All Forum Posts by: Account Closed

@Stephen Russell - Matrix Electric Co out of Mesquite, TX. I know the Owner very well. If you'd like his personal cell phone number, I'd be happy to pass it along. His name is Daniel Ponton.

He did the full rewiring job + new breaker on my personal residence.

@Arianne L. Do you keep all your properties in an LLC so you do not exceed the typical rules for Fannie Mae and Freddie Mac which say you can exceed 10 financed properties?

@Arianne L. That makes sense. I'm a Lender myself so I was trying to think of it from a lender's perspective. 2 years of business income was probably huge! Not sure that deal could happen at the one year mark. This is awesome in every way possible. I'm looking at tickets/flights to the flip hacking live event and attending my local REIA event tonight.

Super inspirational!

@Arianne L.

Hi Arianne -

First of all - thanks for sharing! Love it. I am curious how you got approved for the 6 conventional loans for the 24 unit deal. It appears your husband was still working at that point? Was that what allowed the income to qualify or were they going off your business profits to date? 

Perhaps I'm a jerk, perhaps it will serve me well in Real Estate. Who knows.

But here's my .02

I would put my foot down and tell her sorry that's life. Deal with it. 

Matt Hoyt is right. You are all overthinking it. Credit inquiries make up less than 10% of the score.

 This works both ways, Sam. As a Lender, we have to make sure you're a credit worthy borrower before we'll invest any time in you. Why would I waste my time going to bat for someone on rate/cost if you're just going to shop me around and let other lenders just tell you what you want to hear?

"Oh he has 3.625%? I've got 3.5%"

If you're serious about doing something, then have your credit ran. If you aren't serious about doing something then I'll give you a quick 2 minute analysis and I'm done. 

So long as the company is reputable and you're dealing with an experienced Loan Officer, and you're serious - there should be no objection to credit. 

CFPB 45 day rule

I have to chime in here, not trying to thread jack but it is along the same line. 

I have been thinking lately I would want everything to go under the LLC not for the supposed protection it provides (I am not risk averse.. I don't think most of us are..we are Investors after all ;) but rather so it keeps loans out of my name.

I know I can go up to the 10 unit limit with Fannie/Freddie -- but why should i? Just because I can, doesn't mean I should. My theory is I want to keep my investments separate from my personal business. I don't want lenders to get a migraine when trying to calculate my DTI/depreciation and everything else that goes into rental units if I'm trying to refinance my primary residence or second home. Just having a tenant in the unit covering the mortgage isn't everything. I've seen rentals kill deals time and time again on primary residences. Last thing I want is to complicate my personal affairs.

Am i wrong in my thinking? Does anyone else do this?  

One thing you should understand is you have a 45-day window to shop around.

https://www.consumerfinance.gov/askcfpb/2005/What-...

Also understand if you are shopping for rate you are going about it wrong.

FHA may have rates in the 3's but you have UFMIP (Gov't Surcharge paid UPfront) and ongoing MI (Mortgage Insurance) monthly -- so what are you really saving by focusing on the rate itself?

I assume the 4.375% is on a 30 year fixed, conventional? Look at your closing costs. Do you want to pay points (prepaid interest) just to obtain the lowest rate up front? 

You need a lender who can close quickly and efficiently. If you go for the "best" rate you may find yourself in a frustrating process and lose out on the property.