All Forum Posts by: Naveen Kumar

@Andrew Postell has a great post about refinancing before the 6-month seasoning without using the delayed financing exception, aka rate and term refinance.

See #3 here: https://www.biggerpockets.com/forums/48/topics/460...

This is the scenario:

Property purchase price - 60k

Rehab estimate - 40k

ARV - 150k

For the BRRRR strategy to work, the refinance has to be 100k. So my question is, can I get a mortgage of 100k at the time of purchase in this case, and then do a rate and term refinance to pull my money out, even though the purchase price is 60k?

Would love to hear from someone who has experience doing this.

I have a contract on a condominium purchase and the condo docs say something like this:

"Unsatisfied judgments as of the date of this certificate are listed here. As of the date of this

Certificate, the Council of Unit Owners is a party to the following pending lawsuits..."

- Does this prevent me from getting a conventional loan?

Thanks in advance.

@Rashad Luckett - thats a great checklist. Do you have any templates you can share that you use for the note that was recorded at the courthouse?

@Brian Garrett - I looked for the post and couldn't find it in the ocean of posts :) - is it possible you can share the link to the post you talk about?

Appreciate all the help 

Thanks for the real life scenario @Rashad Luckett - do you really have to go this route if you are waiting 11 months to refi? I thought this strategy is more for the cash buyers who cannot refinance before 6 months due to the seasoning requirements?

Are there other benefits you see with your strategy?

Buying the company is definitely a strategy, but it comes with its own set of landmines to look out for - the biggest risk is you can get blindsided by something that happened under the previous ownership. 

Can the new owner be sued for that?

@Neil Sinha - from what I have understood, and experts please correct me if I am wrong, with a rate and term refi, the new lender will order the appraisal. If that comes as 120k, you are eligible for 80% LTV, or the outstanding loan amount, whichever is lower - so 90k in this case.

I would love to hear from someone who has actually done it, or find a conventional lender that would do a rate and term refi. 

Got it - thanks @Harjeet Bhatti  

So to be on the safe side, keep the initial loan around 70% LTV, in case the appraisal comes in lower, or some other unknown.

Thanks for that  @Harjeet Bhatti - so what happens to the amount above the 80% LTV - does that stay as first lienholder, and the new lender becomes second?

I have a quick question on rate and term refinance:

If I buy a 100k property with a private mortgage of 90k, and the property appraises at 100k, will the bank be ok with a rate and term refinance loan for 90k, or will they cap it at 70k (at 70% LTV)?

Thanks for helping out a newbie.

thanks

Kumar

@Dmitriy Fomichenko - is there a lender in the DC, MD, VA area you know of that will give non-recourse loan on the appraised value and not on the cost?