All Forum Posts by: Matt Holmer

@Ronald Perich

I saw you mention Epic Fast Funding. Have you used them before? What type of terms are they offering? I am currently using private money and/or partnerships for the BRRRR strategy and am always interested in finding out more about the different options out there.

i have been listening to the Epic Real Estate and Turnkey Real Estate podcast and keep hearing Epic Fast Funding advertised. Has anyone used them?

Currently I use private money for cash purchases and then refi after renovations are completed. According to the advertising, this company provides loans based on personal credit with no interest for a year. After that what are the terms? If the loan is paid off within a year, where is the profit for them? 

Any information would be appreciated. 

If you really are interested you can get a consultation from a real estate attorney for a relatively small fee.

I do not know the disclosure laws in your area, but where I live, if the property owner has taken reasonable steps to fix the material defense and reasonably believes the problem has been address, then it does not have to be disclosed.

Not exactly an answer to your question, but I provide lease drafting, evictions and post judgment collection services for my landlord clients.  This type of work is not as sophisticated as some of my other practice areas and the hourly rate reflects that.

Despite a having a good lease, evictions on these low rent properties are bound to happen.  Most of my clients do this on their own (landlord friendly state of Iowa) and I handle the collections portion (e.g. past due rent and property damage).

I have one SFR where I am currently doing the management. Every couple months I make an appointment to pick up the rent in personal and do a very quick visual inspection on the property. I also drive by a couple times a month to make sure everything looks good on the outside as well.

Work has really picked up so for property number 2 I am going to try a PM.  What is a reasonable expectation on the number of times they view the property in a year?  According to one of the leases I have read, the tenant is responsible for changing the furnace filters and smoke detector batteries so nobody will be in for that.  

According to one PM agreement I read, they do a move in, move out and one yearly inspection.  Is this the norm? I'd hate to see what kind of damage a bad tenant could do if left unchecked for a year!

Is it unreasonable to expect the PM to visit each property at least a couple times a year?

Thank you for the input.

@La T.

I use State Farm for everything.  Their auto is a little higher (but great coverage and good claims handling) but their homeowners is typically cheaper then what I've seen.  I'm right around $600/year for properties with around $100,000 in coverage and $300,000 in liability.  That is no non owner occupied. Deductible is $1,000 for each.

If your tenant is paying the $10-35/month (depending on size) to run the thing, I'd happily replace it.  Not only does it make the property more comfortable for them, but it protects you in the long term.  

In addition to the sites previously listed, Rent Range provides a pretty decent market report and prediction of what the property will rent for.  It does cost to run a report, so I used it as my last check on a property before I sign on the dotted line.  Is it necessary? I don't know, but I like the extra confirmation

Quick question regarding DTI for a Fannie loan.

As I understand that new rental income (less then 2 years) is calculated as:

Gross rent * 75% - DITI = income added 

What I don't know is whether or not the DITI still counts as a liability.

For example if DITI is 500 and rent is 1000, that nets 250 of income based on the above calculation. Does the $500 still count as a liability or is it completely wiped out?

Hope thatquestion makes sense. Thank you!

Take a look at this recent thread, particularly the comments by Joe Villeneuve

 Click here

To paraphrase what Joe said (in-artfully at best)

In order to do a cash out refi into a conventional loan (i.e. fixed rate, longer term) you have to wait 6-12 months for the "seasoning period". However, once the property rehab is completed, you should be able to immediately take a HELOC at 70% of the ARV. This way your cash is now ready to be used for another property.

Once the seasoning period has elapsed, then you do a cash out refi, pay off the HELOC and lock into a long term conventional loan with a loan interest rate.