All Forum Posts by: Randy Rodenhouse

Replacement Cost (RC) and Actual Cash Value (ACV) are coverage options that differ in how a covered loss settlement will be calculated. RC settles claims with the ability to recoup depreciation, whereas ACV does not. Though ACV may be less expensive than RC due to lower insured values, remember, that settlement is subject to non-recoverable DEPRECIATION. 

For example, I had a roof replaced that was covered by insurance due to weather.  The roof replacement cost was about $11,000.  My deductible was $1500.  The insurance company also reduce the payout by about $6000 due to depreciation of the roof (old roof).  So if ACV policy the you would end up with only $3500 check from insurance company.  But since this was replacement cost coverage then I was able to recoup the $6000 after I repaired the roof.  Big difference. 

I sell properties in other states all the time. If I'm selling a property out of state, I usually just tell the closing attorney ot title co that I need them to send all the docs via email and I sign and Fedex back.  You would typically also send the closing agent your articles of organization and operating agreement.

The short answer is yes.  You can use the remainder of your VA entitlement to purchase your second home. As long as you have the income to pay for both houses and you have to live in it for one year I believe. More info on VA loan limts is shown here https://www.va.gov/housing-assistance/home-loans/loan-limits

If you lend money to someone then you need to get the borrower to give you a mortgage for the amount of the loan which is a security instrument to ensure you get paid back and then a separate note which is a promise to pay and spells out the terms of how the loan is to be paid (i.e. rate, term, amount, etc).  The QCD is not needed since the borrower has due process and you cannot deny the person of such by simply deeding the property back to you in case of default.  

If you want to buy lots/land no money down then you typically have to work with the seller to buy it with owner financing or sub2.  Most lenders (even private or hard money) are going to require some money down especially land.  You said you were brand new and I would not think that buying a lot is the best place to start since the lot does not cash flow until you have a house on the property or you sell it to someone else with owner financing and make the spread.

I have purchased hundreds of notes in 32 states and have never seen the properties. Yes these are mortgage notes but many I will get back as an REO. I think as long as you get it at a low enough basis to buffer any potential issues and buy enough properties then you will be OK. If you just buy one or two then you could be in trouble if that one took you out of the game.

With that being said, why doesn't the buyer (your client) simply hire an inspector to give him some sense of what the condition is and how much is needed to get the property ready for sale?
 

@Julie Smith. I need some clarity on your question. First what state is the property in? If the 1st mortgage is foreclosing then the subordinate liens (with some exceptions like property tax liens, IRS liens, city utilities liens, etc) will be wiped out.

@Daniel Murphy. If she is on title, then you would have her quit claim deed the property to you and pay her the amount that she is due if she has funds due to her (assuming u have the funds to do so). If not, then you could refinance the property to get her the funds due and at the same time remove her name off title.

@Cameron Pronk

Check out my recent post where I discuss what I would do if starting out in real estate and wanted to buy my own home and get rental income. Buy a 2-4 unit Multiunit using Fannie Mae new program of 5% down program which starts this week.

https://www.biggerpockets.com/topics/1154617

This is what I would do if starting out in real estate and wanted to buy my own home and start getting rental income and experience. Buy a 2-4 unit Multiunit using Fannie Mae new program of 5% down program which starts this week.

This marks a departure from the previous multiunit financing requirement of 15-25% down payments for duplexes, triplexes, and four-plexes.

This new option presents a great opportunity for individuals looking to invest in multifamily homes while also enjoying the benefits of homeownership. Prospective owner-landlords can now afford these properties more easily, thanks to the reduced down payment requirement by Fannie Mae.

This is an opportunity to reduce mortgage payments by leveraging rental income.

Things to remember:

1. There are closing costs ~2-4%

2. Must have 6 months of payments in reserve. You just have to show you have the money in your account.

3. Fannie Mae has a maximum loan amount of $1,396,800 for properties with two to four units.