All Forum Posts by: Steven Barr

Quote from @Dave Skow:

@Steven Barr- thanks - the prepaids  are  likely  1-2K ......even if the prepaids were low  - the  costs  dont  seem out of line for a 7.5%  rate 

Did not realize the prepaids would be that much. Thanks!

Quote from @Kass Farran:

Hey @Steven Barr-

I'm current in the process of an almost identical transaction. 75k loan amount on a multiunit investment and my costs are right around what you got. For context I got a 5.5%. loan amount, non primary homes, rates, your credit all affect what your costs will be. On a loan of that size you don't get much wiggle room but if you care to share more details I'm sure we can figure out if what you were offered was reasonable.

@Kass FarranInterest rate was 7.5% on this and my credit score is 760. It is a FNMA backed loan on a non primary and was doc loan where my income was used (my income is significant though and don’t believe that would have affected anything negatively?)

Thanks for any insight!

Quote from @Dave Skow:

@Steven Barr  - thanks -  1) subtract the  prepaid interest / taxes and interest from the total as these are not  " closing costs "  - these items are  being collected to  set up your impound account  and to pay for the  interest  for the  days  between closing and the end of the month ..  2) the remaining  amount  do  sound  normal for a  rental  purchase loan at  a 75%  ltv   3) it would be helpful to make mention of the interest  rate  you are  getting and also  what your credit score is  and  also  if the property  is a  single unit or  MF property  ( all these  things affect scores )

I have to imagine the prepaid internet/taxes are relatively insignificant when compared to the total amount right? It’s not like I’m knocking $3,000 off my closing costs
Interst rate was 7.5% and it’s a single family. Credit score is 760

Hi BP - I am buying an investment property for $90,000 with 25% down. All of my costs are below. The closing costs seem VERY high. Is this a reasonable amount to assume paying?

Purchase price: 90,000

Borrower closing costs (including prepaid and intial escrow payments): 5,728.85

Discount Points: 675

Loan amount: 67,500

Other credits (borrower paid fees, earnest money, employer assisted housing, lease purchase fund, lot equity, relocation funds, sweat equity trade equity, other): 1,000

Total due from borrower: 96,403.85

Less other credits; 1,000

cash due: 27, 903.85

Looks like closing costs are $5,403.85 on a $67,500 loan. That's 8% fee! Am i misunderstanding something?

Quote from @Eliott Elias:

What was the quote? I see this costing 10k 

@Eliott Elias  Quote was $12,900

this is clearly a contractor grab… trying to refloor and repaint entire house. I could get this done for half that price anyway!

Was able to find a handyman to turn the property for $1,200 - much more reasonable 

I received an absurdly high quote to turn my rental, and wanted to get everyone’s opinion on the cost range something like this falls in:

-Needs some LVP put down where some of the boards are coming up (probably 1 room worth of materials)

-Needs touch up paint in 4 rooms (average bedroom size)

-paint 2 of the kitchen cabinets 

-clean bathtub (as well as general house clean)

-fix minor nail holes in wall

Are you allowed to fire property management mid-lease?

Or does this have financial repercussions given that they placed the tenant and you signed their contract?

Quote from @Chris Seveney:

@Steven Barr

Depends on how long your business has been around and how profitable it is

If it’s a new business (under 2 years old) - no

So what I’m hearing is that it IS possible and the bank will allow it, pending your business operations strength and longevity 

Would it be possible to get a business line of credit from a bank for, say $200,000, and use this line of credit to purchase and rehab a single family home?

Thanks BP!

From my understanding, there are banks that will provide "in-house mortgages" that will offer rehab loans. These loans will roll the costs of the rehab into the loan, allowing you to cover the entire cost of the rehab through the loan, with a down payment based on the full amount. 

**I am not referring to hard money, as I know they offer this type of financing as well

Also, not sure if this matters for reference, but I am based out of Atlanta

Thanks BP!