All Forum Posts by: Marimar Hernandez

Hello,

How much did the software cost and what's the best way of getting it?

Thanks!

Thanks!

Taxes have increase by 19%. Currently, we are breaking even. There is a NEW house with 4 bedrooms but 328 sq ft smaller asking for 2,850. Another new house 550 sq ft bigger asking 3K. Makes me think that a 2,900 is about the right price. That would be a 11.5% increase. Is that too much? Should the lease be 1 year? 2 years? Thanks!

Hello,

We have tenants in our home in Morgan Hill CA since May 2012. They signed a 2 year lease. The rent we wanted was 2,800 but discounted it to 2,600 per month for a 1 year prepayment for the first year and then 2,600 per month on a monthly basis for year 2.

We are getting ready to renew the contract and I am trying to determine how much I can increase rent. Our taxes are going up and so is insurance.

They pay for ALL utilities a gardener, and even their alarm system. They are extremely good tenants. They always pay on time, take care of the house and always keep in touch.

Any suggestions?

Thanks!

Hi! I am back!! Thank you so much for all of your help! We ended up buying a condo in San Jose in January 2013!!!! 1 month before of our goal! And perfect timing too! We welcomed a baby boy in February 2013.

Our house was refinanced as an investment property in July 2012 at 3.75% 30 year fixed; the tenants are incredible and are taking great care of the house.

We were able to save for a nice down payment on the condo. Financed the rest at 3.5% 30 year fixed.

New question: We got the condo at a incredible price through a short-sale, they are now selling for 205,000 more. It is tempting to sale, but since we have not been there for 2 years, the taxes would be painful. I am now thinking that the best way to continue investing is to rent it out and by another primary residence.

The condo would give us a profit of a little bit over 1K per month (since mortgage is low because of big down payment). We have been pre-approved for another primary residence but is this the best move?

My ultimate goal would be to continue to buy and rent homes to retire early and be a stay home mom.

Thank you so much for your replies. A bit more
Information. The broker chargers the borrower 3 points for the loan. The borrower has done many flips; but 5 of those flips have been funded by that broker. The loan would be the only lien; however the loan would be made by 3 investors; including myself. According to the broker :" i choose to write the loan for 12 months.  If I write the loan for 6 months, and if it takes alittle longer than 6 months to close a resale, then I might have an expired loan on my books."
Because there is not any rehab necessary I don't believe the loan should be for 12 months.

Loc R. According to the broker, the house does not require many updates. It was built in 2004; and it is being sold as a shortsale straight from the bank. The bank does not allow the new owner to sell the property for 90 days.
Broker said that it is possible that the flipper will only keep the property for 90 days and then sell it and close off the loan.
Is that usual here in California? The flipper would use his own money for updates.

Thank you for the replies.
Loc R., The 65% is LTV at the purchase price. The flipper is buying the property with a 35% cash down payment + closing costs.
I believe the broker only does 12 month interest only loans, but the buyer can pay it off faster.
I agree with Bill. The broker's responsibility is to get the money to fund the loan, but then, his responsibility becomes collecting the money to pay off the investors.

Hello,
I am new to investing and have the opportunity to start investing on a hard money lending transaction for a short sale purchase and flip transaction.

According to the company servicing the loan:
The loan is a 1 year interest only. The note rate will be 11% with an investor a rate of 10%. The buyer is a seasoned property flipper (they have done 5 loans for him over the past 2 years).

The LTV is 65%.

How would you decide if this is a good investment?
What advice do you have for hard money investors?

Thanks!

Thanks Everyone!

I am so glad I found this website. I am very thankful for everyones responses and insight.

I will definetly take a couple months to study, do a lot of research, and of course, network!

Nathan Emmert, I think Hard Money Lending is a great idea. I am going to reasearch Capitalbenifit.com.

Jon Holdman - No, we do not know anybody that can do a private loan. I totally agree with getting a loan with no contigencies... But, the first house was 400K; therefore, I do not qualify for much more. The rental income does not help because the house does not have 30% equity.