All Forum Posts by: Joseph Meenan

Matthew,

Good to know, I have been with foremost for about 2 years and they have been great,

 I will continue to use them since I found a local Foremost agent and have a few years with them. Will be talking to the new agent Monday. Will find out how many they will insure and if so many years need to be earned before they will insure more.

Joe

yuval,

I have used Agency partners (foremost agent) in North wales . ask for dave or jim. 1-888-390-0818. I just talked to an agent before this post that has an office in the 19134 zip code.

I was speaking to Francisco an andre and I will be using them since they are a few blocks from my house. 2701 e. huntingdon st 267- 318- 7974 Andre S. Adams agency. tell them you just spoke to Joe today about investment property insurance.

What zip codes are you investing in?

Swapna,

That is who I used on my past flips. Their name keeps coming up repeatedly with my day to day dealings. I will probably use them in the future also as they were very easy to work with. Glad to see other investors are using Foremost.

Thanks for your input.

Joe

Hello all,

Having trouble finding a local reputable insurance company that will insure my investment property purchases from day 1 of purchase. I invest in Philadelphia Pennsylvania 19134 zip code area. One of my past purchases had knob and tube electrical but working kitchen and bath. And another did not have an operable kitchen. I had to use out of state companies for these 2 flips. Want to work with local companies as much as possible.

 It is important to get insured from day 1 of purchase, as I have experienced vandalism in 1 of my vacant properties (stole all my copper piping in house and aluminum window siding in my side alley). I had an alarm system installed next day to link up with my computer. Best investment I made for peace of mind. Did not have any theft issues after installation. Glad I had insurance policy even though I did not claim the loss. They (burglers) were nice enough to turn the water off from the main (lol). If they did not do that I would have needed to file a claim.

Thanks,

Joe M.

Joe I.

I will add that information to my financing folder, I appreciate your post.

It looks like my borrowing in the future will be with a hard money lender for my purchases of distressed properties since they close quickly and I don't have to worry about what shape the property is in as long as it makes sense. Now that I have a plan for financing properties now need to find properties in my farming area.

My tip as a beginner to other new investors is to keep your credit score up in the mid 700's or higher, watch your debt ratio's on your credit report for borrowing with banks (especially if you are not holding down a full time job).

I currently have 2 leased vehicles that are on my credit report showing over $50,000.00 owed on them even though it is a 2 year lease. I will be turning them back in January. I am going to buy 2 other used vehicles cash and then the only other revolving debt on my credit report will be my primary residence loan. (approx. $75k).

I only gave this example since my goal is to leave my full time job in 2 years or less (after accumulating a few more rental properties of course). And doing investing full time.

I called a bank to try to refinance my primary residence and gave them both situations of working my full time job and being self employed. When I had them calculate self employment they said I would not qualify even with my wife's job income and my 1 rental property income, due to the fact I was showing on my credit report debt of over $125k (mortgage and 2 car lease balances above).

I hope my road blocks for financing properties help other beginners. Again I am looking at future lending issues that might keep me from leaving my full time job in the future and still being able to qualify for fixed rate mortgages for my hold properties... just trying to get all my ducks in a row for my future goals.

Thanks

Joe M.

Brandon and Hilary,

Thank you for following up on my concerns. I have an appointment Saturday to speak with a wholesaling company that also has a sister company that lends hard money. Since I don't really want to go the way of hard money, maybe they will give me a better rate up front and also get on their e mail lists for properties in my area. Maybe hard money lending on the short term to flip might not be so bad... we will see... I need to get educated on all loan products and how they work with flips and buy and holds. This appointment will provide me with another source to find properties in my area and add to my contact list.

Thank you to everyone for your input. Your information was helpful and I will follow up with your options you have provided.

Hilary,

I would appreciate any contacts you might have.

Thanks,

Joe

Albert Bui

your response was very helpful in understanding the terminology and time frames for such lending. Do you have any helpful information as to conventional type loans, (looking to stay away from hard money lending) when I sign an agreement of sale for an all cash offer, and get a mortgage prior to settlement for investment properties to hold or flip. What type of loans would help us as investors with this issue? Some of the properties that I find do not have working bath or kitchen or both. Is hard money lenders my only option? I purchase homes in Philadelphia Pa.

Thanks,

Joe

Andrew & Doug, I have not heard of that lending option before, but I am interested in more information on that lending option. Thanks again guys.

 I have a low 800 credit score and can't find local bank or mortgage company to give me a loan prior to settlement on a cash deal. I can't keep tying my own capital up as I need my capital for the rehab work and holding costs. I am a small fish buying 1 property at a time wishing to buy multiple properties. I hope my current issue helps others getting in to the business find answers also.

Andrew S., lenders I talk to in the example you gave will only lend 70% of the original purchase price on investment properties. Should the 70% I can borrow be 70k not 100k?

I am a new investor, I flipped 2 properties with my own money over the last year and a half. My 3rd purchase was my first buy and hold in October 2013, which I just rented out 4/1/14. The property is free and clear of any mortgages and loans. My problem is that I cannot access the equity in that home to move forward and buy other properties until it has been owned for a year (seasoning period). I talked to a rep from Quickenloans.com and they have a 6 month seasoning period. Does anyone have any feedback on this company or can you recommend a company that has less than 6 month seasoning period or no seasoning period at all. I live and invest in Philadelphia Pa. in zip codes 19134, 19125, 19137.

My second issue is getting a mortgage prior to settlement when I put in an all cash offer. If I don't get a mortgage prior to settlement, I must wait the seasoning time to access my cash. If property does not have a working kitchen and bathroom they will not mortgage it.

Thanks,

Joe