All Forum Posts by: Kathy Utiss

Usually FHA only goes up to 4 units. However, they are supposed to have a multi-family program for over 4 units. Not sure if anyone can chime in about such availability for you or not. If so regular FHA is 3.5% of purchase price down, closing costs, 75% of income generated from each unit is considered to use as income towards the loan. You don't say the purchase price. There are other things they will consider as well. Like Insurance, repairs,future income growth. My biz associate says you usually want a property making 10% so if your buying at $2m it should have an income of $200,000. If you can't get this property maybe going with a 4 unit one even without such a great deal would still be beneificial. Maybe you could get down payment assistance that way. Not sure what MA offers but I'm sure there are probably programs. Although, read up and see what you qualify for there may be better options besides FHA.

These are other things to consider-

Purchase Price $175,500 Possible ARV is $234,000

if correct your purchasing at a price of 75% LTV

This is a possible equity gain of $59,000

Then if your selling sometimes seller's pay 6% this is $14,000

Then you will need a good repair estimate. I might even suggest a home inspection. Some lenders only accept from vendors they can verify performance on. I'm thinking there is a special name for them besides a handy man or licensed contractor. So without repairs your down to $45,000. Then you have to be sure of the days on market for homes similar to the one your purchasing. Cause after putting everything on the line you don't want to be left with no way to continue forward as responsible as you are now :) Sounds like the monthly costs and rents are about the same. That could make it a difficult situation. 

Have a client thinking about buying an Air B&B prior to a primary residence. This way they would have more income. After expenses income is $15-$18,000 a month. Which way do you suggest. Want to advise them the best way.

I call it selective prosecution. Subject to equity skimming is all so many know. So the best way to avoid foreclosure is to insure one's debt at creation. It costs someone $0 to find out if they can. The lender is insured of no default and a minimum of 2.5 times payout. 

I started unraveling this nightmare when my employer lied about having signatory authority to settle or sell mortgage notes. Of course had they not lied at the acceptance of employment I wouldn't have been selling such. The employer who lied their board of directors are over 35 of America's top law offices. 

 If you go to court with a way to be responsible they don't want this. I know as I had bankers with $150,000 a month who got told because they were not spending xyz they wouldn't sell notes. The next investor with $50 million a month couldn't get biz done either. As once the bank sold the worst possible notes they still wanted to make money on them. The equivalent of paying cash and demanding indefinite payments. 

The real question is who decides if you know your true identity or not. Or if you really should have inheirted billions? Who decides this prior to your birth? Who sits in the backroom with the vodoo dolls? As here is my rich uncle who kicked the bucket. He was the miner for the man over the 1st holding company in all America.  The legacy my family left me is out of this world. A world famous supposedly fictional great grandma according to grandpa. Yet I have her in a picture with another well known figure of the day. My uncle Pat Durack https://archive.org/details/twentiethcenturyv1padd/page/n561...

I'm so grateful for all real world answers given by everyone. Sometimes I even go to some of the pages for more information. As most are thoughtful and honest in their knowledge. I don't know what I'd do if I didn't have a place to help me keep my knowledge in check. :) 

I would check the redemption laws on foreclosures. While investors invest there are many that wish they didn't. But I guess that could happen anywhere. Be sure to utilize tools of the trade for the best information. Pacer.com is for researching if someone has filed bankruptcy or not. Use netronline for looking at county records. If they are available online or in person. Sometimes the recorders office may not be online but the tax appraiser is. As for repairs on the purchase of a home prior to auction there are some professionals utilized by the professionals for costs to repair the home in best and worst case scenarios. While online market places are helpful utilize more than one to come up with the best possible ARV. Sometimes a name search will also reveal things on people not usually available until the technology of today.

I could be totally off key here. But what about using a different way? If you create or fund an IUL instead of paying cash you can then get a loan on the IUL. Then they receive the money and you still keep your money and earn money on it. This then will leave the property free and clear. The loan will be on the additional collateral you created. With future income you pay off that loan as well. Or you can create the policy donate it and should be able to get 2.5 times the value for tax purposes. So like $200,000 (donation) x 2.5=$500,000(deduction) these can also be used over a couple of years for deductions going forward. I've become a firm believer that it's not just an ability to pay but how you pay. If I'm wrong in my thought process like others I'm here to hear the best advice for all of us :) 

These cases are trickery at best. I had one I tried to get resolved years ago. Homeowner filed chp 7. Abandoned the home. Home went to tax sale county kept excess proceeds. Lender wanted homeowner to sign something to recieve the funds. After wanting them to sign something they never provided it! County earned $75 grand on that one. So be sure to do your due diligence. Just like any other real estate scenario. 

This is some of the best information I've read in a while. Thanks Jerry W :) 

If you have an address you may be able to verify who owns property via netronline.com. The tax assessor will usually send a tax bill to an address the owner is listed as recieving it. Once you have the owners name you can check the status in pacer on the bk. Probably even figure out the status of the property. If the property was involved in a bk it was put into an estate for the entity who filed. There is what they call a stay on the property in residential cases for at least 30 days. Secured creditors in order to take the property are to put in a motion to lift the stay. There is usually a hearing to determine if this is done. There are different types of bk. Chp 7 & Chp 13. There are different things to know and understand. I would verify status with bk at pacer before sheriff office. As anything will have to be authorized before the sheriff does it. That is in a PERFECT WORLD. It may at least help you figure out if its worth putting more effort into. While R/E investing is about the same nationally the laws are different in each and every state. Bk is FED though so anything involved in bk will need to be verified thru the court nationally before a sale. I feel in real estate if one is truly involved in it these are two of the most important sites utilized. As there may even be updates found in the court that hasn't been put out to the county yet. As far as sheriff sales most people have probaby been approached by every investor in the county possibly the country. Many of the entities involved in this line of investment are cut throat and liars to the core. Some investors know block by block which places not to invest in. They take gang relationships into consideration as to wether or not to invest. This is important as you don't want to buy something thinking you will exit it and no one will buy it! Due diligence is so necessary :)