All Forum Posts by: Nathan Yee

It was nice meeting everyone today! Looking forward to attending future events

@Michael Cohen - Talking to lenders as we speak. You're absolutely right. I don't want to get too wrapped up in the nuances at this point

@Alex Young - Shifting your mindset is really the key to taking more meaningful action. Here are some book recommendations to get you started:

◾The Millionaire Next Door by Thomas Stanley 

◾Rich Dad, Poor Dad by Robert Kiyosaki 

◾Retire Young, Retire Rich by Robert Kiyosaki 

◾The Millionaire Real-Estate Investor by Gary Keller
◾The One Thing by Gary Keller

Hi Ian, I'm also looking at multi-families out of state, Central Florida and Houston being a couple of those areas. The numbers seem to make more sense. Are you considering 5+ unit properties or 2-4 unit?

There are pockets in SoCal at lower price points: South LA, High Desert, San Bernadino, Riverside County and Inland Empire to name a few. Are you looking to owner-occupy? I think I missed that

Are you using a guaranteed maximum price contract? If so, do you have an performance clause built into the contract to reward early completion? My understanding is yes based on the 10% balloon bullet item mentioned. Do you split cost underruns with the contractor to encourage contractors to keep price low?

I plan on attending and I'm excited to meet you all!

@Jeff Greenberg - Currently, trying to network and connect with banks, credit unions, mortgage brokers, and direct lenders who specialize in home renovation loans for my first purchase. Getting an understanding of third party/lender fees, average time to closing, costs/timelines to lock mortgage rates, etc. before moving to pre-approval. Slightly worried that I'm consuming too much time on this though.

Originally posted by :

I was actually approved for a conventional loan with only 5% down. But I can only use that for a single family home. For a duplex I'd have to put 20% down. Which is why I'm trying to get a FHA loan. I'll be able to put 3.5% down and use it for the duplex.

Have you looked into a FannieMae Homestyle Renovation Loan? It's the only loan product I've seen that is similar to FHA's 203K - also a renovation loan. Down payments are as low as 5% w/higher mortgage limits for multi-units ().   Additionally, you can wrap the costs of rehab into a single loan. With this loan you can avoid FHA's upfront Mortgage insurance premium (MIP) costs of 1.75% of the loan amount and the lifetime monthly MIP (~0.85% to 1%) as long as the loan is in force. In speaking with others, FHA's MIP can really eat into cash flow which already difficult to achieve in LA.

Check to see if you qualify for this loan without the requirement for putting a higher % down for multi-units. I've read you'll need a good credit score 700 and above to qualify for better rates.

@Chris Mason - I appreciate the feedback. I agree that the granular details of the rehab would be put on hold until after the property is under contract. The 1.75% UPMIP attached to the FHA 203K is a good callout for emphasis. If I add this to the monthly MIP requirement for the lifetime of that loan, the debt service could be much higher.

Are you suggesting that a Fannie Mae Homestyle Renovation Loan may be a better fit for me?

@Jason Monroe - I believe the couple is trying to figure out how to monetize off of this purchase. Looks like there's a hearing set for October petitioning the Board of Supervisors to the reverse the sale.