All Forum Posts by: Paul Haviland

You have a number of questions there. Advantage to refinancing now is that you know where the rates are currently and can make sure the numbers still work. Note that often in a rate/term refinance (no cash-out), they will likely want to see at least 80% LTV. Based on your figures, it seems you will have that or be very close. When you eliminate PMI, that will save you money every month, and would likely quickly offset the costs of the refi (fees, appraisal, etc. ). Once you have eliminated PMI, you will be ahead even if you don't purchase again for a while. When you do plan to purchase, you will have your FHA loan available again, and could always look to a HELOC on your current property if you wanted a different loan product. Note that HELOC terms on owner-occupied properties is much more beneficial than non-OO (from my experience). Good luck and congrats on the 1st purchase and good progress towards the second.

As Russell Brazil pointed out, it is going to be unique to your broker. With mine, I can buy without a fee, but when I sell it would have to go through the Broker. We are allowed one personal "discounted" transaction per year. Hope that helps.

Consult the CPA, but I believe the rule is something about the trip being specifically for REI, and a reasonably large amount of the trip/time in LA would need to have documentation backing up the properties you looked at, when, etc. But, if you flew to LA, looked at 2 buildings the first morning then spent a week at Disney Land you aren't able to write it off.

The key is to get educated and take action. Kudos on doing both by joining and posting here. Welcome to BP!

Hope the closing went well, and your well on your way to having REI help you reach your financial goals. Cheers and Happy New Year!

The key is to get educated and take action. Kudos on doing both by joining and posting here. Welcome to BP!

This will be in the contract. In a WI listing contract, they are standardly due the same proportion as the commission (6%, 5%, etc. )

Hey Scott - congratulations on the progress and momentum. I read one of Warren Buffets biographies,and the central metaphorical theme was that of a snowball rolling down hill. It (Warren) continually gathered more snow (capital), making it move faster and able to attract/retain more and more snow. The start is hard, but once we get moving in a direction, we can make much more progress with less risk than previously possible. Just the other day, I was meeting with my banker reviewing the most recent deal I put under contract, and I was asking him if the pace of my growth was something I should be concerned with. After a pensive and silent pause that only a 70 year old banker can muster he asked "how much do you really need?" Previously it was always "more", I was going as fast as I could acquiring good properties and quality financing. However, that question made me again assess my business from the 30,000 foot view and realize that I have achieved my initial goal that I set out to achieve. Keep your head down, work hard to form good habits, and before you know it you'll be rolling downhill. Cheers and Happy New Year! Paul

I think, like most answers on here, it depends. Your personal situation, the amount of equity you have, how negative is it, do you have the means to support the negative cash flow (seems like it because it has been happening for 7 years), how much debt do you pay off each month, do you have the diligence to invest the proceeds, or is it possible they could end up in your checking account. all these factors, and more, should be considered. The more you share, the better the answers.

Quick thoughts on standard residential sales... Meet and talk to as many people as possible. Be genuinely interested in their life and listen for "change" in their life or their friends/family. Moving usually is driven off of a change (new baby, divorce, new job, etc. ). Then stay in "flow" with those people and do your best to add value without hounding them.