All Forum Posts by: Account Closed

 Initiation fee? Was it part of a 20% down requirement or an origination fee? You could always post or email an itemized list of the fees to have responses and comments on what seems weird if any.

 What is the status of this issue? Is the company QuickLink legit or did they make a quick dash with your deposit?

Most of the ads seem to say most HMLs will lend 65% to 70% LTV for rehab projects; but in reality, most of the quotes seem to be in the 35% to 40% LTV range. They often mention only funding 80% of both purchase and rehab cost upto 65% LTV and require the 20% down at closing. Rates of anywhere from 12% to 15% and additional 3 to 5 points.

Are you guys also getting similar rates or are there better rates out there? Either from national HMLs, local HMLs in your area or in Florida?

Heard or aware of HMLs that typically finance 100% of both purchase and rehab cost?

 lol @ what happens when time runs out.. usually you would need to have a clear exit strategy before going in and for some, it is to have the property sold "ASAP".

Most of the ads seem to say most HMLs will lend 65% to 70% LTV for rehab projects; but in reality, most of the quotes seem to be in the 35% to 40% LTV range. They often mention only funding 80% of both purchase and rehab cost upto 65% LTV and require the 20% down at closing. Rates of anywhere from 12% to 15% and additional 3 to 5 points.

Are you guys also getting similar rates or are there better rates out there? Either from national HMLs, local HMLs in your area or in Florida?

Heard or aware of HMLs that typically finance 100% of both purchase and rehab cost?

If we go as far back (or recently) as 1974 to review the consecutive positive yearly stock market returns, 8 (82 through 89), 9 (91 through 99), 5 (03 through 07) and 6 (09 through 14) has been some of the streak of positive returns; so technically, it can be another 8 or 9 years before there is a negative return or sooner or longer.

Would have to take a very close look at the market and various indicators to determine if there is any pending doom. Are you hoping for this correction or just curious? That would be quite a hit.

According to this article:

http://finance.zacks.com/relationship-between-stock-market-real-estate-prices-10244.html

, it doesn't appear there is a direct credible correlation between the performance of both markets: 

...there's no confirmation of causation between stock market indexes and demand for homes or their prices....The strength or weakness of the U.S. and global economy appears to influence both stock and home prices. While this is not surprising, it does not display any other direct relationship between the two measures.

but then again, it is not unusual to have a different report or article that would claim there is a correlation.

You could always look at the historical returns of both the stock market and the real estate market during a certain horizon to see it there is an actual correlation. The trick with real estate is that the returns in various markets could vary substantially.

A negative net income on the income statement does not mean that in fact the company is loosing money. Depreciation, especially in real estate could and often is significant and is often used as a tax shield to lessen the tax burden.

In this case and for the referenced fiscal year, Total revenue = 398,874; Total expenses = 420,689 but 165,516 of the total expenses was just depreciation which does reduce the taxable income.

This is why the cash flow statement often helps give a better idea of how money is actually flowing through the company.

 Based on this article at realtor.com, do you see any variation from what you were trying to do?

Calculating absorption rate

Thank you for the information. Very good website. Based on the sales results in some of the areas that I looked at, this does sort of confirm that most of the auctions sell at very close to or at market value (might be very few exceptions). 

The discount would need to be deeper and very. They are almost getting full price for the properties which may still require repairs.