All Forum Posts by: Kathy Utiss

I'm in O'Fallon, MO west of this area of St. Louis. This is a lower income area. There are always people needing affordable homes. But this area is riskier for tenants. As you are dealing in the city of Florissant at this point. The appreciation on property won't be as good as if you invest in other areas of St. Louis. Still in the city but the potential to rehab, gain a lot of equity, and rent to hold opportunity is better in like the 63108, 63118, 63116 zip codes. There may be other areas as well. As Kathy said a Pm could help. But if you do your homework in those zip codes you can do it yourself. Online tools are very helpful. As some real estate websites give free info. I like not to promote or anything Realtytrac as you can put in a street name and get values comparable as an appraiser is likely to do by area and sq ft with repairs done. By using the currently solds, for sale and such. 

This is what they say about the CARES ACT in Texas. I would assume most of the requirements are universal .

https://www.kbtx.com/content/news/Local-bank-to-provide-CARES-Act-loans-to-community-569193501.html

Good evening...Since, about 1994 I've been in the asset management industry. I initially got into the biz via recovery on credit cards. Then the more experience I got the better my opportunities got. In 2001 I started doing recovery work via a 3rd party agency.  In February 2004 I found out the agency I accepted employment with never had it in their contract to sell mortgage notes for xyz. Then the other company didn't sell their's but did end up selling theirs. I know it sounds confusing. But in some cases google can be our best friend. I've been documenting my experience since about 2007 when I found out the people wanting to be paid couldn't prove ownership. 

I proved this in court. Instead of being made to pay fines as putting fraud into the court knowing it's fraud is supposed to be a $500,000 penalty I was made to be a deplorable. You know being one of America's top asset managers the only way I had to pay to keep my home since they lied depended on me getting an opportunity to get honest business done.

As it really defeats the purpose in having any accredited investor that can spend $150,000 a month on npn or an investor with $10-$50 million per month on deficiency balance notes if you can't get honest biz done!

Needless, to say the attorney that refused to file an adversary when I did my own and put his in with it things went POOF in the East Dist of MO-St. Louis. 

Currently, if you put money down to purchase a property it can be up to 30% down. That's to get a loan usually 30 yrs in term on a p/i basis + your taxes+ ins. If when you close on a loan you insure it yourself against default YOU DO some interesting things.

*You INSURE your PRINCIPAL at a discount. (Avoiding Reserves)(TRIPLE A+ RATED)

*You INSURE your DOWN PAYMENT against loss

*You end up with an interest only loan for the lifetime of your loan. Meaning all that principal like 18 yrs WORTH YOU as an INVESTOR keep in YOUR POCKET.

*INTEREST is A YEARLY PAYMENT

* You still gain property appreciation as well 

You can only do what you can to protect you. What their offering is short term assistance. Anything that modifies or extends means you owe longer. I've seen things one could never imagine.  I respect professionalism as I've always attempted to be one. But unless you want to waste money you don't have I'd get out of any p/i loan and you avoid such catastrophes such as this. As even if a certain percentage get down to paying you should still make enough to pay interest. Which is better than ever chancing default in a cruel world that won't care what your abilities are. 

If you have a way to manage without doing a modification on the account or a forbearance you are probably better off. I've been an asset manager and once an account goes into delinquency chances are you could face issues you could never imagine. Most banks suck at servicing accounts. It's quite interesting what they get by with as well. If you enjoy the assets you already own seek other methods. That protect you as an investor now and in the future. If you have more than one property perhaps doing a whole new loan would be better. The rates are low. There are loans you can get done that are interest only without balloons. Maybe a blanket loan. Interest only loans vs P/I really puts an investor in money mode :)

Sad that someone would say such...But the result of you posting this has brought some inspirational thoughts for everyone of us. Many jump into real estate thinking quick riches. Reality isn't always that. There are a lot of good and bad stories surrounding real estate or banking transactions. Good to see positive postings to keep us inspired :)

I agree with Greg.

Depends on the numbers. There are lenders doing such loans as well. If the land is worth enough and you can setup your exit strategy it's quite simple to do. You could even do with no money out of your pocket. 

Manu, 

Those are some pretty big numbers. But if your in such an area then I suppose go for it. The seller is being paid by the purchase. Unless, they are willing to hold some of the financing for the land once homes are completed I wouldn't offer more. But if they are doing more maybe do a certain percentage on each home say like 2% of the build cost not sell cost. 

I think 1.5 years is a long time to build. I believe if you do a custom modular home you will get just as much satisfaction out. But way less time to build! Plus there are contractors ready to do this.  The lending is a lot more flexible with some of the players out there. 

I only know this as we've been developing a new build opportunity doing such on the east coast. I know one of the lenders we're working with if someone signs up with the net worth you mentioned you could become your own builder pretty much nationally. 

We have 165 lots we're working on. We also have more homes wanted in Las Vegas. The lending opportunity in the field is good. You wouldn't have as much outlay either. But on ours we're not doing multi million $ homes. Probably in the $350-$500,000 range. But there is still a decent amount to benefit all alike.  

In this scenario you have to be careful as some home owner associations don't allow modular homes. But you would have no clue their modular! That's the crazy thing. 

I would be at the city or county office asking about flood plains or environmental hazards in the area. Don't want to buy where you can't end up building! Not sure on a water tank easement how that works. I know on ours we've had to do a whole design to tap into the current system in place. That's been an extra expense. Besides the design there's also a tap in fee for each lot as well. With the homes we're building we're coming in at less than 65% ltv. Better then buy/rehab any day. Built brand new! Lenders like a whole lot more. And actually there are a lot of families needing homes. Who thought there would be a housing shortage in America?

Good Luck :)

Here's a pic of one of the homes

 here it is.

795,000/360 = $2,200 a month before interest is even a part of it Prin Repayment

$8,458/12=$704.00 monthly taxes

$4,000/12=$333.33 Ins monthly(hopefully not more)

Which leaves $8,263 per month before interest or repairs. With the looks of this one on the inside it looks like the repairs could be extensive. Not something that is a 6 month turn around time.  I'm surprised it's rented. Definitely would be an opportunity with the small sq ft to make into nice 1 bdrms that would get more rent. There is a market that is getting higher rents there. $1,100 for 700 sq ft.  But they also are newer developments with the modern things people like. However, not everyone can afford the same luxuries.   

I would also never put all my eggs into one basket. People talk about the BRRR method. It does work great to a degree. Unless, You get told one thing then another and what you were told isn't true. Then you've purchased a property, rehabbed it expecting to make xyz then you don't because you can only go by what you were told at the time that wasn't true! It does happen. So do good deals. This one say's under contract on loopnet.

Wonder if their scheduled rent is really what it's bringing in or expected to bring in. People play on words in listings and until you talk or see proof it's speculation. 

Zillow and realtor are good to a degree they both have their faults. But what industry doesn't. Realtors can be a good source. If it's not one you know ask for a BPO. Some will do free others will charge a fee. But you can get real close by using zillow, realtor, and realtytrac. Then netronline.com. Netronline is great for checking county records for taxes and liens. If that city, and state are online.  I think realtytrac does an excellent job of showing property info quickly and efficiently to make choices.

Hold your head high..Act with dignity and integrity as much as possible. Be honest. Those you mention are definite attributes. Banking/Real Estate can be a hard business. Rather a flipper, homeowner,investor, collector or, lender. People should know this buy talking with you. Testimonials from satisfied clients might be good as well. Do you have a blog/website to display? If someone is being negative have them write down what they find is negative. Advise them you would like to assist them with answers as soon as your able. Sounds stupid I know. But customer service, and follow up is everything in this business.