All Forum Posts by: Brian Sealey

If you ever decide to expand definitely consider Tallahassee. We are home to FSU, FAMU and TCC.  For example I recently brokered a deal for a client that purchased a townhome for $60k which rents for $1550/month.  In addition I'm currently developing a duplex near the same university that is scheduled to bring in a GPI of $4,200.

On the CAP rate discussion: Personally I like to look at the Cash-on-Cash return. If I place x in to purchasing a property what rate of return will I get on my cash? Property B may cost less but if I can buy Property A with zero down and $10,000 in repair and make 12% I'm happy. To me it depends on your goal. I want long time cash flow so I can relax one day ????

@Clay Manship 

Correct, you can't have two Owner Occupied loans at the same time. Assuming you buy it right you should have at least 20% equity in your property after renovations. At the point, refinance into a conventional investment classified loan. At the point you will move out of that quad (lease the newly vacant unit) and into your new FHA financed Owner Occupied purchased dwelling. Unless it's over 4 units you don't have to venture over to the commercial department.

Note that your underwriter will want to see that the rent (from your original purchase) is on your tax return (so you will have to wait a year) before acknowledging it against your DTI. If you did this before than you will have to qualify for your new purchase with all the debt on top.

Also note that there are 203k options for investors available.

Good afternoon,

I was curious as to why you would want to refinance into a commercial loan.  Why not a conventional one allowing you to hold a fixed rate amortized for 15 or 30yrs?  You'll have the equity right?

I wonder if you could do a "kiddie condo" FHA loan and use the credit and income of your parents or guardians to get your first purchase. This loan will go up to a quad. Here in Tallahassee we have a lot of students (3 major colleges) so we utilize this a lot for parents buying for their growing students moving off campus. Typically parents here have gotten 3 to 4 room townhouses where they rented rooms to roommates so I haven't done it on duplex or quads. Worth checkin out

Good advice from everyone. Does anyone have a model or system that they use on calls? Sorta like playing pool, if the goal is to get the eight ball in the corner pocket (a deal) I'm sure you have to have a method. Thanks

Hey @Rick Harmon ,

To further go into the Lis Pendens HOA Lien scenario that I brought in discussion I searched another attorney (in addition to mine) for more clarification so that I can share (I moved it to another forum since it didn't address the original question. @Wayne Brooks and others brought up some great discussion points there as well ) By the way I really love these forums:

According to Florida Statute §48.23 the Association may not be entitled to bring these separate foreclosure actions. This statute states, "...recording of such lis pendens...constitutes a bar to the enforcement against the property described in the notice of all interest and liens...unrecorded at the time of recording the notice unless the holder of any such unrecorded interest or lien intervenes...within 30 days after the recording of the notice."

In U.S. Bank Nat Assn v. Quadmaine Condominium Association, No. 4D12-422, the Court applies the statute to the following facts: The bank recorded a supplemental Lis Pendens in connection with a re foreclosure; following the recording of the supplemental Lis Pendens, the condominium association files its lien and suit to foreclose. Under these facts the Association had to intervene in the bank foreclosure within 30 days of the recording of the Supplememtal Lis Pendens, and failing to do so barred the Association from liening the unit and foreclosing its lien.

The affect on pending mortgage foreclosures is to prevent the Association from initiating a separate law suit for delinquent assessments when it doesn't have a recorded lien at the time the bank's Lis Pendens is filed. If assessmemts are delinquent, if and when the mortgage foreclosure is settled through modification or otherwise, the delinquent assessments will need to be immediately resolved to avoid a second, successive foreclosure action. But, the Association is not be able to interfere in the pending bank foreclosure by threatening to foreclose its own lien quickly, allowing the owner the time to fully defend the mortgage foreclosure and seek a fair resolution of the case.

Perhaps they are different @Wayne Brooks but either way I'll find out I assume. In either case, at least in my situation I have Title Insurance so if he his wrong as you believe it's not an issue; I'll simply send it off for the insurer to take care of. I've worked with this attorney for years though. 

^^^^ duplex not condo

Regarding this Lien discussion speak to an attorney.

I just purchased a commercial condo in which the community Association walked in and served me with a $2,000 bill for a lien that was placed on the property 2 years ago. (bank foreclosed on a Dr. that had the debt, purchased by a second buyer who sold it to me. HOA had a lien on the property for past due balance from doctor)

I sent the lien and HOA demand to my attorney and here is a synopsis of what he said:

The claim of the Lien that was sent to you was recorded after this Lis Pendens was recorded in Official Records. Since the Claim of Lien is recorded after the Lis Pendens, it no longer attaches to the real property described in the Lis Pendens, which is the same real property that you hold title....

So the HOA had a lien but it was invalid