All Forum Posts by: Justin Frank

We are looking to refinance our primary home. 15-30 year rates seemed to have stabilized in the low 3s which is much better than our current rate at 4.875%. The question I have is about the type of mortgage. We are debating a 30yr conventional or the All-In-One loan from CMG financial. Is anyone familiar with this loan and/or has anyone used this loan and if so what do you think? I have attached a link for so more info on the all in one. If you are a saver or have idle cash it seems like a winner.

https://www.cmgfi.com/all-in-one

@Freddy Rondon

Depending on what part of Washington state you are looking this can be a tough task. Homes less than $400k are still selling very quickly here. Most of western Washington is still priced very high but it is still very possible to find great deals. We are starting a project in Tacoma that we picked up for $170k. Crazy to think that is a good deal huh. I would find a good agent, network with flippers and REI groups, send out off market letters, and drive for dollars. That will be a good start.

@Kris Mead

As others have mentioned you may need to look around. Different banks are doing different things in this market. I am in the Pacific Northwest and not much has changed here as far as lending goes. Homes are still selling and banks are still lending. The only delays are because there are so many people refinancing that some of the banks are backed up/delayed. We are trying to refinance one of our storage units and the commercial lender is backed up with all their existing clients applying for the CARES loan or whatever you want to call it. 

Hi @Todd Powell

Where are you looking to flip homes? I have a couple in the pipeline. They are up in western wa. Could use a partner on them. 

I think the residential housing market is going to get crushed here in the near future. Especially in expensive markets where I live on the west coast. 20% down, 700+ credit score, and 6 months of PITI will be a game changer. Especially for people buying at higher price points. It is really easy to get into a $500k home here in Washington. $100k down, plus $18k in the bank as reserves will be a tough pill to swallow for most. I think the buying will stall and force owners to hold or severely lower their prices to sell. The bank I generally work with stopped jumbo loans, and FHA is gone. I hope I am wrong but I think values will fall significantly which will ultimately put banks in a bigger bind because every one of their clients that had a decent amount of equity as a safety net for the bank will be lost.

Thanks @Greg Dickerson. I still can’t make up my mind. Today is about the last day for me to decide. My plan was to pay cash for this deal but a big part of me does not want to be without the capital for 4-8mo. Decisions, decisions. 

Hey @Jordan Murrell

It is always a good time to start investing. Your Strategies, and criteria may (should) change with the times but I don’t think there is ever a reason to sit around and wait. I do believe that the economy is going to suffer much more than people are hoping for but I also believe that there are buyers and sellers, along with good and bad deals regardless of the times. There will be a lot of people who struggle to make it through this recession and there will be a lot of people who come out the other side wealthy. Real estate investing is a hard game to play but you are on the right track by asking questions and becoming educated. Don’t wait, but be smart and have patience when looking for the right deal. 

I’m sure this question has already been posted so I’m sorry if this is a repeat. How is everyone feeling about flipping homes during coronavirus mess? I am looking at two opportunities right now and Both have multiple exit strategies. They would be great fix and flips, great to hold for myself as rentals, or great to sell off as turnkey rentals. Because there is more than one exit strategy I feel comfortable moving forward with the deal regardless of the market however my first option would be to flip these homes to a residential buyer and move the capital into larger deals. Hoping to get people’s opinions on fix and flips right now. These homes are located in a smaller market of around 15k people. I know the issue we have today is much different than 2008 but this market did not see much of downturn during the Great Recession. Thanks ahead of time for your opinions.

Justin

@Mashika Johnson

Every wholesaler I have worked with has been a terrible experience. Not to say that they are all terrible and do bad business but every experience I have had has been poor. Part of the problem I see is that there is a lot of people moving into the space and a lot of those folks have zero idea what they are doing. It makes the  wholesale business look really bad. I can’t say I will never work with one again but I will do my best to avoid it. I wish you luck and hope you do good business. 

@Christopher Brown

The NNN property would be scary to me. I love NNN in a thriving market but food, retail, or any mom and pop shop will get crushed right now. We were looking at a NNN property in our market but have decided to hold Off because the tenants are retail. Though they are bigger retail stores it doesn't mean they can't shut down if business slows too much. I didn't read too much into the details of your SS deal but that would be less of a concern to me in this market. Though move ins could slow as people aren't doing or buying much of anything it is at least going to remain a functioning business even in a downed economy.