All Forum Posts by: Po Chan

@Greg Kurzner

We are licensed and bonded but have yet get our GC license yet.  GC license is something we are currently working on

Hi all, I am currently finish up my latest renovation project in NW Georgia.  The team I assembled are capable and eager to work.  As we speed towards project completion, I would love to keep the crew working with me in the future, but that is unlikely to happen without having a steady works for them.  Therefore I am forming a renovation company to offer their service.  We are skilled in converting attic into living space, perform major structural repair, and kitchen and bathroom remodeling.  

Just to stay busy we provide 1/2" engineered hardwood floor installation for as low as $4.50, material included.

Send me a pm if you are interested or if you would like to check out our current project in NW Georgia

Thanks for all the great replies.

@Adam Bartling, @Jonathan Taylor

I currently work in Chattanooga, TN area.  For the past few rehabs I have done, I was able to get rents way above what was shown in the appraisal report(even when the appraiser saw the signed lease contract).  Not sure why, but the appraisal reports I got for the past few projects I done sure don't worth the paper they are printed on.  My only guess is that I spent large amount(80%+) on rehab relatively to what I paid for the house.  At the end I have to go with lender that uses BPO to get refinanced.  Each time it costs me extra few months of delay for the paperwork, which means months of idling waiting to exit.

Maybe I am still new to the business but 3 out of 5 projects I have done in the past 4 years I have spend more than 50% of the time waiting on financing; either for buyer's bank or to refinance a BRRRR. This idle time is become a real drag.

I figured if I have to pay more to get things speed up, as long as I am making a profit at the end of each month (my DSCR, excluding management fee, for the past 2 projects are 1.5 and 1.8), it is still a good business.

My biggest concern now is that given the market uncertainty, I am relucent to get into another project not knowing if I can successfully exit right after the rehab is done.  While unlikely, if housing market crash like it did 14 years ago, I will be waiting for a long time to cycle my money out of the project.  The problem back then and possibly sometime soon in the future is that rent in some areas are way above mortgage.  For someone outside of lending industry that is puzzling.  If someone that can give me assurance that I can refinance based on rent, it sure will give me the confidence to jump back in another project.

Does anyone out there know if there is a DSCR loan that has its repayment amount based on cash flow of the property? I am talking about something like ARM loan, but instead of having floating interest rate pegged on some kind of prime rate, the floating amount is based on the cash flow of the rental property (assume the rent can be verified)

If a property generates high enough rent to cover all expenses and some, a loan with repayment amount pegged on rent might yield a higher return for the lender in the long run and still be attractive enough to borrowers given that rent generally increases over time

@ Chris Seveney 
Thanks for pointing it out.

Does anyone know of a marketplace to buy and sell mortgage originated with owner finance?  I am thinking about long term 15+ year mortgages

I recently come across TrustDeedResale.com where they are selling short term mortgage notes with low LTV and relatively high yields - 11% -13%. These investment seems to be a good investments. Assume the worst case where the mortgage are defaulted, the low LTV should still cover the note holder and some (assuming there are terms for late payment and default charges). Can anyone share their experience buy these kind of notes? I would like to know if this is something legit and what to watch out for with notes like this.

I am planning on doing a JV for a fix and hold project and is wonder how did the JV work out?

Thanks for all the replies. It seems obtain a POA would be the way to have this closed

We are buying a property in Tennessee, the targeted closing date is 6/1.  We here refers to my mother and I, where my mother is the main borrower.  She recently traveled to Taiwan and will be in quarantine as is required for all travelers.

Today I learned that the title company requires my mother to be physically present during the closing.  Since she is in Taiwan this means closing will need to be done in the US embassy, according to the title company.  On the US embassy's website it states taht notarization service requires advance appointment, however when I try to schedule an appoint on US embassy's website, there is not a single available time slot.  Given the recent covid 19 outbreak in Taiwan, there is risk where Taiwan will go into lock down by the time we are scheduled to close.  If that happens, it could be very difficulty to complete the transaction in the US embassy, certainty impossible without delay.  It seems that having closing occur at the US embassy may not be a viable option.

My question is:  Is the requirement to have the closing done at the US embassy detected by state or federal regulation or it is some arbitrary decisions make up by the title company or closing attorney?

A quick google search shows that Tennessee does allow online notary signing, this would seems to be a much better option, can this be done?  If yes, what can I do to convince the title company for this to happen?