All Forum Posts by: Shaun Weekes

@Johnson Ejalu 

If you're talking about a six month limit it's delayed financing that you're quoting. Delayed finacing is based off of a cash purchase. But in this case Danny is still needing to wait at least 6 months for new value. Now is he just wants cash out based off of the cash purchase it would be based on the 30K purchase price not he 100K ARV price.

I hope this helps everyone.

Hello Danny,

You can get the cash out based on ARV from a HML and then at the 6 month mark simply do a rate and term refinance to lower your payment. If you don't need the money right away I would just wait until the 6 months is up and do a cash out then.

No loan that is eventually going to be sold to Fannie or Freddie will allow you to cash out on new appraised value before the 6 month mark unfortunately.

I hope this helps and have a good one Sir.

Hello J Scott,

Thank you for the insight.  This is going to be my first one or two deals so I'm open to listening to what investors have to say.  If that is the going rate then I'll have to adjust my expectations and move forward from there. 

Being that I'm in sales I'm a great at taking in all options and seeing what the best one is. 

I'll try and adjust my subject line and thank you again J Scott for the valuable insight.

Hello Don,

I should have put this into the original post.  My team and I have 50K to put into both homes or one of them.  We still need the help to get this completed and that's why I'm asking for 100K at 8%

Again if anyone is interested please contact me asap so that I can show you our contract and my plan for how I'm going to use this cash.

I have two homes ( Pasadena and Rancho Cucamonga ) that I can put under contract this week.  However before I move forward I want to make sure I have all my ducks in a row and the last thing that I need is 100K.

I would be happy to get into detail about how I would use this money if any investors are interested.  Both of these homes will be flips.  My Team consists of an MAI appraiser and a Realtor, so our number are extremely accurate. 

I'm a loan officer with access to a ton of conventional, government products and portfolio products so when we list this property I'll be at all of the open houses ( 2 hours at each location twice a week ) to qualify or cross qualify any potential buyer. 

Our comps are solid and based on comparible sales over the past 3-6 months within less than a mile.  My rehab guy is great and we're ready to go.

Looking forward to hearing from investors and if you have any questions please call, email or post.  Thank you for your time and have a great day. 

luck. 

Hello Lou,

Welcome and good luck with your future real estate transactions.   One tip on here is really listen to what most people say on here as they're a lot of great posters and excellent advice. 

Good Lukc :)

Hello Leigh,

If this property is in Texas I would first look for a lender that can even do this. Conventional and FHA cash out's are difficult to do in texas.

Texas has the law titled Texas equity 50 ( a ) ( 6 ) and if the lender doesn't offer this they can't do a cash out refinance. 

If you can't find a lender that can do this you might have to do a Hard money loan and then do a rate and term refinance.

Before you go that route look at local banks for cash out because HML will cost you a lot.

Kimberly,

If you're moving out of state and your job will be out of state as well the UW in that situation will consider this an Owner Occupied residence.  This will allow you the chance to have the best rate and terms possible.  If you're selling your home and using income from the sale as down payment that is also an easy task.  At least the theory of it :)

If you're keeping your home for rental purposes set it up so that you have a rent lined up before you are in contract on your new home. This will give you more income because if the departing residence has at 30% equity ( conventional ) or 25% equity ( FHA ) you can use that rental income towards your income.

If you keep it as a second home then you would need to qualify for both mortgages. Second homes tend to be for vacation so your home would need to be in vacation area like the beach, lakes, maybe a lot of shopping.  This isn't something set in stone but it's nice to paint a clear picture for an UW because they tend to look at things black and white with no gray area typically. 

I hope this helps :)

Calvin,

As the seller it's going to be hard to swallow this pill.   One thing that your realtor could have done is have his or her loan officer ( Every realtor should have a loan guy or 2 that they work with ) cross qualify the buyer buy looking at the 1003 and grading it to make sure everything looked good. 

Now when I do cross qualifies for my realtors the LO might be using a bank that has a program that I'm not familiar with or that I don't offer.  In tha case I just straight up ask them can you get this done in 30 days and if they say no ( it happends ) but are honest I'll talk to my realtor and just say extend the COE ( close of escrow ) 5 or 7 days.

After you extend for 2nd time at that point I would just have the buyer start paying for daily interest.  If you're saying that the appraisal wasn't even ordered until after the COE that to me is crazy.  What was the broker doing for the first 30 days?  Now if the loan feel out somewhere else or if the house wasn't up to fannie, fha, va, usda or freddies standards it should be addressed in the sales contract.  The LO needs to communicate with the buyers agent and they should relay this to the listing agent so it gets to you.

Sounds like bad luck to me but the appraisal thing is weird to me unless the home had some issues that were being taken care of.

In the future have your realtor's LO do a cross qualify so that expectations are set from the start.

I hope this helps and good luck with all your future deals.