All Forum Posts by: Mike Day

Quote from @Chris Seveney:

@Mike Day

I would notify them we will withdraw our offer at 5pm this evening

Not doing anything will continue to let them fish for a bettter offer. Use your leverage and pull the offer by X. That’s the best way to get them

If they don’t accept so be it

Your agent is not looking for your best interest, they want the commission thus not wanting you to pull it

Yeah thank you, actually I think that's where I'm going to take it.

I've put an offer on a small apartment building that was supposed to expire in three days. The seller has said they need additional time to deal with a lien and are expecting to accept my offer and start escrow any day, however in the meantime they've been collecting other offers. A week ago when I sent my offer in, there was only one other offer, and mine was the best, but now I've been told they are up to seven. How long until they collect one that's better than mine while keeping me on the hook? I'm more than tempted to withdraw my offer but my agent is vehemently against it. Any words of advice?

Have never been quite sure how this works and it's relevant for a current project. Can someone provide a definitive answer as to how lenders count the income from your existing properties when you purchase a new one? Is it 75% of leases, or do they use your last year's taxes? Thanks!

Hi all! I'm looking for a lender to purchase a 3-4 plex in LA. They must:

- Accept at least 75% of the income from the subject property, preferably 100%, & understand how to work with this type of income.
- Have reasonable rates.
- Understand how to work with investors who are self employed and using income from rentals to qualify.

Thanks for any leads! Thus far have had disappointing experiences with PNC (didn't understand how to estimate the income from the subject property--we went around and around in circles) and BOA (nice, but will only take 50% of that income).

Duplexes with detached third units cause problems due to an obscure rule. Your best bet will probably be to start calling local banks that do their loans in house and do not use Fannie Mae, aka portfolio lenders. It also might be eligible for FHA, though I'm not sure off the top of my head.

Hi all. I'm a serial BRR-er and have recently hit a wall acquiring more properties because each additional one increases DTI above the level banks will accept--even though the properties cashflow. So it appears that the next step will be to find a commercial lender who will lend in the name of an LLC and get these properties off my personal credit.

My question here is the following: if you own a property financed in the name of an LLC, how do banks look at the income from that property? Do they want you to show two years of tax returns with income coming from the LLC or something similar before counting it? The point is to make the income from rentals business income so that the banks stop counting the debt against me.

Ideas?

I'm also interested in hearing about people's experiences getting credit in the name of an LLC.

Quote from @John Warren:

@Mike Day the second any lender hears about a moisture or mold issue, they will bail. I have no idea how this came up, but those are the facts. 

I would be curious to know how hard the repairs are though. A lot of times with older basements, you can run a dehumidifier, clean everything with the stuff they sell at HD, and then kilz primer everything to solve the issue. The problem of course, is that you have to be licensed to do this, but getting your GC license is not very hard. 

That's a great idea John. A dehumidifier and coat of primer is all that it needs really. And the reality is it will be back in 6 months, but oh well.

Quote from @John Clark:

Quote from @Mike Day:

There's a little mold on the walls and a little water in the basement when it rains, but nothing that isn't found in 90% of homes in the area. Has anybody encountered this? Is this even legal? Interested in feedback.

 My sympathies are with the lender on this one, as your attitude about "a little mold" has no basis. "Ninety percent of homes" -- in any area -- do NOT have mold, and there's no such thing as "a little" mold. Mold problems get worse exponentially faster until they are cured. If your "damp" basement has progressed to mold then you have a real problem, and no sane bank will touch it.

Interesting John, your comment tells me you haven't been in a basement on the east side of Indianapolis before. People buy these places and banks finance them all the time. I've done it many times myself and this situation is exceptional.

My lender heard from the appraiser that there was moisture in the basement of a couple places I am trying to refi, and all hell broke loose. They are seemingly not aware that all homes of this age in the area have some dampness, or are possibly just fishing for a way to avoid following through on the loan. I'll go ahead and name the lender: Regions Bank. They delayed closing to complete a special inspection and are now requiring me to complete repairs totaling thousands of dollars to close. There's a little mold on the walls and a little water in the basement when it rains, but nothing that isn't found in 90% of homes in the area. Has anybody encountered this? Is this even legal? Interested in feedback.

It's interesting to think about what's good and what isn't, but no matter what any of us say, short term rentals are probably here to stay. I'm not sure I would consider it a moral issue. Personally I'd probably advocate government regulations against STRs in extremely tight rental markets. But that's just me.