able to take advantage of this new ADU law?

You're assigning $0 of cost to the land. If you were to buy that land, and build that structure, you'd be sub 1%. or buy the home + ADU together and rent them both.

There's also nothing in the calculation for the fact that the garage has been lost. I personally could never live in a house without a garage. It's a nonstarter for me. Nonetheless, for someone in a different situation it looks like it could pencil pretty well.

2 Votes

Originally posted by @Minna Reid:

@Salvatore Trapani They are not talking about a foreclosure auction. They are talking about auction.com. Two totally different things. A lender can’t sell a property they don’t own.

Inaccurate. Auction.com conducts foreclosure sales all over the place. In fact they're THE premier conductors of foreclosure sales. Florida is the odd duck with the county clerks conducting sales.. so I can see why this would be your experience, however one should not assume that things work everywhere the way they work in their immediate vicinity.

1 Vote

There was absolutely no juice in this from the start, even if the OP hit his projections. Selling at 615k he'd be lucky to walk with 585k, and that's keeping commissions really tight paying a low rate for the listing. 445k acquisition and 105k estimated rehab equate to a 35k profit if everything went exactly according to plan (and it never does). Going into a deal with a 6.3% projected profit margin is just asking to take a beating. How was this ever supposed to work?

6 Votes

Originally posted by @Luke Miller:

@Kalen Jordan if a lot of syndicators are being honest, the real reason they sell is because our biggest capital event is on the back side. AKA syndicators make money on sale, not on holding.

I think that's a flawed reason to sell and NOT in the investors best interest. Refinancing and/or supplemental loans can get you your capital back, without the hassle of selling.

My preference is to model a 5-7 year hold with a sale in that period, but if I can fulfill the business plan and keep the property, I am going to. That is essentially an infinite return for the investors at that point. Who wouldn't want that?

Here's the honest answer. I can't figure out why this doesn't have a lot more likes.

2 Votes

All Forum Posts by: Jeff C.

Jeff C. has started 8 posts and replied 263 times.

Post: Contract left back doors open and I am out $2,000 in appliances

Post: Contract left back doors open and I am out $2,000 in appliances

Post: Cash out refinance with little proof of income

Post: Changing Lender after Appraisal

Post: Changing Lender after Appraisal

Post: Changing Lender after Appraisal

Post: Forget seeking 1% to 2% rentals, Try 6% instead

Post: House under contract showed up on auction site

Post: Fix-n-Flip Gone Wrong

Post: Why do most syndications sell instead of long term hold?