All Forum Posts by: Patrick Roberts

 Have you had a lender run the calculation on the COE yet? The math isnt quite as straightforward as it sounds. 

If you have been told by a lender that you need to pay off the existing VA loan, then you're probably not going to be able to refi the existing loan without putting some cash into it to push down the LTV. Also, there are some pretty tight rules around experience and reserves requirements when it comes to VA multifamily purchases. Just FYI.

Whether or not you can use another VA loan will depend on the remaining entitlement on your COE, as well as a few other aspects. Will the new property be a primary or an investment property?

Lawyer time. Is there not an operating agreement in place already? If not, good chance that youre effed. Was there a promissory note and mortgage/deed of trust or security agreement from the closing that indicates that your contribution was a loan secured by a lien a not a contribution of capital? How are your funds documented on the settlement statement? So many variables here. 

You need to talk to an attorney asap. Id take action now to retain all emails, texts, phone call records, document all conversations, etc.

I agree, the AI generated comments and posts are out of control

 Death by a thousand cuts, one mortgage payment at a time.

Sunk cost fallacy at work. Cut your losses fast and live on to fight another day. 

This is the biggest reason I'm seeing for deals falling apart in underwriting or getting declined at application. Borrorwers either arent qualified and fib about that a little bit, or it's straight up fraud/deception. In the past month, I've had:

- a borrower say that they have the cash for the downpayment, only for the sourcing on that downpayment to show that they didnt have it and that they planned to take a credit card advance

- a borrower refuse to provide a copy of a bank statement until after going under contract (without being preapproved), only for it to show the funds in the account were borrowered, at which time the borrower says "this is why I didnt want to have to give you this"

- a borrower claim that they were divorced when they werent actually divorced yet; they were "basically divorced" according to the borrower

- a borrower tell me that there was some "slight confusion" with their previous lender on a payment, when the reality was that they were 60+ delinquent due to having no cash

- a borrower claim they have "about a 700 score" for their FICO, when the reality is sub 600 due to mortgage lates and credit card chargeoffs

Fannie mae publishes a schedule of allowable attorney fees by state for foreclosure services. This will give you a ballpark on the cost of the attorney services only. This does not include all the other stuff that the attorney has to order/do on your behalf. 

When I had similar questions, I found a reputable creditor's rights attorney in the area I operate in and paid for an hour of their time to get the baseline info I needed. That was the simplest solution, but not the cheapest.

I would have financing worked out prior to going under contract on something. Dont want to lose your EMD

I wouldnt draw on the credit cards. I see this quite a bit - draw on the credit cards for the rehab, then CC ulitization crushes your credit score, then you get horrible terms or declined for a refi because of credit. 

If youre wanting to run both projects simultaneously, go get property financing for the rehab now. If not, just wait until the first project is completed. Dont get into a situation where you no have no liquidity - when youre out of cash, youre out of business.