All Forum Posts by: Joe Kim

Main points of the Financial Choice Act are that they are going to de-reg banks to a certain extent, but with the increased freedom they will not have any bailouts in the future, so banks will have to police their own risks.  Its also going to reduce governing power of the CFPB and put it under an executive branch instead of being a stand alone.  I haven't read all 500+ pages of it, but I'm sure its not going to affect lease to hold.  CFPB doens't really govern real estate investment.  Its the Consumer Financial Protection Bureau.  You're an investor, not a consumer.  You fall more under SEC guidelines.  

If you're looking at doing a conventional loan, you need more than 25% equity. Max limits are at 75% LTV on a 2 unit. If you're looking to do an FHA cashout 95% then its 12 months seasoning. (reality its 12 payments and same on conventional loans you have to make 6 payments for seasoning). Also, non-occupied co borrowers/signers are not allowed on the 95% loan, but are allowed on the 85% cash out on the FHA. If you have a great DSCR, its something to consider. Also pending what your annual income is with or without MIP is tax deductible like interest. There are many variables that come into play.

My company is not bonded in PA, however, there are companies out there that have all sorts of great non-QM mortgage products, like 12-24 month bank statements, asset valuation.  No income check, no documentation loans (no-doc).  Fair rates much lower than 10% with 1-5% of origination fee.  You just got to find them.  Appraisal values are important, but condition of property is not so much as important as they will only lend on the lower of appraisal value or sales price and understand that you'll be fixing it up.  Just look for non-QM lenders online.  There should be some out there.

Just got to his posting late... pragmatically speaking?  You're defining one experience with the same private money lender for 14 years and then extrapolating that scope across the board to the 10s of thousands possibly 100s of thousands of private money lenders out there.  The only thing your above statement qualifies is this... your ONE private money lender you've found is vastly different from the 20-100? hard money lenders you've researched in your 14 years in the industry?  BP has 700 of them advertising on one site here and I can name 10 off the top of my head in the southern california area that aren't listed on BP.  They don't fall under Dodd-Frank jurisdiction cause its investment property, and SEC has definition gaps as well.  Dodd-Frank has some rules on seller financing as far as definitions of an originator for CFPB to have extra jurisdiction that's in sec 1026.1(a).  California licensing follows all Fed licensing and has additional overlays as do at least the 12 other states I've been licensed in, UST covers a lot of the other states as well.  Haven't checked recently how many states that covers now, but in essence I have never seen a state law conflict with fed, they just have additional overlays.  But getting on point pragmatically speaking?  I've seen private money loans that get destroyed by hard money financing.  Seller financed properties that I can't believe these people actually took.  Hard money gets a bad name, but there are a multitude of lenders out there that have non-QM products that lie in between the gap of conventional mortgages and what one would normal consider Hard Money.  These loans do fall under CFPB - Dodd Frank to a certain extent because they usually do a credit pull and take a full 1003.  However, their qualification guide lines are MUCH less stringent and are manually underwritten so they can be tailored to one's specific needs.  Its a brand new market that has very little risk on the secondary market with better coupon rates.   Its a wonderful niche for real estate investors because a lot of these investment products can be no doc with only 25% down.  Or asset based/state income based, with way less origination costs.  Regulation always creates needs and new markets.  It took a little while for the mortgage industry to catch up, but these products do incredible industry wide.  "Technically" they could be considered HMLs,  They're institutionally created products by Direct Lends, and VCs, but really a lot of these beat the hell out of private money loans.  It just depends who's giving you the private money.  A lot of the seller financed properties which fall into the category of private money are straight criminal.  I'm very happy you found a great private lender who you've built an incredible relationship with, but its hardly fair to apply that to the entire scope of the lending world.

Hi Everyone,

I am looking for a few more solid investors to work with in order to better both our positions.  Beyond our product lines, which are industry shaping, I no longer am in a position where I want to work with thousands of different people annually.  Instead, I want a smaller group of good investors where we can build a relationship together and make these loans fly like clockwork.  To my clients I am available 24 hours a day 7 days a week.  I will always take care of you to always figure out a way to fund your project.  My company is not in the habit of denying loans and we specialize in non-cookie cutter loans.  That being said, let's get into what I have to offer.

Unbelievable Jumbo Loans - 10% down.  (Primary and secondary only) - industry rate competitive.

Nan Q* - These are our non QM loans that have qualifications that fall between conventional and hard money.  These are rate competitive, but more importantly origination fee light compared to hard money.  We have no doc loans, stated income, asset depletion, and many others to meet your needs.  All of these loans are manually underwritten, so we take into account your specific needs.  Let's face it, 1 out of 100 loans fall into specific guidelines, so we tailor these loans a great deal.

HML - we have these as a last option for you.

FHA, Conventional, VA. - Have all of these for refinancing and purchase.

Please colleague request me, shoot me a message with any questions.  Let's build a lasting relationship and lets mutually build a better life together!

Sorry Wesley, I mean to say DONT do 300 loans in the next 6 months. Haha. I can personally work with you and I have lower origination than most PML and HMLs. I also have 20% down and no doc loans. (Which are amazing. No hassle funds in 7 days or less and there really no docs. I just check your credit scores and do 2 appraisals. If all values come in? That's it we fund.) but I have a lot of unique products that's I'd be happy to go over with you to see if anything fits what you're looking to do.

You're in California. If you're a first time home buyer or haven't owned in 3 years. You may qualify for a calHFA program which potential could be zero money down and zero capital. PM me if you'd like to know more.

My daytime job, I work in the industry as a branch manager in a mortgage company, but in my soul? I am an artisan pizza maker. I've taken masters classes in San Francisco from the great Tony Gemingiani himself. I make arguably the best NY pizza this side of the Mississippi. I realized a long time ago when I was young and working at the biggest gaming company in the world that sometimes our work shouldn't follow our passions. Because when you leave work? What you going to do then? You gotta then find new passions. So yeah, I will leave my passion for pizza unadulterated by worldly standards and keep it to a strictly avid amateur until I retire. at that point, I might start a local pizza place just to have something to do, but not care whether I make money or not and do it to break even and have people smile and groan about my pizza.

10% down Jumbo loans up to 3 million with no PMI. DTI ~45%

15% down Jumbo loans up to 3 million dollars that match or beat the best jumbo pricing out there, but at 15% down not 25-35% down Still no PMI.

These loans are stellar and I haven't seen another company that offers anything close.  I know there might be one out there, I just haven't seen them when I'm browsing.  

I also offer a great line of loans for investment that are NOT HMLs.  Please e-mail me or PM me if you'd like more details about my products, or if you'd like to run your scenarios by me to see if I have options to help.  

Hi Wesley,

I'm more than happy to go over our financing options with you.  I have all conventional loans, Non-QM, and HMLs.  As long as we do 300 deals over the next 6 months, my company should easily be able to handle.  If you like I can PM you my information.