All Forum Posts by: Jim Blackburn

Most investors/banks have a minimum around 60k on investment loans with 15% minimum down payment on the purchase which makes minimum purchase around 70k w/15% down. This is because there are high cost loan tests and when the loan is under that, it fails the test making it the loan unapprovable under TRID regs.

Typically you need to do to hard money investor which you can find here:

https://www.biggerpockets.com/companies/hard-money

Or you can try a 100% Fix Flip Lender who gives you the cost of the acquisition + renovations. Only challenge with these is Beginner investors need 40k of their own capital in reserves to qualify. Also, maximum LTV ratio is 65% of arm (after repair value) so you need to find properties with good equity potential.

Regarding titling in LLC --- Most banks do not allow the loan to close in an LLC, so investors will close in personal name.After closing, the buyer can quit claim deed title to the LLC.

Jim

0 Votes

@Allen C Herring

if you feel they should pay the $3k then your negotiation move is to lower the price by $3k but keep the seller credit---- this allows you to roll the costs into the price and keep 3k more cash IN YOUR HANDS (where you want it).

1 Vote

@James H Webb III

4155.1 4.B.2.b: FHA Requirement for Establishing Owner Occupancy

At least one borrower must occupy the property and sign the security instrument and the mortgage note in order for the property to be considered owner-occupied. FHA security instruments require a borrower to establish bona fide occupancy
in a home as the borrower’s principal residence within 60 days of signing the security instrument, with continued occupancy for at least one year. (pg. 5 of 13)

https://www.hud.gov/sites/documents/4155-1_4_SECB.PDF

It''s easy to get a tenant to vacate..... tenants love cash! :)

0 Votes

@Austin Salgado - sure, lots of Veterans buy a home a with a VA loan to live in the property, renovate it, enjoy it's appreciation over 6 months or so, grow tired of it the area or find a better home that they like, sell, and buy new by reinvesting the appreciation. In some cases, if the Vet has an extenuating circumstance like moving 100 miles away to another state , he can keep the VA loan on departing residence, and use his remainder eligibility on the next purchase. The key is obtaining a copy of the Certificate of Eligibility from the VA at the link below.. Then calling a lender to find out max purchase power and obtaining a preapproval letter to begin meeting with realtors so you can make an offer and close quickly (since half the work is done).

https://www.benefits.va.gov/homeloans/purchaseco_certificate.asp

0 Votes

All Forum Posts by: Jim Blackburn

Jim Blackburn has started 26 posts and replied 264 times.

Post: Multifamily is the way to go change my mind

Post: How to Scale after FHA house hack?

Post: How can I buy property for $10,000 down?

Post: Realtor told me to find a "junior realtor" should I?

Post: How can you do a seller financing deal of the owner has a realtor

Post: Refinance from 15 to 30 year

Post: Flint, MI Small Multi-Family Help

Post: Questionable deal on table with multiple offers.

Post: Multi family investment already has tenants. Need help!

Post: Is anyone here from So. California and well versed in V/A Loans?