All Forum Posts by: Kerry Boyle

Check out this website: http://www.myfico.com/credit-education/credit-chec...

TLDR: Multiple inquiries from auto, mortgage, or student loan lenders within a short period of time are treated as a single inquiry.

My best recommendation is to call many lenders and talk with them on the phone, figure out if they answer the phone, what their process is, if you have a good vibe, and how they handle tough questions regarding duplex/using one side as a rental to supplement income.

Narrow down to 2-4 lenders that work well and get a prelim quote from all of them in "a short period of time" and choose your favorite. Notify the others that you were prelim-quoted something less and chose to move forward with the other lender.

If you don't want to do any of that, call a broker. They have done it for you already and you pay a small fee to work with them. Some of the time, their rate may be better with the same bank than you would have had going direct to that bank.

Don't really have much to add, but I saw Eagle Rock Resort and figured I would stop by.

Eagle rock is great! I am originally from the Hazleton Area (this spelling is the actual spelling, as the founders misspelled it). 

This is a very state-by-state specific questions (and in some areas, county specific). I'm not familiar with Arizona.

In some states, HML's will refinance the cash-purchase foreclosure that the borrower's made to increase liquidity again. In other scenarios, the HML can buy the property with a portion of the borrowers money and they can transfer the property over to you after completing UW.

I'd love to have other lenders chime in on how they work foreclosure purchases.

If you have someone help with the down-payment (and I'm assuming closing costs weren't financed - so that too). Then just about any HML will go to 65% ARV... that is a generally conservative number. Employment doesn't usually help, as HM is asset-based unlike a conventional loan that is income-based. I have no idea what license you would be referring to.

I think some of this information is valuable, specifically @Boris Grinberg post. 

I would only add, that references should be 2-3 title companies that the lender has done closed with in the past month.

• Confirm closing was in the name of the lender.
• Ask if closing was postponed due to the lender.
• Ask if any last minute changes were made in favor of the lender (points, interest etc).

I haven't personally done this, but I think it is what I would recommend to any borrowers requesting a reference from any HML.

Running away seems like a silly idea. 

Offer what you are willing to pay. Consider what your down payment is worth as monthly income, consider appreciation, consider time.

Take your net income not including debt service and factor in what you think you will get in a loan. 

If you have 5% 30 year and put 85k down on a 300k purchase you would owe $1,158. If net cash-flow not including debt service is $1,550 you are making $400/month on $85k. 

I think 375 sounds too high. 240 and a bunch of people would be willing to gobble it up, in a relatively competitive market. Also appreciation cannot be ignored - Anacostia has done well in the last 5 years.

Welcome! Feel free to connect with any questions.

Yes. If the property is worth 150k and you want an 80k cash-out it would be easy. Number of months doesn't matter that much. Actually at just over 50% LTV credit doesn't really matter that much either.

If you assume a 12% rate on 80k, it would be $800/month I/O payments and you are left with $836.50 after HOA, a 5% vacancy, and taxes. You still have maintenance (5%/year?) and insurance which would put you at a slightly negative cash-flow. It would allow you to get your cash-out and pay off the cards.

Rather, I would recommend buying the property with a HML and putting 25k plus closing costs/fees (paid with your credit cash). You will be much less extended and be in a better position at the end of the seasoning period for your LT lender (particularly with your credit).

You can also hire a hard money broker to guide you through steps 1-5 and 8. Won't be as cheap, but may be worth your time - allowing you to focus on finding property/contractor. 

If you want to be cheap:

1. Find a list of direct lenders (also get a few local contractors). BiggerPockets.com; personal referrals; local and national lenders.

2. Call them and figure out what they require. Downpayment, tax returns, DTI, LTV/ARV/Rehab percentages, bank statements, LLC or sole proprietor.

3. Get estimate of rates.

4. Pick the one that is best suited to your needs. Speed, cost, requirements, vibe.

5. Complete application and get a pre-approval.

6. Find properties. We buy houses campaigns, marketing, MLS, referrals.

7. Send contracts out en-masse with low EMD and enough contingencies to get you out for any reason. 70% Rule of thumb, $10 EMDs, financing/inspection contingencies.

8. When you go under contract (Congrats!), review and submit required information to your lender. Appraisal and title work start, get rehab bid from a contractor.

9. Close and start repairs... rest is another topic.

Short sales are perfect for Hard Money. Make sure you have some money in the bank or at least access to money. Few HMLs work with no experience and no money, and those that do will be getting a pretty penny.