All Forum Posts by: Jim Gordon

I just had a client close on a property last week with a 203k streamline loan. You do not have to be a first time buyer but you can not have another FHA loan open. You can just do the "habitabilty" issues with the 203k and do the cosmetic work yourself. You can refi out into a conventional loan before 1 year is up but be sure to document everything that you do to add value and take lots of photos. The rate is about 1% higher than a normal FHA loan and there are some additional charges because of the repair reserves and reinspection and draw services on the loan.

I had some clients close on a home last week. The property started at 399K 2 years ago and we bought it for 165K with a list price of 202K.

The ARV may end up in the 325-350 range.

The lender had to try to get back some of their money as they had a 440K loan on the property. You don't just go from loaning 440 on a home to selling it for 165 it makes you look like an idiot to the feds.

I have a closing that has been delayed over a week. The issue is the chain of lenders that own the property is so conveluted the title company is not sure who to have sign the deed as seller.

Check and see what your purchase contract called for on the transfer of security deposits. If you did not ask for the security deposits in the purchase contract you may be in for a fight.

Not legal advice but you need to make sure everything was spelled out.

Loki the loan is not material to the equation.

Purchase 50,000
Repairs 25,000
--------
Basis 75,000
Sale 145,000
----------
Profit 70,000

By the way the thinking is wrong on the sale. The investor drew profit from the property twice. Once on the cash out and the second on the sale. 70,000 profit is not a short profit and a lot of "investors" orget that they made most of their money on the cash out.

You really should check stuff like this out on Snopes.com That email has been going around for years.

Zillow is good for entertainment value. I am listing a home Friday that Zillow says is woth 208k. We are going on at 194,900 any takers? 14k instant equity according to zillow.

The problem with the bill as I have seen it is that it gives the bankruptcy court unilateral power to change the terms and conditions of the first mortgage.

If the judge determined that the lender was only due 50% of the loan amount and was to be paid at 1% interest for the remainder of the term that the judge decided, lets say 100 years, the lender would have to accept that with no recourse.

atarget that is so nice of you to offer a 7% bonus to your agent. How do I get you to use me to help you buy some properties?

I had a transaction where the property had the deed distributed and one of the people who had a 1/8 interest in the property IRS liens. It took 3 lawyers and a large national bank 60 days to gat a release from the IRS for a partial distribution instead of the net proceeds.
They don't like to give up what they have and it's easier for them to let the time run out than send a legal release.