All Forum Posts by: Lucas Cookson

 I've done it with one of my rental properties. It was a $43k fixer upper. I put down $20k, and put the rest on a couple credit cards. They were 1 year 0% with a $0 balance transfer fee. I got it paid off within that year. If I didn't, the fee would have jumped to 23%!

When you apply for the credit card, make sure they can either do a deposit directly into your bank account, or they give you checks to write to yourself with no transfer fee. Maxing out the credit card limit is usually a bad idea because it can hurt your credit score, so make sure you're a few thousand below your limit.

"1. Buy with cash (buy it right)."

What do you mean by "buy it right"? 

Thanks for the tip about making sure the bank is ok with getting a cash out refi. I will definitely do that. I also understand what you mean about DTI. I'm taking into consideration all the variables of renting (maintenance, taxes, property sitting empty for a month, repairs due to a bad renter, etc).

A property I'm looking at is about $65k. I plan to buy this property, and then continue to buy more properties once this one is rented, repeating the process over and over.

Would I be better off buying it with cash, and then getting a home equity line of credit (HELOC) to use as down payment for the 2nd house, or should I just put 20% down on the first house and take a regular mortgage for the rest?

The letter states the following:

FULL RECONVEYANCE
WHEREAS, John Smith, is the Trustor, Bank of America, N.A, is the current Beneficiary and ReconTrust Company is the current Trustee under that certain Deed of Trust dated XX/XX/20XX, and recorded on XX/XX/20XX as Instrument or Document No. XXXXXXXXXXX, in book, page, of the Official Records of the County of Los Angeles County, State of California;

WHEREAS, the Trustee does hereby reconvey, without warranty, to the person or persons legally entitled thereto, the estate now held by the Trustee under said Deed of Trust.
Dated 1/17/2013
Trustee: ReconTrust Company
By: Maria Fregin, Assistant Vice President

State of Arizona, County of Maricopa

.....and then below all that, it is notarized. He also received a copy of the recording filed at the recorder's office in Los Angeles, CA. Oh, and my colleague's name is in the spot where it says "John Smith" in case you didn't figure that out. The name was edited to protect the innocent. =P

So, what exactly does this mean? Are they saying that he is now the owner of the house, or did BofA reconvey it to ReconTrust? I'm confused because he hasn't finished paying off his mortgage.

I'm in California buying my first piece of real estate. It's a foreclosure. I just went through signing 20 pages of text that said "PROPERTY SOLD AS IS" and "NO RECOURSE" over and over and over....
Don't expect the bank to pay for any types of repairs, upgrades, etc.

So, make sure you get a good home inspector! 8)

I don't know this for sure, but I've been told that at almost every auction, what is owed on the house exceeds the value of the house... so the properties go right back to the bank.

Thanks for yelling at us YSP.

DID YOU KNOW THAT ANYONE WHO TYPES IN ALL CAPS AND DOESNT USE PUNCTUATION AND USES RUN-ON SENTENCES CAN ACCURATELY PREDICT A REAL ESTATE MARKET ITS A PROVEN FACT.

Grandwally, I completely agree. Unions are taking away our competitive advantage. Also, everyone spends themselves into the ground, and still learns nothing about saving... including my family members.

My strategy is to continue making lowball offers... oh, and buy a gun before the govt outlaws them.

BoA is Bank of America. They offer loans for up to 95% of the appraised value of a property.... thus you only need to put 5% down. It's call the "No Fee Mortgage Plus." I believe it's only for owner occupied houses.

I should clarify that I'm not actually offering 95% of the appraised value of the house. I'm offering 85% of the appraised value of a foreclosure. The appraisal was low for comps in the area. If it had come in close to comps, I would be offering more like 70%.

Whatever my offer is, (say $400k) I'll put down 5% ($20k) and finance 95% ($380k).

I am going to look into one of those spiffy new streamlined 203k loans, but from what another poster said, the rates are a bit higher, and there are other fees associated with the loan that might make it more undesirable than say.... one of those 95% LTV loans from BoA.

I've never had a hard money loan before, but I see people on this forum talk about them all the time.

A missing stove, check, missing fridge, check, missing dishwasher, microwave, washer, dryer, light bulbs, and walls check. Now that I think about it, I never did see a water heater. :goofy:

Are you sure the rate is 1% higher or was that just because of the lender that your client went with?

How much were the other charges for reinspection, draw services, and repair reserves?

Can anyone see any pitfalls regarding doing this type of loan with a foreclosure (REO)?