All Forum Posts by: Jessie Niu

Just from those numbers you gave it looks good to me. Personally, if I could get a duplex for $45k that rented for $600 ea that would be awesome! Most duplexes in my area are 130k and rent maybe $700-800. And bonus of being ARV of $60k+.

Too much out of pocket is all relative to what you goals are. If you can't get financing, then you either need hard money or cash for the most part.

Thank you Andrew!

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I am a newbie investor, just made an offer on a REO duplex. This is my first deal! It's been on the market for several months. I made a cash offer of $28k, rehab cost is estimated to be $15k, ARV should be $60-$65k, each side should be rented out for $550-600 after rehab.

After analyzing the deal, the number doesn't look bad, but my concern is that is it too much cash out of my pocket (I can't get financing yet due to my name still tied up to other mortgages that barely have any equity)? Did I offer too much? but can I get a HELOC after the rehab then use that money to buy my next property? I if yes, maybe it's not that bad? should be able to get about $42k right?

I am new and this is my first deal, the contract is contingent on inspection, I have next week to decide, so desperately need advice here! Thank you so much!

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Originally posted by @Upen Patel:

@Jessie Niu You need to find a new mortgage banker, because this one does not know how to read, let alone understand the rules and regulations.

You most certainly can use gift money to cover your down payment/closing cost. Though there are better ways to do it.

Also, if you are low on cash then you might run into an another issue down the road of the loan process.

PM me if you would like to discuss.

Upen Patel, Mortgage Banker

Federal NMLS# 1374243

Thanks for the info Upen!!

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Originally posted by @Nicholas Crum:

I can't speak for every bank but the one I use said if it sits for 60 days in the account then I would be able to use it as a down payment. I would try another bank as some only require a letter notarized and signed from your parents stating they do not intend to receive any of this money back. Every bank is different.

Hope this helps.

Thanks! I will talk to my realtor and also look for other banks too!

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Originally posted by @Russell Brazil:

@Jessie Niu I think you can use gift money if the funds are seasoned properly, though Im not 100% positive. @Upen Patel should be able to answer your question on this. He is a national mortgage broker.

Thank you Russell!!

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My mortgage broker just told me that I can't use gift money from my parents as down payment for investment property due to the rules from FHLMC and FNMA. What? I never knew this!

The mortgage company can't give me the loan, so I either have to use my own funds as down payment or buy the investment property with a cash offer without loans from mortgage company.

Unfortunately I don't have much cash myself, but my parents are willing to help and give me cash. There must be an alternative way to make is happen!

Please help!!!!!

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All Forum Posts by: Jessie Niu

Jessie Niu has started 14 posts and replied 208 times.

Post: Newbie desperately needs advice! Is it too much cash?

Post: Newbie needs advice! Too much cash out of pocket?

Post: Newbie needs advice! Too much cash out of pocket?

Post: Newbie desperately needs advice! Is it too much cash?

Post: Advice PLEASE! Can't use gift money for investment property??

Post: Advice PLEASE! Can't use gift money for investment property??

Post: Advice PLEASE! Can't use gift money for investment property??

Post: Advice PLEASE! Can't use gift money for investment property??