All Forum Posts by: Darryl Dahlen

Josh,from reading some of the posts lately, it seems there is an issue with double posts.

I know when I replied to a post yesterday that it happened to me. Now that I see it happening to others I thought I'd bring it up.

What happened in my case is that when I hit the reply button it took me to a blank page because the site page wouldn't load.

As a result, I can't tell if my reply posted so I hit the back button and hit reply again, which creates a double post.

Is this what is happening to others?

I'm starting to wonder if BoA might be headed for trouble.

Their stock has fallen 20% this week alone and is trading at just under 7 dollars a share.

They were also just hit wit a 10 billion dollar lawsuit from insurance giant AIG. In essence, the lawsuit claims BoA sold undervalued/unverified loans. Big surprise there, eh?

They've already paid 3 billion to buy back under performing loans from Fannie and Freddie.

When you add everything together it doesn't look good does it?

How much lower can the stock drop before they have to take some drastic measures? What would those measures be?

There's been talk of massive layoffs if BoA stock continues to fall. As of late, some of the other big players have been trimming the fat.

Wells Fargo has recently laid off thousands and HSBC is shutting down a lot of branches while selling off 195 more to another bank.

Perhaps BoA will also be inclined to do something similar and will shed jobs in an effort to preserve their bottom line.

I know there isn't a lot of love for BoA here, but does this means that it's a good time to buy this stock and try to make some money off of them?

Great to have you join the ranks Larry.

I'm sure you'll find BP to be an asset as there is a lot of useful info here and the members are top notch.

Hopefully, that will translate into some increased business for you.

Based on days like this, I think we'll see 3's before we see 5's.

I think your reasoning to not use conventional financing is full of extremes and doesn't apply to most who operate within "normal" parameters when it comes to financing.

In reading your reasoning to not use traditional financing I'm reminded of those commercials that make extreme claims in order to promote their product, but state in the fine print that the results are not typical.

Reason I say that is I doubt many here could go out and find zero percent owner-financing and/or 2% private money. It would be nice if they could, but I think those types of deals are akin to needle in the haystack opportunities, not the norm.

Also, while there may be a small pool of lenders who would put their money on the street for 2% I have to really wonder why anyone would do such a thing?

I actually think it is rather foolish to offer money that cheap considering the inherent risks associated with investing in real estate. Not to mention the fact the lender could charge substantially more (7-9%) and still be offering what I'd call cheap private money.

Furthermore, I think using examples of being tossed in the can for using bank financing is a bit of a reach on your part. Perhaps the two you know who got sentenced deserved to be prosecuted. Perhaps not, but I don't think the honest person who obtains a loan has to worry about prison time if the deal goes south.

While the judicial system is catching up with bank fraud, I still marvel at how some of the obvious bad apples are still in operation, haven't been indicted, or got away with a slap on the wrist. I really don't think the honest investor has to lose sleep over the bank going after them providing they are honest.

Lastly, I don't see using the loan process, bank fees (which are often relatively low), or the off chance of the bank coming after the borrower as sound reasons to make the claim one should not use bank financing. It doesn't hold any water (or very little) from where I'm sitting.

Not to say I think banks are easy to get money out of. They're not, but for those who can obtain bank loans I absolutely believe that in most cases the upsides to using bank funds far outweigh the negatives.

I'll be more than happy to make a donation to BP should a loan close. :D

The good news is that while the buyers do their DD on the property Chris mentioned (which is actually a 32 unit), they have another 32 unit they want to refinance.

Another thank you to Loc for pointing this thread out to me, and also to Chris Clothier for putting me in touch with the seller/buyer.

I may have to send him some Maine lobsters if either deal closes.

I too am curious as to who is really getting these loans and from whom. The fact Jon knows someone who is getting $50k is a good sign so perhaps Chase is putting some money on the streets via their unsecured lines.

I know I've talked to more than a few people with stellar credit who couldn't get anything close to $50k on an unsecured line, but that was a few months ago. Things can change quite a bit in that amount of time so it'd be nice to know if any of the big boys are opening up the purse strings on ULOC's.

Something seems off. Why would a bank tell you your personal income doesn't matter on a 2-unit? It should.

Also, while I suppose the lender could use the DSCR as part of their underwriting it seems odd that they would since most lenders use DTI ratios when it comes to residential property.

Joel asked some good questions so I won't repeat them.

Yes, you need money for working capital. To the tune of 4% of the loan amount.

Yes, you need to make loan payments during the construction period.

One more vote!