All Forum Posts by: Tony B

Originally posted by "Scotty69":

How much does a Bankruptcy factor into your score? Chapter 13 filed 11/2001 paid out in 9/2005

Sorry for the delay. Been dealing with a death in the family.

The BK factors a lot in your score. More so in the amount of lenders that will even look at your application as it will limit your options.

The score is affected a lot because once you have a BK you go on the BK card which gets affected a lot worse by any credit activity that a higher quality card. When you are on a higher card you miht get hit for 6 points when someone pulls your credit but this might be closer to 12 points on a lower card like 90-day lates or BK etc. This example would still cap out at the 10% overall maximum for the last 12 months. So a 700 FICO high grade card would take about 12 inquiries to max out while the BK lower card would take only 7 or 8 to max out but it would take the score down the same as a high card person. If that is about 85 points max the 755 FICO would go down to 680 which is still good to work with on most products. While the BK card would proably have a lower score to start, say 625 but lose the same 85 from only 7 inquiries to take the score down to 545!! This works the same for all credit activity, in that the BK card will get hit harder on the numbers which is tough since they are lower to start with.

If the BK was discharged 09/05 it will be a long time before it gets high but that is a good thing because it is that way so that the person takes it slower and gets a chance to learn to manage their finances unless of course they just had some misfortune of getting hit with an illness and a bunch of medical bills took them down. Still same results though.

However.... There are banks that will give you a mortgage 1 day after a BK has been discharged. I even think there are some that will do it before!! They would most likely want a bit of down payment and would have a higher rate no doubt.

Please post any other questions and I will try to answer as I clear off my plate overdue items that got backed up over the past couple of weeks :)

Tony

BUMP

Hi everyone! I have a vacancy and was just approached by a company that places tenants coming out of drug rehab. They said the types of people are DUI, drug rehab, family abuse, etc. and they stay for a short period. Felony background checks are performed on all prospective tenants by the company. This is an important factor since I would be doing a long term lease with a corporation I wouldn't get to say who is actually staying in the house. It seems like it would become a half-way house really.

About my property: It is a seven year old duplex with 3bed 2baths about 1400 sq ft each. I have a section 8 tenant in one unit and the other is vacant. They would have upto FIVE people living in the unit at one time! Seems like a lot and brings up wear and tear concerns.

My questions are:

Has anyone had experience with this type of arrangement?
How can I investigate more about this type of rental arrangement?
Get referrences like people who have been prior tenants and other current landlords?
Should I be asking anything specific?

Care to start a Pros and cons debate? :)

Thanks for reading!

Originally posted by "ProHabber":

Secondly, what upsets me most about licensed agents IN GENERAL is that they do not add any value to the process. Getting a listing, putting it into the MLS and filling out some paperwork is not valuable. If the MLS was open to public listings and every home seller had an attorney, most agents would be utterly useless. ...

LOL and how about that they do not read that paperwork!! Or believe the tiny details they write/dont write/omit/read/dont understand/discuss while 'representing' their buyers/sellers are enforcable even. LOL

The worst part is that it's not just the newbie agents, but also many veteran agents. :roll:

Originally posted by "cprntr":

I'm glad to have helped.
If you do go with commercial, I think small neighborhood shopping centers are a good bet, especially if you can convince a credit tenant to move in. Starbucks, TCBY, ect...

That's what we were thinking. We have a friend who owns a small printing company and he was tired of renting. He contacted a national 'credit tenant' to find out if they would move into property in a certain area if he could find a suitable place. They agreed and he uses half the building for his company and half for the tenant. I think he may have elliminated his rent for his business and can now build equity. Pretty sweet if you can make it happen like that!

Thank you for posting this distinction of hands on investor involvement. Every distinction I learn and understand helps me make better, clearer and faster decisions.

I just had one of my property managers ask the tenant of one side of my duplex if she wanted to pick her new neighbor. He told me he got an application but it was very bad so he passed. So asking the current tenants for referrals in your multi-unit properties with vacancies is another option.

 Complete Biz Plan

Originally posted by "dcg123":

Here's a topic I hope we can all learn from. If you are a Realtor: I want to know what tics you off about clients.

If you are a Prospective Purchaser: I want to know what Tics you off about Realtors.

Hopefully we can learn from each other how to better our processes.

Myself, being rather introverted, developed a "Customer Profile Chart", when I first starting the real estate/mortgage business. So that I would have some point of reference as to the type of individuals/clients, I would be able to work with. On this chart I would grade, (from 1 to 10), a prospective buyer's responses to questions pertaining to the prosposed transaction. The questions where always simple questions like, "Where's the MOney", "How long have you been looking", "Where did you say the money was again". ect..

Anyway the reason I needed such a tool was because It helped me to identfy possible personality types that I would have a hard time working with. This helps me maintain a Tic Free, Stress Free Enviroment.

Hi Dick! What caught my attention about your comments was the customer profile and your insight to know that you were introverted and the type of personalities you would rather deal with.

I have been trying to figure this out recently regarding the RE investor personalities. I myself am also introverted and so is another successful fulltime investor I know as a friend. He is extremely introverted. I have also read that many investors or even the majority are professional degree holding empolyees who start in RE part-time. Many are engineers and other analytical professionals. I know of one as a client of mine. He is also very introverted high level engineer.
What are some of the other personality categories? And what is your and other forum members opinions of a dominating investor personality if there even is one?

Ok then. No advantage to having a pool in a rental. Only disadvantage. I guess a condo with a pool in the complex is ok if you want a condo rental.

There are plenty of properties without pools, why have the headache of extra maintenance and liability if you don't have to, right?

A few people have asked for ZERO down investor loans for 1-4 unit properties. You'll want to disclose in which state the property is located and I will post the lenders. I might even be able to help structure the loan options if in the right state etc. But YES there are a few lenders who do 100% NOO (Non owner occupied) loans and some will even do it on a 4plex!!

My first property was a condo that I bought with 3% down and PMI. 6.5% 30yr fixed nothing glamorous. These days I use releverage strategies to get 100% financing and sometimes I have sellers pay 3% towards the closing costs to buy down the rate... or just do a short term loan if I have other plans.

I'm eager to learn more quick turn around strategies to build up some quicker capital, hoping to find some good mentorship. Actually, you all have made me realize I have a good opportunity sitting in front of me but I'm still trying to figure out the how... I think I need more capital

Tony Baricevic
Amerimac First Mortgage CA