All Forum Posts by: Keith C.

@Arthur Voskanyan You understand your signing a legal document ? Similar to when you open a credit card application ? Sign a car lease ? You know if they found out your using the car as a Taxi the lender can impound it ..

@Arthur Voskanyan but I see your point as I always wonder why more People don’t speed if cops are not around ,

Pretty much I don’t understand why anybody keeps any laws :)

@Austin Sine One of my hangups on deals is the period of time current owners have the property. If they are short term owners under 3-4 years I’m out .

Brokers and owners always respond what’s the difference ? And they have their opinion , but i only buy seasoned deals - where owners had the property for a while .

For one , if the owners are just looking to flip it , than I already know I am paying a premium . I don’t buy full retail price - even Potatoe Chips.

The other reason would be even worst - where they may be actual issues with cash flow , repairs , or any other reason they want to get out of.

I also fully understand there are different levels of investors , some buy full distressed , sometimes vacant or worst evictions required - they put in a few dollars , evict some and and make it cash flow positive - ,, good stuff ,, but not for me.

I may loose some deals but I’d wager 90% of deals someone buys where the current owner owns it less 4 years is a loosing deal.

Stay safe, Be smart

@Caleb Bryant First , Regarding the market as it stands today’. It’s always about buying right - you make your money on the buy ,, anyone can sell a property at some price ,, the challenge has always been buying it at the right price .. so when you sell it your assured at making money —Think about that for a second .. It’s the Buy - Not The Sale where wealth is determined ..

Whatever markets you liked & knew yesterday it’s the same today ,, of course its getting a beat down yesterday , today and Maybe another few months ,, Things will normalize and markets will stabilize . For now Money is super tight , loans are very difficult — so if your buying make sure your getting a deal , Lay an embarrassing offer out there - if the seller or broker is insulted— oh well look for the guy next door who’s probably selling as well- Make low offers that you can afford and if one or perhaps a few stick - you just created wealth for yourself .. Make the embarrassing offers - it will be worth it. , stay safe -

Id like to add one item to this important thread. I agree with many in the room that if the deal is sound  and a cash maker - it still is sound during this Pandemic - Don't let it  a 3-6 month temp matter make you step away from the plate -- If you see a fast ball down the middle take a shot

That said --  listen to this important new reality .. Apartment investing , flips and pretty much all varieties  of RE were on a major upswing, Interest rates were low , financing was relatively easy to qualify  .. Along  comes March 2020 we just thrown a monkey wrench in this upswing engine.    Many lenders just shut down  ( Non QM  etc ) ,, many loans will be much more difficult to qualify for most people . And the smaller investors who threw darts at a map to pickup their next rental income will be catching up paying up on current loans and chasing tenants.. 

The entire industry will take a step back and Valuations will certainly change in many areas in the country.. Chasing deals will take a step back until easier money ( lenders ) returns . Until loans are flowing like they were Pre March 2020 --we are in a long overdue slowdown on investment properties. So if you have a long term eye than like 4-7 years swing at it ,, If you were counting on pulling money out , refinancing or flipping it down 2-5 years like many have been doing -- Id step off the plate and wait for another pitch when this dust storm settles..

@Caleb Heimsoth how can it be a great buying opportunity?

Has anyone lowered there asking prices yet ?

have banks started foreclosures on default loans ?

Are borrowers 90 days plus overdue yet and likely not able to catchup to payments as occurred in 2008?

We are in middle of the first inning of a 9 inning game - let’s see what happens in next 6- 9 months - what programs and money actually were delivered!

Are borrowers making timely payments !

Are sellers holding firm !

Are hard money lenders liquidating assets from borrowers who are months behind!

I wouldn’t start buying just yet - there too much uncertainty,, why do you think most Non QM lenders pulled the plug,

If your credit score is under 650 today it will be very hard getting a mortgage . What do you think that pressures places on sellers who just lost 45% of the their buying pool?

I’m on the sidelines cheering for All of US but betting on no one ,, Yet

@Sam Leon at this points it’s likely up to them , if they had a place pegged and prefer to move they will . If they don’t they will likely be no better or worst than a common lease tenant , but Unfortunately they may less concerned in paying monthly rent as they have both the law and the preparedness of knowing they were going to move , it’s like they have nothing to loose by not paying and than moving when they are ready. I hope they don’t see it as that

@Melissa S Hollon Banks look at “ Housing Events “ with the most weight . Any payments and balances related to housing such as late pays , foreclosures and short sales ,

Of course other credit / payments are reviewed as well , but if there was an acceptable and documented exception for a student loan , car payment etc they would likely not hold it against the borrower .

Again these guidelines are all new for people and lenders so everyone is on a learning curb.

Good luck

@Matt Higgins As they say This Too Shall Pass..

Every market drop or slowdown has always been for one reason or another . It lasts a period of time until someone figures it out and than we are off to the races again . It’s like a championship Boxing Match . it takes a few rounds for the champ to win and he may even loose a round or two ( here we are in a lost round ) but the champions get up and the knocks the dude out and brings home the golden glove . In this case if we all just calm down we will live to see another day - and another rent check

God Bless

@Adam Tafel

As a Loan Officer Anyone who is in the process or was considering a ReFi or new Purchase I suggest you continue to make timely payments .

Any new lender will run a supplemental credit pull which will have the most current history from your mortgage company . Even though borrowers are exempt from making payments for 90/120 days depending on your bank leeway - No New Bank will look lightly on skipped payments. They have no obligation or govt incentive to start a new loan and rely strictly on your credit worthiness and track record.

If borrower was actually laid off there is concern for future payments and or if the borrower just wants to take advantage of a free period - banks see this is disingenuous.

In summary if a new loan is in process or possible in the next 6/12 months - I would advise if you can make the monthly payments on time ,,, or more than likely the new bank wont fund it . Let’s all make out of this period health and wealthy - stay safe and smart

@Sam Cherry for those who run Airbnb s and receive a 1099k at end of year you too can apply for an SBA loan