All Forum Posts by: Keith A.

Kyle J. That's what I thought but thanks for clarifying.

When you purchase a property for let's say 100K and you pay an assignment fee of 5K do you use 105K as the purchase price even though in the records it is entered as 100K?

We have some properties bought with cash within the past 7 months. A couple had rehabs done while others did not. We would like to do some cash-out refi's on some of them to lock in low rates. I only have one loan personally so these would be conventional for now.

Do you know of any brokers/lenders that have 6 month seasoning for looking at value versus purchase price? They will do purchase price immediately but a couple properties had a lot of rehab done and that would leave too much equity. The others with no rehab would be fine doing off purchase price.

Thanks for the replies.

Bill G. It's a cash deal so no financing involved.

Wayne Brooks I am leaning this way but would need to follow up with the owner which is also a realtor and investor.

James Vermillion This could be the safest but I will need to check if they will even write the policy if that 4-pt fails on the electrical inspection.

I am in the process of closing on a property and was setting up the insurance with my agent. The policy requires a 4-pt inspection on the property and I have found that the electrical box needs to be upgraded.

My question is can I or should I make this repair prior to the closing so my policy can start on the closing date or should I wait to close? Also, to make it more interesting there is a tenant in place already.

Let me know if there is a common way to approach this scenario. Thanks!

I've been trying to find recent activity versus the older stuff. Their realtor mentions it is hard to comp this area for the same reasons I mentioned above.

Thanks J Scott. I'll check around for someone to give me some help on this one. Paying some is not a big deal to validate.

Marc Bodinger This isn't from the bank. It is a realtor that bought it from the bank in 2008 and rehabbed it and has been renting it and now wants to sell it.

I wanted to see if others are seeing the same scenarios. I buy properties that need rehab and also ones that have already been rehabbed.

One that I am looking at has already been rehabbed but there are no comps close by to support the sale price. From a rental perspective (we are long term buy and hold) the numbers work at that price but I still don't want to overpay.

Any sales in the area seem to be from foreclosures and are low. My fear is purchasing it and then going to refi it later and finding the value to be lower than what we paid.

Any thoughts or suggestions would be appreciated.

Thanks Brian Hoyt. That is what we are thinking as well.

Thank you for all of the great advice. This gives me some excellent viewpoints to help make a decision.