All Forum Posts by: Account Closed

gotta have money to start just like with everything else. there is no golden ticket. 

even those unlikely to find, rare "no/low money deals" you still need sizable cash reserves. start by reading this: 

https://www.biggerpockets.com/real-estate-investin...

this is just ridiculous. Im never gonna get anything done! worst then face book! 

:)

@Jennifer T.  yeah, practically word for word from my post is what I told them regarding method of appraisal. 

From reading other past forum posts sounds like just like you say, cant do much about it.  

No I dont need the income to qualify for the mortgage, which is mainly why im kinda surprised at this. I have a commercial LOC (CLOC) also with more then enough room on it that I could simply pay cash for the property but Im wanting the nice long 30yr fixed mortgage product to keep my cash free and keep my cash on cash return high. They did a free in house appraisal for my CLOC. I understand that since its a mortgage they arnt keeping the loan in house and so the appraisal is likely a requirement of the secondary market... but geez!

I asked if it will be an in house appraisal, drive by appraisal, or a full appraisal so I can have an idea of my costs. This is a duplex, im putting 20% down, getting a 30yr fixed mortgage.

Here is the answer I received from the bank:

-"As for the appraisal – it does need to be a full appraisal. We ordered it today and we heard back from one appraiser that gave us an estimated price of $835. Right now we are checking to see if we can find something a little lower in price. It is higher because of the rent schedules, etc that need to be done since it is a multi-unit property"-

This is a duplex and from my understanding regardless of the type of financing standard practice is that multi's up to 4 units are valued the same way single family homes are, using comps. Rents/income is only used on 5 units or more as a source when determining valuation which is where the more expensive appraisal process comes in. So I wouldnt think the appraisal should cost much then any other single family or other duplex type property.

i mean..... what should an appraisal cost?

Question: 

With a no pets policy, tenant brings a doctors note stating she medically prescribed to have a service dog to counteract anxiety condition, she moved in without a pet and knew the policy beforehand. 

Other Tenant in the property has a past doctors description of their severe allergic reaction to pets( hence why they moved into a no pets policy building). 

who wins? Can you write in the lease a statement to address tenants trying to get around the no pets policy with doctors notes?

@Jerry Padilla I liked the blog post, couple questions

- conventional, long term, financing for investment properties down to $10k? can you elaborate, that would be the first Ive heard that and can it be fixed rate? How much do the rates differ from $50k+ type conventional loans in your past experience?

from your blog, can you elaborate on this, not sure I understand;

4. Loans for investment properties are not eligible if the transaction includes non-arm’s length and/or at-interest characteristics

- Regarding cash reserves & down payment, can an existing LOC against a different property you own outright be used to show you have sufficient cash reserves and is it ok if you draw from your LOC for down payment funds?

ehh, youd be surprised. more common then you think when your getting into apartments that size. especially with seller financing. You gotta remember for some people that is a steady stream of income so why cut it short by 10 years. I would recommend asking the seller what they are looking for, that is your starting point. I try to play seller financing as a larger benefit to them then it is to me. Show the 10's (or 100's) of thousands of dollars the bank will receive on the financing instead of them.

Especially if the seller is close to retirement, thats where you can really play this card. if they own it outright (likely the case if their offering seller financing) then try ask them what they want the money for? If their retiring their not gonna stick it in the stock market with DOW 18000 if their smart. If they put it in a CD or bond or interest bearing savings account which is the most likely option for someone retiring then their gonna get chicken scratch for a return, likely 2% or less. Under the right circumstances you would be willing to let them finance the note and pay them more then their 2%. They now can get a secured (by the property), safer investment then the stock market (fixed rate), higher return then a bond or cd upwards of 4% or 5%, best yet they can get it for 20 or 30 years depending on what they are looking for, now thats a solid stream of income for them! obviously after a certain amount of time being interest free of course. This would likely net them much more their  asking price while getting more favorable tax treatment. And if you (the buyer) default on the loan to them, they get to keep the fat down payment and the property! 

Remind them, otherwise they are gonna have a tough time with any buyer because banks dont like high vacancy, and they Hate complete vacancy. Tell them even getting it occupied wont help in many cases banks want historical rent rolls to see if rents are increasing or decreasing on the asset. 

Look at it that way and I would say they need you....

If their not looking for that income stream..... well then my argument doesnt work very good :)

I would explore if I were you. if they are willing to do seller finance thats awsome, there are many things you can come up with. 

get a mortgage calculator out and start with looking at how cheap you can get it and still get them possibly close to their asking price with the interest (which would of been paid to a bank) now going to them. 

look at a typical 100k, 30yr fixed 5% loan, the ending amount is over Double the 100k purchase price. That huge extra chunk of money can go to a bank or in the sellers pocket. 

So if the seller were willing to offer... say 5 or so  years without interest on a 30 year note which wont start until you hit 50% occupancy, after you negotiate a purchase price, that could be a huge benefit.

Im not saying your deal has any merit or not, just saying when you see seller financing on a property that actually is a deal..... get creative

Look at us! 

actually we made 2 pages out of this ridiculousness. 

What did you do today honey? ohh just talked about if haunted houses should have a specific disclosure with people on the forums... you know, important stuff

@Account Closed 

I dont know why you dont believe me.... I would rather you call and ask them for the form. But here is a blank copy from one of my previous properties. Actually held up closing until we provided it.