All Forum Posts by: Steven W.

@Steven W. find a new lender. You can get up to 10 loans via conventional financing. There are different criteria for the 5-10 but I have seen a couple of different places that offer those loans. I don't have someone that I would recommend for that. Certainly if you go with a commercial loan from a bank you can get cash as well. Some do require no more than 60% loan to value. Again it's a shopping experience.

Use a mortgage broker who has access to numerous products.

@Sharad M.

In case anyone is still following this slightly old thread:

At this point, the house in Denver is worth around 200K and is now renting for $1700. We have about 77.5K left on the mortgage. I'd love to open a HELOC on this to invest the money elsewhere, but in talking with local Denver banks, the best that I could do would be to get an unsecured line of credit of up to 50K at 8%. Not very appealing.

The problem is my wife (that's my usual line, but in this case, there's some truth to it :-) ). She makes way more money than I do, but she's been working as an independent contractor (web/app designer here in SF) since January, which means that our debt/income ratio is lousy, because no one wants to count this income. Perhaps some options might open up after we do our 2015 taxes, but even then, it's not two years work of income.

Sure, we could see the place, but we'd end up having to buy solely in cash with the proceeds.

Any thoughts of what I might do at this point?

Steven

0 Votes

Hi All,

I am looking for a new PM company in Birmingham, and wanted to see if anyone had any recommendations. I own two properties there, and have been dissatisfied with the level of communication and follow-through from my current PM. I know that dissatisfaction with PM companies is as old as time itself, but I have been happy with the other PMs that I work with across 5 other cities.

Any recommendations would be greatly appreciated!

Steven

0 Votes

Originally posted by @Jay Thoms:

@James Haffner

Counting on appreciation is speculating.

Examine the numbers thoroughly to determine cash flow with BiggerPockets calculators.

Not only would I rule out appreciation as a factor but I would never buy a property that didn't have instant equity. I specifically target properties that are less than market value. Also cash flow is important.

Have you ever considered investing in Ohio? It's a great market for investing.

I personally like south Dayton and Northern Cincinnati.

Jay,

I think that this advice is right on. I haven't looked into Dayton and Cincinnati, but I think that it's wise, especially when starting out, to go for some solid investments that provide cash flow from the beginning--this definitely whets one's appetite for subsequent investments!

Best of luck, James.

Steven

0 Votes

Originally posted by @Charles Terrizzi:

I am about to buy a home from an investor in Jacksonville. I was buying with cash.

It's a newer home and I am confident of the build quality, as I am an hvac contractor and have built homes by hand before. I have also worked in new construction for 15 years, so a building inspection is not necessary.

I have never bought a home before (built my own on land we bought from family) what risks do I run here? who should I include in the process? I have a friend who is new to real estate, should I use him and pay commission?

The Title search company protects against liens, but what other problems could a newbie get into?

Charles,

One suggestion would be to call the local police station and ask about the neighborhood. And/or call a property management company in Jax and ask them about their experience with the neighborhood--how well properties rent, quality of tenants, etc.

I'd be a bit cautious about buying my first property in a C- neighborhood, only because the chance for big headaches could be higher, which might put you off RE all together.

Hope that this helps and good luck!

Steven

2 Votes

Originally posted by @Albert Bui:

Overlays are the banks extra layers and restrictions they add on so no overlays means they not only sell direct to fannie but they dont handicap fannie/freddie's guidelines.

Overlays reduces their risk exposure plus overlays is also liquidity because some other buyers of certain quality of fannie/freddie sellable debt like to buy it as well. This means if you dont sell direct to fnma you sell to chase/wells/bofA/citi or others who then sell to fannie. The quality fnma/fhlmc grade debt is wanted by these intemediary banks because they have lower chance of default so these banks want to retain the servicing rights and then sell it to fannie freddie later. No one wants to service low quality debt and they will pay a premium for these types of files.

I can lock a fannie direct 30 year fixed or chase 30 year fixed fannie loan, Chase fannie requires lots of restrictions and gives huge price incentives for high quality borrowers. So often times If I have a price sensitive borrower I'll lock Chase 30 year fannie if they qualify... Make sense?

Thanks Albert, I appreciate the explanation. It certainly does make more sense to me now, but I wouldn't wanted to be tested on it!

Steven

0 Votes

Originally posted by @Mark Creason:

Where are you finding these companies? Are the properties in California, and if so, why are you talking to a Colorado company about this deal. You should be looking for a local commercial lender to refinance your SFR properties. I have a program in Dallas that would refi million dollar portfolios of investor owned 1-4 unit properties, but is only available in the DFW market. For this type of transaction, I would recommend keeping it local.

Mark

Thanks for responding Mark. These are two SFR properties in Denver. I'm looking at a commercial lender to refinance a property that I have in Florida, but I'm new to the world of commercial loans and 5 year balloon payments. I'm unclear on what happens after 5 years--in other words, what are the chances that the bank calls in the remainder of the loan vs. offering to refinance it for me (making the assumption here of course that I'm current on all of my loan payments)?

I'd hate to get stuck in a situation where I have to sell properties at the spur of the moment to pay back a 125k loan.

Steven

0 Votes

Thanks Jared for this point about the delayed financing rules--It's just another avenue that I'll be looking to pursue on a house that I purchased earlier in 2015.

Best,
Steven

Originally posted by @Jared Rine:

@John D. Yes, usually that's the way that it's done, through Fannie Mae Delayed Financing rules but there are guidelines you must meet...OR you need to find a portfolio lender who will do 5-10, up to 20, unlimited properties, etc., depending on how many you want to do.

The other way might be to find a local lender or commercial lender who will take the portfolio you do have and bundle those into 1 loan so you can then go buy using conventional programs. This also might be an option, depending on investment strategy.

Just my .02

1 Vote

Originally posted by @Albert Bui:

HI Steven,

You won't have any problem refinancing as rate/term (regular) refi on your 8 financed properties however once you try to get cash out you'll have to get creative since fannie mae will not allow a cash out 5-10.

There are plenty of portfolio lenders in CA who will fund unlimited financed properties or cash out's up to 65-70%.

All you need is a fannie mae bank with little to no overlays so they can sell direct to FNMA and of course the knowledge to put together your file.

On the cash out end a suggestion is Luther Burbank Savings they are in CA, WA, and other states they will finance 5/1 ARMS currently at 4-4.25% for purch/rate/term refi and around 5.00-5.25% for cash out refi to 60-65%LTV.

Hi Albert,

I realized that I stopped following this thread and never thanked you for your thoughtful response. I will be checking out Luther Burbank Savings after the new year.

Could you explain the "fannie mae bank with little to no overlays"? I'm not sure what that means.

Thanks again,

Steven

0 Votes

Hi everyone. I've got a property in the Charlotte area (Harrisburg) that I will be looking to refinance at some point in early 2016, and to do so, I am trying to get some comps on its value. The RE agent who helped me with the purchase is no longer in the game, and so I thought that I'd reach out to the BP community and see if there's anyone who might be able to help.

Thanks,

steven

0 Votes

Thanks so much @Emily Rose for the tip. I contacted @Dawn Brenengen right away and she's already on the case!

A small goof though--one of the properties is actually in the Charlotte area, in case anyone knows of a RE agent there who can help.

Best,

steven

0 Votes

All Forum Posts by: Steven W.

Steven W. has started 16 posts and replied 78 times.

Post: What would you do on this property?

Post: Property Management Company in Birmingham, AL Recommendation?

Post: Buying a home for appreciation or rental

Post: Buying from an investor in Jacksonville FL

Post: Terrible Service from Mortgage Loan Officers?

Post: Terrible Service from Mortgage Loan Officers?

Post: Terrible Service from Mortgage Loan Officers?

Post: Terrible Service from Mortgage Loan Officers?

Post: Comp for Charlotte property?

Post: Comps for Raleigh Properties