All Forum Posts by: Thomas Loy

Have you tried Aarons?

@Charles Parrish, I need some help understanding how this works. I called a title company, they "do not do that type of thing". I was referred to an attny who deals with these types of matters. He says I still need someone to fork over the money, as in a conventional mortgage the bank would. So basically, who's the bank?

Thanks for the reply. The problem with selling that house, we would end up having to bring money to the table. She bought it at market value at the time. She was eager to buy and then the market went down a bit. 

So, I am at a loss of what my next step should be. I currently own three propertues. One being my personal home, one is the house my wife had bought before I met her (which we now have rented out), and the other is a sfr. I took the equity out of our personal home to purchase the rental. We got it all fixed up and we are making a very good return on it. We're not making hardly any return on the one my wife previously owned. Our newest rental (the one bought with the equity) has no mortgage attached to it. So all that equity is there. I would like to take the equity from that and purchase another one. Problem is, I bought it in my wife's name. She doesn't have the income history the bank is looking for and her debt to income is too high due to using credid for repairs. I have solid job history but my debt to income ratio is even worse than hers since I too used credit through Lowe's for repairs. They also want a crazy amount of cash reserves set aside. What's my next step here? I can elaborate more if you questions. 

Thanks!

How does that work with having to live in the house? Obviously, it's not possible to have two houses as your primary residence.

@Elizabeth Colegrove, how were you able to "split the loan into 2 houses"?

A lot of people have commented that wholesalers are way off on their ARV and rehab costs. I have a few questions to ask regarding this;

First off, given their comps are really accurate comps, how are they off on their ARV and how do you develop a correct ARV?

Secondly, how do you determine what the rehab costs should be? I use the 15/20/25 method but it seems my rehab estimates have been relatively high.

Lastly, have ya'll tried explaining proper techniques and ways to determine the ARV and rehab costs with the wholesalers? In my opinion, it may be worth teaching them the methods to accuracy in hopes they will retain and use the information to bring in true deals and no longer waste your time.

You could also try getting a POF from a hard money / private lender and then close with your buyer.

With REO properties, you are not going to get around the POF. Banks won't let you wholesale, you will have to double close. Get a POF from your buyer if you already have one lined up. And, I agree with @Damon Armstrong , be up front throughout the entire transaction.

@Brandon Woll 

Did you try looking into the county recorders office? In my area they have the mortgages on the property recorded since the first buy. I would look there and see if you can get anymore answers. Some counties make you pay a small fee, just an FYI.

I went through the same thing with Wells Fargo. Big banks are a nightmare.