All Forum Posts by: Judah Hoover

Hello @Chuck Shadle, Great to have you on BP. I am 11th generation Lancaster county myself. I live in Mountville right now but my heart will always be in southern Lancaster county. I know what you mean about the kids. We have 4, and half the people think that's a lot and the other half small... hahaha. I would love to connect with you because I know of some great investment clubs in the area.

Okay @Nadine Massarelli I think I now understand what the point of confusion is. And it could be the same issue @Michael Dunn is having. There is a difference between Commercial and Residential loans. BOTH however are called "mortgages" when they are attached to real estate. 

Commercial loans are done "in house" and the bank sets their guidelines... but all banks follow many of the same rules. They will lend to an LLC, on mixed use properties, above 4 units, and many other situations that would not allow someone to use conventional/residential financing. These loans are also kept by the bank and not sold on the secondary market. because the bank uses its own funds to make these loans they have rates that are tied to savings rates, and usually have terms fixed for 5 years or less, but you can sometimes find 7. Prepayment penalties are common but not 100% unavoidable.

Residential loans are much more like the loans people get on their houses they live in. 30 year fixed terms, interest rates a point lower (roughly). no prepayment penalties. Taxes can be escrowed. 99.997% of these loans are sold to Fannie May, Freddie Mack, USDA, FHA, or VA. That means the banks are using the guidelines set by a 3rd party... in some cases 2 or more 3rd parties if they don't sell direct, and then placing their own "overlays" on top of them. DONT BE FOOLED even if a bank still collects the payments on the loan, called "servicing the loan", they have sold it and down own it.

I have been in lending for 15 years. I never cease to be SHOCKED how little commercial loan officers know about residential loans and guidelines and vice versa.

Lastly I would say it seems from even just the little they have commented @Jon Holdman and @Justin Whitfield are also very knowledgeable and may want to add more now that I think we have uncovered the confusion.

@Yuriy Ivanchenko Welcome to BP and the Central PA area. There are many great networking opportunities in the area. I founded the club that @Ryan Wattenschaidt mentions and we would be honored to have you as a member. 

@Christian Bors Is talking about CARPOA (Capital Area Rental Properties Owners Association) they have a membership fee, but some of that money goes to legislative action. They are also a worthwhile organization to join.

I personally know the organizers of the York, Lancaster, Berks and Lebanon clubs. All are great clubs with their own flavor and you can lean a lot there too... best part is non are more than a 45 min drive from your new home town of Harrisburg. I would be happy to put you in touch with any or all of them.

Lastly @Steve Babiak Recommended you reach out to @David Krulac This is amazing man is absolutely worth your time to connect with.

If I can do anything for you or anyone else reading this post please just let me know.

Hi @Matthew Fragassi, I live in, work in, invest in, and network in Central PA. I would love to connect with you and talk more.

Judah Hoover

Hi @Lisa Henrich. Welcome. I am 11th generation Lancaster county proud. Lets absolutely talk about working on some real estate together. How was the meeting last night, sorry I missed it.

@Curt Smith can i tell you how nice it is to hear you say that. I get so sick and tired of people saying "nut ahhh... you just haven't found a creative enough lender". Usually a recent seminar graduate, unaware that I have spent the past 15 years as a full time lender and investor. I KNOW exactly what can and cant be done, and am always willing to push the limits. Having someone with REAL world experience validate the limits of lending is so refreshing, thank you sir!

@Jeff Sadosky "belts and suspenders..." I absolutely 100% agree my friend. And I recommend people buy in the name of an LLC for just that reason. But I also caution going to too much trouble to get properties in an LLC if they weren't bought that way, sometimes the costs and hassle aren't worth the reward.

@Bob B. is correct, if its a single member llc, if its not you could (likely will) be in trouble. 

MORE THAN ONE WAY TO SKIN A CAT.

Why not just buy some extra insurance to protect the asset.

People only sue when they are mad, OR when someone has done something stupid.

1)don't piss people off 2)don't do anything dumb 3) carry liability insurance

Follow those three rules and HOW you hold the property really shouldn't matter.

@Frank B. that cumulitive information might not be online... but you can find it for individual house in the tax records.

When you are looking at median home price, average days on market and such you can get that from 1)truly professional realtors... not just those clowning around. 2)local realtor association 3)SOME ONE at your local REIA club will know this. Being an active member of your local club is a GREAT source of information.

@Curt Smith offers some really good advice.

A lot of investors call MHs "cash boxes" they are cheap to buy and cheap to rehab... but often they can only be sold on the cheap too and offer little appreciation over time. (in most markets, your market may be different).

Because of the MANY new lending regulations it can be hard to imposable for a buyer to get a owner occupied loan to buy your homes from you when you eventual liquidate. meaning you are selling to cash buyers and investors only.