All Forum Posts by: Herndon Davis

What's your mid FICO score? 
What's the amount you're looking to get financed? 
What's the vacancy rate?
What's your projected NOI?

Just PM'd you.  I'm from Mobile originally. Would love to chat with you.

The Estate for obvious reasons would like to get the maximum market value for the asset they're disposing of. Don't' get this confused with an estate sale at the home where all the worldly possessions of the deceased or being sold at a discount.  Typically a realtor will be representing the estate so the sale will go on as usual.  

The bigger question is who has been using the house all these years? Has it been rented out, family used it or abandoned.  My bet is that you won't be dealing with impatient son or daughter or grandkids hoping for a quick sale to get rid of the property. If that was the case they would have sold it immediately after the previous owner died.

 Just sent!

Investor loans rates are always  higher than owner occupied homes because of the risk. There are two types of investor loans,the highly restrictive Conventional Mortgage (Fannie Mae/Freddie Mac) and the much less restrictive and Investor Friendly Non-QM (Non-Qualified Mortgage).

Conventional rates may start off from the 5s while Non-QM rates may start in the mid 5's to mid 6's but can go much higher if your credit is below 700. 

Pay a local title company to do a title research
Pride is why they would allow it to go into foreclosure versus selling it
Maybe they genuinely don't know that they could sell it and walk way with some change in their pocket. Maybe they are trapped not realizing they have options.

Contracts stipulating return on investment, distribution and liquidation.  

I would suggest following these steps:

1-Use Bigger Pockets Calculator to run the numbers.

2-Vet several contractors and have them give you quotes on things that need to be done to get it market rent value

3-Ask to review leases. If there aren't any or most are month-to-month, red flag but not necessarily a deal killer.  Your first order of business is to establish uniform application, credit and criminal background check on everyone there. 

4-Request rent payment history for the past 1-2 years. If the current owner doesn't have records to show you, red flag but not necessarily a deal killer. 

5-If there are no washer/dryers in the apartments on onsite, you can create a laundry space where you partner and lease with a company providing this service.  It's an additional source of income.  If you install new washes/dryers in each unit where there are none that builds your case for rent increase.

6. Check with your insurance agent, make sure you buy in an entity or trust.

7. If you're buying $130K cash then great.  The last thing you need is an underlying mortgage with rehab costs rolled into it and supporting a family of 6 on your own.

If you have more questions let me know.  I'll PM to give you an idea on the type financing you could qualify for rehab.

 If you do a Non-QM loan you don't need to have a job, submit pay stubs, tax returns or have personal debt ratio calculated.  I am going to PM to get more details of your scenario

 Just sent you a PM