All Forum Posts by: Shaun Weekes

Quote from @Maribel Manibo:

There's a ton of FB groups where people claim to be a lender but turns out they are not individual private lenders or are part of a "network", which is fine. Would like to know how you tell if they are legit, especially the brokers. What steps do you take to check them out? What are red flags? Are there ones to stay away from... etc? Has anyone had any bad/non ideal experiences and what lessons did you learn and what would you have done differently?

Contacting the Broker or Loan Officer and asking for a Realtor Referral is also a great way to confirm that the not only is the Broker real but it also shows that they can close loans. Asking for additional referrals like clients and escrow companies that they have worked with is also a great way to confirm that there isn't any funny business going on.

I hope this helps and have a good one.

Quote from @Thomas Johnson:

I buy in an area where houses generally sell for $20k to about $150k.  It is an older town so most of the lower priced properties are rehab properties.  The problem I am running into is not being able to get loans for these lower priced properties.  I love purchasing them because the rental rates are high enough to get over 30% cash on cash returns.  There is a rental shortage and my properties I do have rent within days of listing them.  I want to grow but am stuck with not being able to get financing.  I am located in central PA and there are a lot of towns like this one.  How are people growing their portfolios in these areas when you cannot get funding?  Am I just not connecting with the right lenders?

Speaking as an investor I also invest in a small town out in the mid-west, and I found a local bank that understands what I'm trying to do and works with me to get it all done. Call all the small banks in your county and speak with someone in their commercial division. They're used to lending on low loan amounts and they want to help with rental shortages etc. This will be the best 30 to 40 phone calls you will make all year!

I hope this helps and have a good one.

Quote from @Ollie Oak:

I closed up a wall and added a kitchen to existing square footage to make a one bedroom rental apartment in a property I own in Long Beach that is zoned for single family. One of the neighbors filed a complaint with the city and I now have a request to get it inspected for an illegal dwelling. Any suggestions on what my options are before I schedule the inspection or the best way to handle this as it's currently being rented? It is too big to be a jr. ADU and can't qualify as an ADU since it's part of the house. Everything is up to code.

If you can walk through the entire home without having to go outside this will help you tremendously since it's zoned as an SFR. Putting a door up will solve the issue if you let the inspect into your home. Having a 2nd kitchen isn't uncommon in CA and if the work was done in a craftsmen like manner and or workmen like manner you should be fine.

I hope this helps and have a good one.

Quote from @Franklin Graves:

My partner and I just closed on the sale of a property we owned and the money is being deposited into our joint llc account. We are in process of buying another home and sellers underwriter is asking for  60 day statement of our joint llc account. Our problem is that the account closed due to inactivity because we didn’t have money in business checking account and we reopened it. Is their any exception like a bank time stamp or letter that can get around the 60 day proof of statements needed for Fannie Mae?

All you need to do is show the final HUD or escrow's closing statement, from the sale of your property, to satisfy the seasoning issue.  Your Loan Officer should know this and should have advised you accordingly.

It's so important to work with Mortgage Brokers or Loan Officers that understand how to get investment type loans done.

Quote from @Zac Vaughan:

How much should you claim in order to qualify for a loan? And what is the income-to-loan ratio? 

There's a lot of moving parts to this question. This is a basic overview of the process.

Do you pay yourself with W2 income, K-1 income, Dividends or via Sch C or a combination of some of the above. After income has been figured out your Mortgage Broker or Loan Officer will need to figure your credit and assets then look at all your monthly debt payments that show up on your credit report like student loans, personal loans, Installment loans and credit cards payment. You credit score will determine which loan product you qualify for and what your interest rate will be. Assets will help with determining the down payment and reserves requirements that the lender might require.

Before you execute your taxes, you're going to want to work with a Mortgage Broker or Loan Officer that knows how to read all schedules to evaluate your overall situation with 100% accuracy. This way you can file taxes with confidence knowing that you'll be approved moving forward.

I hope this helps and have a good one.

Quote from @Christian M.:

Quote from @Shaun Weekes:

Quote from @Christian M.:

Hi everyone,

I am looking for some insight on how to best prepare to keep my current residence as an investment property. I’ll most likely be moving in about 2 years and I’d like to use this as a rental property if possible. It’s a single family home 3 bed 2.5 bath 1500sq ft. The issue is that the current mortgage is about $300 more than the average rent/month for comparable  homes in the area. I also recently thought about Airbnb but I have zero experience on renting a property or listing one on Airbnb. Any recommendations on what people have done in the past would be great! I really want to keep the house long term for the equity. Thanks! 

The city of Fresno has a major University and several hospitals which means that in 2 years you could potentially use MTR's (Mid Term Rentals) Travel nurses, Ultrasound techs and potentially renting rooms to students all of which would make you more money than LTR's (Long Term Rentals)

You have 2 years to do as much research as possible to minimize mistakes and maximize profits. When you turn your primary into an investment property you will be ready to execute an MTR with tremendous success.

You can do this, and I hope this helps.

Wow that’s a great idea! I never even thought of that. Do property management companies do something like this? Id most likely be moving out of state and wouldn’t be there physically to help maintain it. 

Yes, they do and since you have so much time, I would call up at least 10 Property Management companies in Fresno and get a feel for what they do. I'm sure that many companies specialize in MTR's because the rents are strong, and properties are in high demand in Fresno county.

If you're moving out of state, I would highly recommend that you have a professional manage your home when that time comes around.

I hope this helps and have a good one.

Quote from @Christian M.:

Hi everyone,

I am looking for some insight on how to best prepare to keep my current residence as an investment property. I’ll most likely be moving in about 2 years and I’d like to use this as a rental property if possible. It’s a single family home 3 bed 2.5 bath 1500sq ft. The issue is that the current mortgage is about $300 more than the average rent/month for comparable  homes in the area. I also recently thought about Airbnb but I have zero experience on renting a property or listing one on Airbnb. Any recommendations on what people have done in the past would be great! I really want to keep the house long term for the equity. Thanks! 

The city of Fresno has a major University and several hospitals which means that in 2 years you could potentially use MTR's (Mid Term Rentals) Travel nurses, Ultrasound techs and potentially renting rooms to students all of which would make you more money than LTR's (Long Term Rentals)

You have 2 years to do as much research as possible to minimize mistakes and maximize profits. When you turn your primary into an investment property you will be ready to execute an MTR with tremendous success.

You can do this, and I hope this helps.

Quote from @Uriel Resendiz:

Hi! I am in the process of getting a four unit it Bakersfield but need someone to guide me with Tenant Laws in Kern County is it just as strict as LA County? Is there Rent Control? how much rent can I raise when purchase ?

Thank you for your Time 

 Contact a Property Manager in the area and pick their brains about these types of laws.  A good PM will know all the rental laws in their county and are extremely valuable assets to your landlord business.  Doing your homework upfront is imperative to being a successful landlord.  It's great that you're asking the questions, just make sure you know the answer before you buy.  This will give you the best opportunity to win and run a business that cash flows from day 1!

I hope this helps and have a good one.

Happy Friday BP,

This post is for information, and I will post a link direct from the source for you to view.

So, effective March 7th (All loans submitted after this date) Freddie cash out loans will require 12 months seasoning with some exceptions (I will post a link so that you can read up on it) like if you inherit the home or you're buying someone out if you have owned the home jointly for at least 12 months. Divorce comes to mind but there’s many more scenarios that this will fit under.

This is a huge blow to rehab refinancing using Freddie. Fannie has not changed their guidelines as of today (1-20-23) and remain at 6 months which is great. This will also make DCSR loans and other rehab loans look much more attractive moving forward since many of those lender’s investors don't require 12 or even 6 months of seasoning.

If you're executing BRRRR's or any other type of rehab strategy that requires a refinance, make sure you're planning accordingly if you need to use Freddie. They have some very favorable guidelines towards student loan debt etc.

It's imperative that you use a Broker or Loan Officer that has experience in this field as this will make your transaction run smoother and faster for you.

I hope this helps and have a good one.

https://guide.freddiemac.com/a...

https://guide.freddiemac.com/a...

Quote from @Kailas Tare:

I have signed contract for SFR on a vacant property. Owner does not live in house and it's currently empty. Purchase and sale is signed. I have to only wait for bank to complete the closing formalities, but I am confident that closing will go smoothly (my DTI, closing funds and property purchased 15% below market - all positive points). My question is is there a proper and safe way to utilize this wait period and start a paint work before closing. This will allow me to start renting it immediately after closing. I understand in the worst case I might lose $$ spent on paint rehab. But is this something investors do?

 Don't start any work until you have keys in hand.