All Forum Posts by: Kindrell Hutchinson

@Vinod Dasani Thanks to you and others that have helped me see things that I wouldn't have picked up on. @Ralph R.

@Vinod Dasani Thanks, I managed to get them on all on three separate loans. So I can pay one off at a time.

@Ralph R. @Vinod Dasani The appraisals came back, The Duplex that I am buying for $110,000 came back at $128,000 The SFR buying for $85,000 came back at $87,000 and the last SFR buying for $83,800 came back at $77,000. I agree about the high rate of 7.9 but given how hard it is to get approved for these loans being a new investor, I can take the payments along with the lump sum of 50% of the loan I will pay off next year, have them all paid off in less than 5 years

@Ralph R. His lawyer informed me of the sellers goal unintentionally (Its a practical move as a owner financer). He wanted to stop worrying about the hassle of management and just collect a check (He is retiring and actually selling off half of his inventory and leaving the rest to his tow kids. Also, with the plan having a high interest rate that is spanned out to 30 years. worse case scenario, he'd get the property back if I am unable to pay.. I am pretty financially stable and plan to pay off one of the homes by 2019 and refi the others after maybe two years of income. 

Question: Given that these homes will not be reported on my credit, would that be a benefit for me to have going into finding the best deal to get them refi? Seeing that I have a income increase?

@Steve Vaughan @Ralph R. @Jason Chen These homes are being issued as a warranty deed. There is only one realtor involved. She has done a deal or two with this owner before. The seller is paying 3% commission fee and the closing cost on my end is $4,111. The quote for Insurance is $299 per month and Taxes is $328 per month on all three properties. I look at the rent rolls dating back to 2013 and none of these places went a full month not rented and one home that not on HUD has paid every month even the tenant after them. That particular property is a 5br home so its highly sought after in my area. I met with the seller yesterday and after going back n forth about my financing terms, it turns out it would not allow me to get one of the homes paid off until I have made the down payment of 45k, paid the mortgage down to $180k, then paid 1/3 of that balance to have a home signed free in clear in my name. I would have paid out roughly around $200k before I could get a home free n clear. I was definitely been taking for a ride!!! Thanks to you guys I was able to get all three homes into three mortgages. I would then have the option to pay off one free in clear or get any of them refinanced. SN: You could tell the seller was reluctant to do it but, his lawyer made sense of this deal for him that its the ethical thing to do. This is technically my first deal. and to be able to get three properties at once is a big deal to me. Maybe not on the terms a experienced investor would do so for, but OK for me. I definitely learned a lot so far on making deals. Thanks again you guys and @Account Closed

@Ralph R. The tentants work together to make sure the yard is kept up. Im my county the garbage is included in the Electric & Water payment. To give you the numbers completely There are 3 units I'm purchasing, one SFR rents for $1000 another SFR for $1025 and a Duplex $800 each side. All utilities, lawn, and garbage is the tenants responsibility. The terms of the loan is for $278,800 ($110,000 for the duplex, $83,300 SFR, and $84,500 for the last SFR) $45,000 down 30yr amortized at 7.905 int. For payments of $1700mth/ giving the taxes and insurance (which insurances will be bundled) is roughly $600. Do you think with what you guys would implement in Cap Ex, Vacancies, Maintenance, PM I would or wouldn't have a good ROI? there will be npt prepayment penalties as well as a clause of if an certain amount is paid that comes to the cost of how much each home is worth I could either sell off/ or get it seperated from the loan that is still being paid on? I took notes from what you guys have said and plan to negotiate on tomorrow at 1:30pm, if we can't come to a comfortable terms I will walk away from this contract based off of appraisal contingency.

@Ralph R. Also I mentioned 3k for roof repairs because there was an incident on one of the homes where someone patched up a roof on one of the properties wrong and it needs to be redone. this happened because of a tree falling on the roof. the yard water and sewer the renter pays and takes care of.

@Ralph R. I completely agree. I need to ensure that there is some wording in the 1 loan that allows me to sell off one of the properties without issue. I ensured that there is no prepayment penalty. I also agree that if he has 300 homes these are the least profitable that he could possibly have. The owner told me he never does 30 year mortgages but "for some reason" he is doing it now. 

@Steve Babiak I understand. I will be meeting with the owner today to discuss somethings.

@Steve Babiak What stipulation would you recommend? The plan is to do a blanket loan, but I didn't think to have a stipulation.