All Forum Posts by: Ryan Newport

Hey Kyle, I closed on a house hack earlier this year. I’d be happy to share all my experience and personal opinion with you. I’ll send you a message to get in touch! 

@Kyle Maglio I sent you a message. Happy to connect! 

@Sam Slivinski I closed on a  house hack a couple months ago here in Meriden. There are plenty of options and opportunities out there. Having an agent to act as quickly as the market is moving is key though. Message me and we can exchange numbers and I'm happy to share more about my experience and some suggestions. 

FHA loan product.

If my appraisal came in at say, 250k, but seller insisted on wanting 275, can I seller finance an additional 25k.

Does FHA allow this? I know they specifically do not allow seller to finance a down payment, but I am providing my own down payment, closing costs, and reserves. Thing is, they won't fund a larger loan with the low appraisal.

If FHA doesn't allow this, can this type of arrangement be made with seller on the side with seller in form of a promissory note or something else?

Not looking for tips on switching to a conventional loan, getting another appraisal, appealing appraisal, or negotiating purchase price. Already trying all these tactics as well.

Thanks!

Hi @Cara Lonsdale, thanks for your insight. My only concern is that between the research I've done and the large amount of feedback and comments I've gotten from posts I've made in other forums/groups, the consensus has been that getting the appraisal changed by appealing or challenging it is less likely than hitting the lotto. I have spoken to dozens of individuals who've stated its always been a waste of time in their experience, and not a single person who's had success in doing so. The main reason contributing to appraisers not liking to admit they were wrong or have to put any additional work or effort into getting anything changed. I just don't want to challenge the appraisal, then have it locked which would prevent me from being able to order a second one, and end up wasting time getting no result. 

So my FHA appraisal on the triplex I'm under contract to house hack and purchase just came back $52,000 LOWER than agreed upon offer. My lender, agent, listing agent, and anyone I've shown the appraisal to thinks it's a complete hack job of an appraisal.

My deal, which I’m very excited about because it works so well for me in so many ways, is likely to fall through without an adjusted appraisal or a new one. I don't need an appraisal to come up all 52k, but it would need to come up to a reasonable actual fair value for me and seller to strike a deal, otherwise the logical step would be to relist and grab a conventional offer for tens of thousands more. 

My options are two either:
1. Appeal the appraisal, which from what I've gathered is less likely to be successful than winning the lottery, or
2. Very quickly cancel the entire loan before the FHA appraisal gets logged into the system and start a whole new loan over and order a new appraisal.

-- I'm looking for suggestions and advice mostly on option TWO. Does anyone have experience getting this scenario fixed and sorted out in a timely manner. 

Disclaimer: Im aware seller COULD drop asking price or that I COULD bring a ton of extra cash to the table. Neither of these options is a solution for this deal.

So say my friend from out of state wants to use his cash to invest in a property in my state. He wants me to find the deal and then manage the project. He’ll finance the project, let’s say 25% down with a conventional loan, and then we split the ownership. For this example let’s just say I get 10% ownership of all equity, cash flow, etc, and he gets 90%. 

Legally speaking, what type of structuring should be in place? Is an LLC beneficial/necessary? For him to borrow and fund the investment and for me to manage it. What things should I make sure of when bringing this together? Will the bank require anything of me since I'd have ownership interest?

Hoping to open up the discussion and get answers to some of the questions im probably not even asking yet. 

TIA! 

I'm actually speaking with Justin this week. We messaged yesterday, and from what multiple people have told me now, I'm feeling hopeful he'll come in with the winning quote.

 Some of the other quotes I've seen were literally $3000- $7100. 

Recommendations for a REASONABLE insurance quote on a 3-family in Meriden? The first handful of quotes that have come my way are honestly absurd. 

@Cody Neumann I have but it seems you only get 5 free runs at it before it asks you to start paying a monthly fee.