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All Forum Posts by: Kevin M Finley

Kevin M Finley has started 5 posts and replied 134 times.

Post: Do you put washer/dryer and refrigerators in your flips?

Kevin M FinleyPosted
  • Developer
  • Kenosha, WI
  • Posts 141
  • Votes 91

I have only actually sold one flip, but I have two in process and plan on doing the same thing. NO washer dryer. in my area they're all in the basement and it's just $1000 wasted tbh. 

What I do is have my local appliance company deliver and install a 4 piece suite, and then place in my listing that the appliances can be included on negotiation. I get a much lower contractor price and put nice desirable stuff in. My plan is that if they offer over asking, I include them, if they offer below, I ask if they would like to pay the list price for the units, and if not, return them for the $199 restocking fee. 

Point is, I don't want to just give them away, but they don't effect the appraisal of the home, and right now places not appraising is a huge issue... so I want to still have a way of cashing out if we have to drop the price a little. 

Post: Using an Fha 203k loan to flip a property

Kevin M FinleyPosted
  • Developer
  • Kenosha, WI
  • Posts 141
  • Votes 91

I purchased a HUD home with an FHA 203k loan in 2016 as my first flip. There are advantages and disadvantages, but be prepared to be very frustrated, and SHOP FOR A LENDER. My lender had no clue what they were doing and took 116 days to close, which caused me to pay 3 HUD extension fees.

A few important notes:

-They hold a 15% contingency, so your "real" rehab budget is $29,750. Your budget must be less and they release the remaining funds on completion. 

-You must work with a contractor. Your contractor must agree to their terms. 

-50% down and 50% on completion inspection. Not favorable to most contractors. 

-You must do and detail every tiny bit of work that whatever appraisal you get details. Example: If your scope of work says "Tear off and replace roof" and your appraisals states there is a shingle missing, you must also update your scope of work to show "replace missing shingle referenced in photo XXX". 

-You will revise every document 30 times. At the beginning of every month, be ready to send your statements in. 

Summary: This loan was a huge headache, BUT it allowed me to buy a home at 22 years old with 3.5% down that I now have $90k of equity in even after a cash out refi. The numbers worked and it ended up being a great vehicle to get me into an 80% position and a brand new house. Do your homework when finding a lender though, and just be prepared for what lies ahead. 

Post: Finance of America Commercial - Any Good?

Kevin M FinleyPosted
  • Developer
  • Kenosha, WI
  • Posts 141
  • Votes 91

Thought I'd revive an old thread. I am using an FOA line to fund the two deals I'm working on now. The rates and fees are competitive among hmls and pmls... however everything else is akin to an FHA loan and completely not worth it.

As others have stated, I was continually asked for the same documents multiple times and there is an extreme lack of communication internally. My first deal ended up almost getting pulled and I paid an additional $700 in extension fees because they couldn't close, and the second was delayed a full week initially and then a day at a time. 

Yesterday, we were supposed to close but they were never able to get documents over and also never told my title company the situation. As a result, my seller and his agent were stuck sitting at title for an hour and had to walk away empty handed and angry. They said they would get everything out for a 9am close today and at 8:45 I called the title company to make sure. They didn't have anything. It turned out that they had sent the closing packet to a different title company almost two hours away, and then tried to blame me for giving them the wrong name! We ended up closing 2.5 hours later. 

Stay away. Unless you have 6 weeks to devote to closing a loan and room for a few heartattacks along the way. I'll see how the draw process and loan completion goes, but I'm now in the market for a new funding source. 

Post: Checking Credit Score before applying for an FHA Loan

Kevin M FinleyPosted
  • Developer
  • Kenosha, WI
  • Posts 141
  • Votes 91

Don't run a hard pull- use CreditKarma or something that will do a soft pull on your credit. It actually won't hurt your score. 

This gives you Transunion and Equifax. For FHA, the bank will run all three scores and take the average of the three. This will count as a hard pull on your account. To be safe- try to do all of your mortgage shopping within a week. Have ALL of your prospective banks run your credit within five business days. This will count as only one hard pull on your credit because it is all for the same purpose.

I am speaking from experience because I pulled for a conventional- then fifteen days later pulled for an FHA. I picked the WRONG lender, and my report expired 90 days later (took 120 days to close). They then had to pull another report. In total, I had three hard pulls on my credit in three months, which does not look good, when I should have only had one.

Good luck!