All Forum Posts by: Laura Spaulding

I have researched some previous posts about the Robert & Pamela Smith Investment LP. I saw that no one was funded and things seemed sketchy. They sent me a loan approval without really anything other than a one page application.  So no due diligence at all.  When he sent me the loan approval, I responded back with this email,

Hi. I don’t think your math is correct on the loan repayment (mortgage) amount. 30 years of $540K at 5% is a monthly payment of $2898.84.
Am I making a 20% downpayment to you and then another $27,000? I don’t understand that clause and why the loan amount went up to $567K in the contract.

I received this email back from Daniel, who is the "underwriter".  

Hi Laura, We do not use mortgage calculations as they are most times wrong.Kindly review the calculation breakdown below and you will understand how we arrived at the monthly payment
The loan was calculated for principal and interest at 5% annual interest for 30 years
Loan amount : $540,000.00Number of payment: 360Monthly loan payment: $3,750 ($1,350,000.00/360)Cumulative payment : $1,350,000 ($810,000+$540,000)Total interest paid : $810,000($27,000x30)
It is believed that when you need a loan of a certain amount, you should be able to come up with at least 5% down payment.
The 5% down payment deposit of ($27,000) is required for the closing of the loan which is a 100% refundable deposit that would be paid out along side the total loan amount at funding .. making it a total sum of $567k
This done to prove our financial capability towards utilizing the loan funds and paying back the loan once due
There are no additional fees or surprise costs.

Does this seem odd to anyone or is it just me?

@Luis Ramos That's the same offer I got. no money requested up front. the Daniel guy didn't speak English very well though. seems fishy. can't find anything saying its a scam but also can't find anyone that has done a deal with them.

@Paul Moore is it an online training or in person?

thank you for the info.  its worth about 75,000.

I purchased a condo, rehabbed it, and there is a tenant in it currently. I contacted my lender to do a cash out refi and they said the condo was not Fannie Mae warrantable. I had never heard about that and they said because there was so many people who were behind on their HOA fees that I couldn't re-finance the condo. Has anyone had that happen before? If so are there alternatives? I was going to BRRRR this property.

@Patti Robertson Thank you. I finally got a copy of the RFTA, which HUD provided to me. The PM filled it out and put on there that me, as the landlord, would pay the water, sewer and garbage. Here lies the discrepancy. He then told the tenant to put those utilities in her name and never mentioned anything to me. So HUD wants me to lower the rent to $85 to accomodate that change. I declined and will issue her a 30-day notice to vacate. I have listed the property for sale and I want nothing to do with having a property manager again. Hopefully a quick sale will remedy the situation.

I have a question I need some guidance on. I purchased a home to hold as a long term rental in GA. I am an out of State investor. I hired a property manager who showed the property for about a month and told me he was only getting section 8 tenants wanting it because of the location. I authorized him to register for section 8 and he did. He immediately got a tenant. My rental amount was originally $1150 but HUD knocked it down to $1025. I agreed, tenant signed the lease and this is where things went awry. Tenant moved in April 12th. I wasn't notified of it till April 19th so utilities were still on in my LLC. Confronted Pm who lied about love in date but lease confirmed it when I received lease from him on the 24th. He also stated he got pro-rates rent for April and the security deposit was in cash. No receipt on either. 3 weeks later he sent both. No rent cake in for May. Called section 8 and got the run around. Then they said rent would be paid for April, May and June on June 1. June 1 came around and they didn't pay. Section 8 was paying 100%. So at this point I have a non paying tenant in my home for 3 months and it's really not her fault. Section 8 requests a copy of my lease, which was completed by the old PM. PM finally turned over HUD inspection docs showing house passed and signed lease. Section 8 is now saying tenant can't pay any utilities and I need to knock off another $85 off of my rent. I said no way get her out of there. In the meantime I have been searching for another PM to no avail. Found one who wanted to gouge me so I just decided to list the home and sell it. So question is do I pursue legal action against the PM? Section 8 or both? Section 8 emailed me yesterday and stated they are not going to pay any rent and will find other placement for the tenant. Sorry for any typos. On my cell.

I have a clause in my lease after learning the hard way that states anything under $100 is the responsibility of the tenant.  This makes them think twice about frivolous calls.  

I have a clause in my lease after learning the hard way that states anything under $100 is the responsibility of the tenant.  This makes them think twice about frivolous calls.  

@Steve

@Steve Rozenberg thank you.  fantastic questions.