All Forum Posts by: Lee Hines

This was on the news in Phoenix last night. The Maricopa County Recorder's Office (covers all of metro Phoenix) is warning homeowners of what they're calling "equity skimmers"... investors who swoop in and buy houses below market value. 

https://www.azfamily.com/news/...

We just used Magnus Title in Ahwatukee for a deal. All went well. They were easy to deal with.

15905 S 46th St. STE 170, Phoenix, AZ 85048

At the suggestion of my agent, my gf and I are working with Michael Radcliffe at Nova Home Loans. Banks didn't like me because I don't have any W2 income. Michael has been great to work with and understands that not every investor fits into a neat little box.

We have 3.625% locked on a 30 year fixed with 25% down and 1 pt. on a 2 units property in Phoenix.

Find the local Facebook page with the most activity and ask to join. Ask for recommendations there. Once you have access to the page, you can search for keywords like, "handyman," "electrical," etc. It will be clear who is are the good contractors.

Richard - Seems the banks are way more concerned with W2 income than assets. This came from reforms after the 2008 financial crisis. I understand there are rules, but it's frustrating to have this limit right now. Once I've reported rent from the two properties for 2 years, banks will consider that income. But you'd think someone with free and clear real estate worth around $650K could get a loan for a $250K rental house!

After listening to Bigger Pockets shows for weeks, I decided to NOT watch Dancing With The Stars! My first move was to rent out my son's old bedroom to a friend. That wasn't too tough as I mostly spend time at my girlfriend's house anyway. Getting rent for a couple of months really got me thinking it was time to find a property.

When a "What do you want to buy" thread popped up on my local Facebook community page, I answered, "Investment real estate," just to see what happened. No surprise that a few agents responded that they would love to help. One said she had worked with a lot on investors, so we began a dialogue about what I was looking for. After a couple of offers got turned down, she called one day very excited about a potential property. It was well below market, but hadn't been lived in for years. It was Thursday and the property would hit the MLS on Friday. We made a quick run through and submitted the offer that evening. ARV was just under $200K, and I paid $130K cash. A few months and $20K in rehab costs and it was not only rented, but the tenant really wanted to buy, so he paid for a 2 year option to purchase at $210K. Selling wasn't the plan, but I've found being flexible in business has always worked out for me. Whether or not he'll actually buy is yet to be determined, but either way, I'm really happy with the outcome of my first deal.

Now I'm trying to figure out what to do next. I added a second tenant to my personal house and am trying to decide my best course of action. I haven't had W2 income in years so traditional financing for another property isn't likely. Both of my houses are free and clear, but it's frustrating that even with other assets, banks won't lend to me. I may sell the first house and buy two less expensive properties, may put down a sizable down payment and partner with a friend... still working it out, but am excited about the possibilities!