All Forum Posts by: Lee Judd

@Adam Bielous Let us know how it works out for you.

@Jon Gibbs

What is rent projections for the property? We would look at the additional income when looking at a loan like that. Without it I think you would be at the upper limit on D/I ratio.

@Allen Berrebbi

I was able to buy a 4 plex with 5% down and a little bigger property with 10% down both with seller financing. In my case the seller wanted to finance them to avoid the capital gains tax hit but we still had to get creative with terms to get him his price. Helped to have a relationship with the seller before hand.

Proportionally your closing costs are always going to be higher on smaller loans. As a lender none of your fees look out of line if you are getting the rate bought down for the points you are paying and based on the rate I would say that you were. I always recommend shopping your insurance with multiple agents even to existing customers because rates increase yearly and just because the insurance you start with was the best deal doesn't mean it stays that way. 

If you know your closing cost going into negotiations than you can make your offers accordingly. Once you develop a relationship with a bank you will be more familiar with their fees and terms and will know what to expect from them on each deal you do. From my experience when working with mortgage brokers your interest rate will be lower but your closing cost will be higher. If working directly with a portfolio lender than your rate will be higher but closing costs will be lower. 

Good luck getting started investing in real estate.

@Adam Bielous I have had good luck in my area with existing tenants. I have had to work with a few recently but that has to do with the current environment in general. In my experience the loss of income of having an empty rental isn't worth kicking someone out just to get my own tenant at slightly higher rent. You should be able to have a new lease signed anyway and start increasing rent if it below market.

@Pamela Gombe

To add to @Walid M. comments those community banks and regional banks are looking for opportunities to make loans. You may have to find the right one that understands the type of property you are investing in though. Banks are not created equal and are made up of individuals who have different skills, knowledge and interests. So find one in you area that you mesh with and you will be able to have a long relationship with them.

Chad

Where is the home located? We make loans on manufactured homes in NM & TX. 

Lee