All Forum Posts by: Souvik G.

@David Glass Is that price for a swap-out with permits/inspection?

@Alessandro A. I am not sure if I am allowed to advertise Brokerages in the forum posts, so feel free to PM me and I will point you towards mortgage bankers in Charlotte who will do this for you.

@Tim Sherrod - The mortgage is on the ARV, so they will lend upto 75% or 75k AFTER renovations are completed and the house becomes worth 100k. If you start the process as soon as you close, the appraised value is 50k, so they will loan upto 37.5k. The key here is to wait till the renovations are complete. Guess how do I know? :-)

The example you gave above is when you do a cash-out refinance within the 6 month seasoning period, and say you used a Hard Money lender for purchase, which still counts as mortgage.

The key here is an all-cash purchase in the individual’s name. 

If you purchased it in an entity’s name, you will have to wait for min. 6 months and the delayed financing exception doesn’t apply. Big Banks, like BoA and Wells want you to wait 12 months instead like @Nasar Elarabi mentioned. As I said earlier, the Bank underwriting departments are not investor friendly.

ARV. But your repairs have to be completed before the appraiser comes in. I haven't worked with Banks but almost all brokerages I have talked to will lend on the Delayed Financing exception.

If you are purchasing the property with cash, you will qualify for Delayed Financing, which doesn't have a seasoning period. Delayed Financing can be started as soon as you are ready to get an appraiser into the house to appraise based on the updates/renovations done.

Google - Fannie Mae Delayed Financing

You will have better luck with Mortgage Brokerages rather than Banks if you are going for a conforming Fannie Mae conventional 30-yr/15-yr mortgage - both with rates and investor-friendly service.

Kiran,  

Have you looked  at the short term rental market in Gatlinburg/Pigeon Forge or Myrtle Beach? That could be a new option to explore. They cash flow extremely well, but need a little bit more of your time in responding to Inquiries, questions, general maintenance requests from renters. 

That is where I branched off when I was at your stage about a year back. You can automate a lot of the regular touch-points, and have cash flow that is almost 8 to 10 times more than from a long-term rental.

Hit me up if you need more information!

Vik

Your best bet would be to check with Independent agents, not necessarily in the Charlotte area, who have access to multiple providers and the surplus market. Insurance companies have become very picky about non-owner occupied properties. 

I have been happy with Swimmer Insurance here and my rentals are covered by Cincinnati.

Most of us investors here in Charlotte use Harry Marsh. You can't go wrong with him or his excellent team. 

Prices are rising and deals are drying up here. However, if you add doing some renovations to your approach, you can still get houses on MLS for 20%-25% less than market from owners who want to sell as-is.

@Harry Marsh - how do we start chasing these Subject-2s in Charlotte? If we don’t have direct marketing infrastructure, are there any other ways to get leads?

I have used Harry’s firm (Harry Marsh Law) for a double assignment closing last year and the process was very smooth and all electronic. Recommended!

I also use Northpointe Law Group(Kayce Staehle) for closings and they have very competitive fees and a great team of paralegals. Smooth closings, recordings and payoffs need an equal contribution from paralegals from the firm.

My CPA is Richard Wood and he does a good job. LB&J is very reputed as well among local investors.