All Forum Posts by: Kyle Baker

Hey Esther. I am a local realtor to the greater Indianapolis metro market. Feel free to shoot me a PM to see if we can benefit each other. Talk soon!

I agree with the others saying Fountain Square has completely changed over the years as seen from the HGTV show "Good Bones". Id be more than happy to answer any questions you may have and/or help you find your next property. Look forward to hearing from you. Cheers 

Hey Jimmy! Congrats on your success in Columbus. I am a local realtor in the greater Indy metro area working for the leading brokerage in the market F.C. Tucker Co. Feel free to shoot me a message as I love working with like minded individuals. Talk soon!

Hey Tyler! This sounds great and I would love to network with local like minded people. My email is [email protected] please add me to any communication list you have. Thanks! 

Hey Keivan. I know you asked for Cleveland and Columbus so feel free to ignore this if you arent interested but I am an investor friendly Realtor® located in Indianapolis IN. If youd like to see what opportunities are in the Indy market feel free to shoot me a message. Good luck!

Agents stuck in markets of the past haha. Especially in 4th quarter. The sellers dont hold all the power anymore like they have in the past. I dont see the GAP coverage offers being nearly as common any more. How many days has it been on market now?

I am currently working the detail on an assumable deal and I agree now is a great time for them and I see them making a comeback. Its a pretty specific scenario where they make sense but here is essentially how they work...

First the sellers mortgage company has to allow for assumable mortgages. Assuming they do then the new purchaser has to qualify for the left over mortgage. If they do they can take over (assume) the existing mortgage as well as keep their interest rate. Keep in mind only certain financing terms can be assumed. They have to be government back loans. Think FHA, VA and USDA. Conventional loans, from my understanding, cannot be assumed.

The second part of your question....yes you can take out a second mortgage in order to pay the equity or of course pay cash. There are also some closing costs involved so expect some fees just like getting a new mortgage but not nearly as much because they don't require things like appraisals. Okay let me tell you my example and hopefully it answers any other questions. 

My client got a VA loan for 180k loan about 16 months ago. He is now potentially going to be transferred out of state and needs to sell his home. The properties comps are now around 200k which leaves him around a break even or possibly even in the red a little after closing costs and realtor commissions. Bring in the assumption!

SO first benefit for a potential new buyer would be his 3.7% interest rate. Second is with him having a VA loan there is now mortgage insurance. Win win!

NOTE** a buyer does not have to be VA eligible to assume a VA mortgage, however if the new buyer is not a VA eligible then the original VA purchaser would "lose" that VA eligibly amount of the loan until it is either paid off, sold or refinanced. I know that sounds a little confusing so let me try to explain further.

Depending where you live you have $xx to spend on a VA loan. In Indiana the VA loan cap as of Jan 2022 is $647,200. So with that being said if you had a VA loan of $180,000 then you would have $467,200 left. 647,200-180,000. So until that existing VA loan is paid off the original borrower would have that $467,200 left over. Again I know that can be a little confusing so I hope that made sense.

All in all it takes a very specific scenario for this to work but I think it can be a great option. For my client we will try to get a little more for the house as the new borrower is essentially buying the interest rate. Comps for his home are around 200 and I think we can easily get 210-215k because of the rate.

Feel free to hit me up if you have any more questions. I hope this helped 

 Thank you Nathan! That is exactly right

I think you can still find cash-flowing properties you just need to think a little more creatively. Its not so much the purchase price as much as it is the interest rate that is hurting your potential deals. I would look for options where the seller or yourself (or both) buys down the rate. An even better option in my opinion would be a 2-1 or even a 3-2-1 buy-down. This type of buy-down has to come from the seller. The seller does a temporary buy-down the first 2-3 years at which time the interest rates have hopefully come back down to a cash-flowing number. 

In your example the loan would be for 200k (80% LTV) and the first year your interest rate would be 5%. Second year would be at 6% and the third would go back to the original 7% but again buy that time the ideal scenario is the rates have dropped back down again and you refinance at that lower rate.

3-2-1 scenario is the same although it would be 4% first year, 5% second, 6% third and back to the 7% on the fourth. If rates drop before that time period you can keep that unused money as it was essentially pre paid interest payments sitting in an escrow account waiting to be dispersed. If you would like to see more specific numbers and how much it would cost I can do that for you. 

I am a Realtor in Indianapolis IN. If you ever wanted to how far your money can go in the midwest feel free to shoot me a message! Cheers

Hey Jayson! I think this is a very common way of investing especially when you live in a more expensive area like San Diego. David Greene wrote a book about it called " Long-Disance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties". It's one of the Bigger Pockets publications. I would highly recommend that book. I am an investor friendly Realtor in Indianapolis IN which has been a great location for Real Estate. Send me a message and we can get you set up on an auto search so you can see all the properties as soon as they hit the market. If you like anything you see I'd be more than happy to go do a virtual showing for you. Talk soon!