All Forum Posts by: Patrick Britton

How are people buying one property every year and getting new loans?   That's super easy.    We buy cheap houses.

Consider this, lenders would love to lend you money but if even they say that you're not in a financial position to do it, maybe it's advice worth heeding? The market is absolutely insane right now. The only way anybody is going to make money is by selling to the greater fool. This is an incredibly high-risk time for buyers and I really don't think it's brilliant too go to extra trouble to overpay.

You could shop around lenders and see if there's one who might be able to do an exception with respect to the two years seasoning of rent.

But in my humble opinion, gold is not gold if it's too hot to touch.

@Hector Salas is your real estate agent and/or loan officer NOT making you aware of that in the beginning?  Considering how large those premiums are, it's beyond reckless to keep you in the dark.  I'd find another agent and loan officer today.  

@Dustin Kube i am sorry to hear about the trouble you're experience, ESPECIALLY considering "it feels like we followed BP's playbook of finding a great deal, having it cash flow exceptionally well, but now are getting hung up on getting a little bit of money out to pay off our investors."  I've been there a few times.  

maybe, just maybe, the BP playbook was wrong?  how about that?  Maybe the books you get here are designed for the lowest common denominator and really don't provide the kind of detail and in-depth knowledge that one REALLY needs in order to make this business work?  Maybe they were applicable in years past and not any more?  Maybe they were always wrong to begin with but too few people complained, leading to the appearance (thanks to survivorship bias) that it works in nearly all cases?  Whatever the reasons, the bottom line is that these books are all outdated and rarely applicable to any market today.  

You know what's amazing about the MAJORITY of books about the BRRR method in particular? NO ONE has yet to appreciate the risks of the post-rehab appraisal. It is easily the MOST important part and it's glossed over at best.

i really hope this works out for you in the end, but i fear that end might be further into the future than preferred :(

@Marc Estepa @Benjamin Seibert those "love" letters border of discriminatory so no agent with a brain will use those in Washington State.  other states are different, but WA is very strict with those things.  

As a former realtor from WA state who represented mostly sellers, here's the other thing that matters to them:  money.  If you really want a property you'll need to overpay for it.  simple as that.  Are there exceptions where letters and waiving this and that work?  sure, but 99% of the time it's all about price.

sorry.  i know this is not what you wanted to hear.  not all problems have solutions that make everyone happy.  

I see some people actually believe the government is going to wipe away $50,000 per person of student loan debt. Yeah, that's never going to happen.

Then there was some genius here who said that because interest rates are low you should buy now. Oh boy. What do you think happens to home prices when interest rates rise? here's a clue, they collapse!

if anyone is buying real estate now simply because interest rates are low, I hope you know a greater fool because that is the person you are going to have to sell to in order to make any money!

This is a decent explanation of the things one should do to get the most out of an appraisal.  in short: CLEAN!!!!

https://www.homelight.com/blog...

I don't care about the cost of the appraisal. You're making an assumption that that is why I am looking for a lender who won't use an old school appraisal. Nothing in my original post should have given anyone that assumption.

Are there any lenders out there that don't require an old school appraisal? I'm not talking about appraisal waivers. I'm talking about a lender that sees no value in a traditional, in-person appraisal and is satisfied with either a couple of CMA's or some kind of AVM or other program?

@Sunny S. yeah i must absolutely agree 100% with @Joe Villeneuve here.  

Perhaps try this, go back to the seller and drop your offer price down to $52,500 and provide the appraisal. The initial, knee jerk reaction will likely be to decline this offer but if you can reiterate the point that all appraisers are taught pretty much the same way (they aren’t but most people don’t know this) and that the next buyer who requires an appraisal is going to arrive at the exact same result. So this seller might as well sell to you and in exchange you can give them an extra $2500 above the appraisal.  something is better than nothing.  

However, a concern that should be looked into is finding a lender who will lend on a $50,000 house. I would double check that your lender can do this and wouldn't be violating some kind of compliance requirement or some other bullspit related to High Cost Mortgages.

Holton-Wise is a pretty big believer in caveat emptor. It's just the way they do business. It's like a snake oil salesman telling the purchaser, “you know I sell snake oil, right? You are the one who let me in so if things go south you have no one but yourself to blame.”

Years ago I had some discussions with one of the owners briefly. I got the impression very quickly that he has no interest in serving people, helping people, contributing to society, or doing anything that is not in his own self-interest. But what are people expecting?  There's a reason cheap things are cheap.  

He might very well be a bottom feeder but that's the business model he has decided to utilize.