All Forum Posts by: Jeff S.

Okay, thanks for the responses.

I will try calling the lender (sevicer) and see if due date can be changed, but sounds like it is not a problem.

So I've seen a few "non-success" posts in this forum so I thought this might be a good place to share.

For about a month now I've been working on one deal - my very first deal.   A duplex to owner occupy.  It's not a homerun by BP standards, but the price was below market, the numbers worked quite well, there was plenty of upside in rents and future rents (up and coming neighborhood) and very importantly in my situation:

1) It is a very pleasant property that I would enjoy living in, in an appealing neighborhood.

2) It has stable good tenants so no newbie fear of having to fill an empty unit right away.

3) Cheap enough so I wouldn't need to FHA and I would still have reserves enough for comfort/sanity and even upgrades.

The situation was an owner with a balloon due on 12/31 and not enough credit to refi.  We have a great rapport and I didn't want to pressure her.  She kept saying if she couldn't refi she would sell to me, asking price, split closing costs.  Even after a little scare with a cash buyer she reassured me I was first in line.

She got turned down 3 times for a refi, and said she would know by Tuesday (*last* Tuesday) about the fourth and final attempt.  Still, I didn't want to pressure, so I waited, pins and needles, for a week not hearing anything.  Today I texted her and - surprise - it looks like somebody is going to lend her the money after all. Sad for me : I really was growing attached to the place.

Anyway, there's always the chance something won't work out, but it's time to start letting go.

A lot of this process has been good for me.  I got my financing options all straightened out, set aside some extra cash, built some good relations with lenders, and really took a lot of steps that involved overcoming fear/hesitation/laziness/frustration. So that much I can carry on to the next deal.

In the meantime I can keep learning, and try not to be discouraged by all the ugly overpriced boxes in shady parts of town.

 Wow, that is so obvious it never would have ocurred to me...  

Is that something lenders actally do? 

Hi folks,

I have a pretty decent credit score and want to keep it that way! But I have a question about that.

My mortgage payment is due on the first of the month and I set up my checking to pay it automatically. My employer direct-deposits my paycheck on the last day of the month. And I have an untapped LOC with the bank for overdraft protection.

But still, I'd feel a little more comfortable with a few days cushion between paycheck and mortgage payment.  Every so often my employer "forgets" to pay somebody. (Happened to me once and the response was like "Oh, that happens sometimes....")  Also, my bank "tries" to make the mortgage payment arrive on the day I specify, but they don't promise.

Anyway, the mortgage co. has a grace period of 17 days before any penalty is applied.  My question:  if my mortgage payment arrives within this grace period on a regular basis (say on the 3rd or 4th of the month), will this have a negative affect on my credit score?

Personally I don't like to rely on overdraft protection:  it feels like a form of check bouncing.  And I don't like the idea of keeping extra cash sitting in my checking account to cover a (hypothetical) shortfall.

So what say the experts : is a "late" payment made in the grace period a bad thing? 

Congrats, Edward.

I think the FHA (or VA) owner occupied 2/3/4-plex has got to be one of the best deals Americans have to get started in (profitable) REI. I own my own (mortgaged) house, but am working on a deal to buy/occupy a duplex for cash flow.

I'm sure others here would join me in encoraging you to share your good/bad experiences as a new landlord.  Sometimes advice from the "experts" is harder to relate to.net 

Keepin' a thread alive ...

The car I drive was sold (new) to somebody else for $60,000 back in 1994, when that was a lot of money.  In 1994, the house I lived in was worth MUCH LESS than that, about $45,000. 

I picked up the car 8ish years ago for $3600, and put about $800 of DIY rehab into it.  The only repair I paid for since then was a fuel pump, about $500.

It's a BMW 540i, V8, something around 450 HP, the engine control module  prevents speeds over 150 MPH, the interior is black leather and Cocobolo (exotic hardwood), and if you've never driven a BMW, yes there *is* a difference.

I get a reak kick out of the fact that I paid *less* than a sensible car lot "deal" on a used Hyundai.

Disclaimers: I do all my own maintenance when time/weather/skills allow. I drive very few miles per year.  The car looks like cr@p (bad paint, trim falling off, leather seat torn) but I don't care.  All I see is an awesome car that costs me next to nothing to drive year in, year out.

"Faucet has leaked" : like a drip into the tub, or a leak (anywhere else) ? If it is anything else besides a drip into the tub you MUST fix it now.  If it is a dripping faucet, it should be easy to fix without ripping out the wall.  If you can't do it get a handyman (not a $plumber$) to do it for you.

Oh, and another thing. IMO, used car salesmen are some of the most sexist "professionals" out there. You might phrase your letter in terms of "my business partner and I feel ...".  Make him feel like there might be a man involved.

Apologies to all the used car professionals here on BP.  At least to the non-sexist ones...

For me the key point is the words "used car salesman".  For me that alone would kill the deal! I don't want to get into that level of mind games and manipulation.  But that's just me.

I recently read (on BP) about the usefullness of a written letter accompanying your offer.  It's not to late to send a polite letter explaining all the things you like about the property, how you understand why the seller would (quite rightly!) feel the property was clearly worth much, much more, but your personal situation, unfortunately, limits you from going any higher.  You are sincerely interested in the property, and hope that its okay if you keep in touch, (blah x 3).

Oh, and if this works, do you mind tossing me 1% of your profits? 

If Ken's suggestion works, great. Other approach is to refi the condo into a non-FHA loan. But there is a catch. You need to refi the condo as an investment property. If you don't do this, you will have to sign a statement that you will occupy the condo for a year. So your choice is to pay a slightly higher (investment property) rate and make sure you have enough LTV (usually 25%), or plan to live in the condo for another year after refi closes.

Before the last crash, people played fast and loose with occpancy requirements. From what I've read, lenders are taking it much more seriously now.  And lying about occupancy constitutes mortgage fraud - with fines and prison time for those who don't play by the rules.

(Just a newb, but I've been dealing with the same isdue on a HELOC)