All Forum Posts by: David Pere

How much is the ability to assume a loan at 2.25% worth? 

Let's say I have a property that I want to sell and I have a VA loan on it. Let's also say that the property is occupied by a tenant who will be vacating in 30 days and I'm willing to leave it vacant for up to 120 days as needed to complete the assumption process. My goal would be to get the top dollar for the house. Let us also say I am willing to carry the second position note for someone assuming the loan. details below on the property ( I will use a property I own and could theoretically do this with... though not planning to). I would want an eligibility swap. My goal is to see what if any amount over normal market value you would pay to be able to assume the loan / What would you change about the deal?

Location: Chesapeake, VA (large military town)

Market Value: $360,000

Loan Balance: $245,000

Equity/Second position note: $115,000 (30 30-year amortization / 10-year Balloon Payment, 6.5% Interest, $727 monthly payment) - Bringing cash for this would save a ton of money for the buyer.

Rate: 2.25%

Years Left: 26

Current Monthly payment: $1,300 (including taxes/insurance)

Current Rent: $2,000

Scenario 1: 

-If you were to purchase with a new VA loan at 7% interest at market value your monthly PITI would be approx.: $2,757

-If you were to assume the loan and I carried the second note at the above terms your monthly PITI would be: $2,027

Saving: $8,760 per year.

Scenario 2:

-If you were to bring the same $115,000 as a down payment on a conventional loan you would pay: $1,992

-If you were to assume the loan and bring cash for equity position your monthly PITI would be: $1,300

Saving: $8,304 (with no need to refi in the future)

Since this is a hypothetical situation I'm going to give my number based on nat. average homeownership of 13.2 years. My personal opinion is that this would be a very buyer-dependent situation. If they were staying for 2-4 years probably would not be worth much more to them. however, if this was a home they planned to keep for 10+ years I think there is a huge value here. 

so let's go with 13 year scenario:

total savings would be approx. : $107,952 over the 13 years... I think it would be fair to ask for 1/3 of that savings as an incentive to assume the loan... so approx.: $36,000

Fair?

So could you see paying over the $360,000 Market value and by how much? 

If you would pay over market value how did you get to your number? 

Hi everyone!

The reason of this post if for advice. I would like to make first step and make a deal, but I will deploy on Jan 2024. I like to know if is wise to wait and keep developing knowledge about real state or take a risk and network with people that can take care of the property on my absence. 

I'm interested on:

-Multifamily with a VA loan.

-Short term rentals

-Single Family

Preference location Puerto Rico or Florida. 

Thank You 

Here's a resource for anyone moving to/from Camp Lejeune, MCAS New River, or MCAS Cherry Point

https://www.facebook.com/groups/eastcarolinamilitarypcs/

I’m pcsing in Dec to Camp Lejeune would like to buy a home that I will live in for 2-4 years then rent out.

What’s a good area to live in? I keep hearing Snead’s ferry or swansboro.

It’s just my wife and I and no plan for kids. Would like to be by the water if possible.

I was learning the VA Loan Entitlement process and wanted to verify if this is correct or if there's gaps in my research that someone can address and add onto:

From my understanding, if a VA wanted to get a second loan without selling their first home, this is the process:

And if my research is correct, I hope this helps out some of you :)

1. 1. You find out what the existing purchase was and multiply by 25% (has to be over $144K)
   1. Example: Home bought 2 years ago for $325K
   2. Entitlement used/ Entitlement Gurantee = $325K * 25% = $81250
      
      
2. 2. Find their leftover entitlement and see what county they are purchasing
   1. Most county loan limit: $726K (conforming loan limit)
   2. multiple that by 25% = 726K * 25% = $181,500
   3. you subtract that from the entitlement used:
      1. $181,500 - $81,250 = $100,250
         
         
3. 3. You can get the rest of their entitlement by multiplying it by 4
   1. $100,250 * 4 = $401,000
   2. They can buy a house up to $401K and still use 100% of VA entitlements
      
      
4. Bonus: If they want to buy a more expensive home, they have to put 25% down on the difference of the home and the entitlement
   1. Example: Seller wants to buy a $601,000 house
   2. $601,000 - $401,000 = $200,000 (difference)
   3. Down payment = $200,000 * 25% = $50K
   4. % down on home = $50K/ $600K = 8.3% down payment

Hi,

Im an agent in Virginia Beach and a Navy veteran. I have been curious about this method for a long time and have only seen it in theory and would love to hear from someone who has actually done it. 

The Theory is this:

(Quoted from VA.org: Those who apply for a VA mortgage with another veteran (a VA “joint loan”) may be permitted extra units for business purposes, which means your multi-unit property could have more than four units. Chapter Seven of the VA Lender’s Handbook clearly states:

“If a property is to be owned by two or more eligible Veterans, it may consist of four family units and one business unit, plus one additional unit for each Veteran participating in the ownership”.

That means if you and another veteran apply for a VA mortgage together you can build or buy a property with as many as “six family units (the basic four units plus one unit for each of the two Veterans), and one business unit.”)

My Take:

I interpret this as possibly a mixed use building with 6 residential units and one business unit like a restaurant or coffee shop down stairs. I do wonder if this could be accomplished with a 7 residential unit and using one unit as a short term rental though. 

Has anyone actually pulled this type of VA funding off? If you have please fill us all in I think this could be a huge opportunity for a lot of VA buyers that are looking to think outside the box.

Hey all,

Getting ready to Mob here in the next few days for the next year only to come back and mob with my brigade for another year. expecting to net roughly 120k over the next few years just from the army and roughly 10k from current investments. I plan to come home in 2026 with money, an ideal set for entrepreneurship, an MBA, and a drive to get on active duty from guard. I'm looking for advice on how I should go about growing my portfolio or if I should just wait until I am done with the army forever. I wouldn't mind making it a 30 year career already at 10 so... I also have a 4 plex outside "The Great Place".... and some in Indiana. the total cashflow for the portfolio this year is negative due to capital improvements but rolling into next year and the mob will be cashing 700-1000 a month and currently has 300k in equity of which 200k is accessible via heloc when I get back due to prior 4-year-old bankruptcy. wife is also getting a second job to save a little extra and pay off 30k debts from college and capital improvements. she brings in enough to have it paid off in 6 months currently but doesnt work very much and is starting to get bored and nervous about money and life and needs something to do. 

I'm looking to see how other people would grow what they have in my shoes. I feel like the best I could do is flip 2 hold 1, flip 2 hold 1... etc etc... or just dump all the extra money into downpayments on 150k dueplexs and make like 25000 additional income in rents a year which doesnt really seem worth the return to me.... 

My goal is to come home and either focus on my military career and try and make ltc in the next 10 ish years while investing in real estate or gtfo and quite my civilian job and figure out real estate full time. 

best,

Marc Globensky

Hello all - I am retiring this year after just shy of 24 yrs of Service. 

I've been investing for over a decade and working as a Realtor the last 3 years...

My main focus on the investing side has now been Passive Limited Partner investing in various commercial assets. 

I am looking to connect with folks at all levels -

Looking to get into LP investing, Done some... all the way to invested in many

One of my primary hedges against needing a W2 when I retire is going to be my Passive LP $ and I am definitely looking to connect with folks that have made the LP portfolio a major source of income their reality :)

Hello there, I am looking for where to find deals at. I have been analyzing for about 1-2 hours a day and no property’s seem to work for long term rentals.

I am looking at buying to live/renovate it for 1-2 years then long term rent after that. I am in the military so my end goal is to end up buying a property evry time I get stationed somewhere else (evry 1-2 years) 

I don’t need to find something that is going to have huge cash flow just enough so that I feel safe that I won’t be loosing on my investment. any information or advice would be much appreciated 

Hello family, I'm new to the group. After hurricane Maria devastated Puerto Rico, I decided not only to help rebuild the island but also to bet and invest on it. Nowadays I'm the owner of 6 doors here in P.R. very blessed for the challenges and experiences that helped me to build the right set of mind.

And thanks to the U.S. Army for building so great values in me. I'm actually an Army Captain (just made the selection for the Major's board :-D). And also, a Realtor® here in Puerto Rico.

Looking to learn, network, share what I know and keep growing. 

R/

Celso J. Ramos