All Forum Posts by: Kevin Mace

60% of value is normal for hard money

you can refi as soon as you want but 99% of the banks are going to use the LESSER OF the original sales price or appraised value to determine the value they will lend on.

Commercial is not my can of worms but you want to get a few good faith estimates. I understand your concern about paying points but just as an example let's say you have a 700k loan amortized for 30 years at @ 9%. That would carry payments of $5,632. Now let's say you pay a point (at closing - never in any case should you be paying upfront fees) or $7,000 and get a rate of 8%. Monthly payments would be $5,136 - saving you $496 per month. 7k @ $496 per month would take you just over 14 months to recoup the $7k initial investment. Let's say you stayed in the loan for 30 years - you will have saved $178,560 for $7k. As you can see saying you don't want to pay points may not always be in your best interest.

Generally for short term financing (less than 5 years but you can do the numbers) you want lower closing costs and higher interest rates but for long term financing you are willing to pay let's say$7k to save $170k.

Where is bubba when we need him?

Yes Mike it is possible. You want to make sure you are disclosing that info to all of the lenders involved or else you and your mortgage broker are committing fraud. With all the cracking down TO COME in the mortgage industry the last thing you want to be doing is any type of fraud!

Cleveland is in the list some of my lenders send me not to send them properties being as it is in the "rust belt" . The automobile manufacturing business has been hit hard and that has really effected the economy up that way.

And on another note I know my fantasy QB is from Cleveland and he is stinking it up - hopefully he can turn it around vs cincy this week.

I have been a broker for 5 years. A broker has the ability to shop your deal to many different lenders they use. Anywhere you go they are going to charge you to do the loan whether it be in the rate or fees you pay at closing. I would use the broker (or me ;-) and get another quote to compare,

Make sure you get a GFE and you are comparing the same product (fixed term, pre-pay penalty, amort. term. etc.) If you want more info or some tips feel free to message me.

mid june? of 2007? This has been going on for well over a year!

Jeff,

I am a mortgage broker / investor up here in CT. I can help you.

So you think it would be wise for a newbie to try and convince an established upper class individual to get into a new business? In my opinion I would not start here but I was wrong ONCE before ;-). What happens when the doc asks ok how do we go about it and the "newbie" says "I have no idea". This may be a good idea for an established investor who has some experience. If it was me and someone approached me on their first investment deal and asked me to borrow what will probably have to be more than the house is initially worth to include the rehab etc. I wouldn't even have to think before I declined on that offer.

Why not just use conventional financing? Why not just wholesale your first SS deal and use that loot for the next one?