All Forum Posts by: Vince Liu

Hello BP - hope everything is doing well!

Just finished my first rehab and about to do the refinance so I was wondering - does the Property Value you provide to the lender matter? (which is the ARV you think it is)

I know that in a Purchase, the appraiser would more or less consider the contract price, would it be similar when it comes to Refinance? 

Thanks!
 

Hi @Matthew Crivelli - when you say 'Cash' did you mean cash in the borrowers bank account? Meaning they have good cash reserves / liquidation?

Thanks!

@Andrew Postell Thank you! Super informative post! Quick question - for me, the Conventional Loan you mentioned in Section 2 is good enough for me - I purchased this property for $115K in Cash and it's currently valued at $130K. The lower of the 2 is 75% of the ARV ($130K) which is exactly what I'm looking for. I asked a couple of conventional lenders they all told me that I have to wait for 6 months. Should I just keep searching, or has the rules changed?

Thank you!

@Karissa Green Agree with @Andrew Postell purchasing a property from a company that you own will result in a huge tax bill on capital gain because once a 'sale' happens, a 1099 has to be issued, and therefore IRS knows a sale has occurred. I've tried to "purchase property from myself" and have a seller (which is also me) give a 'seller credit' to offset that capital gain tax, but the lender would not be okay with it. Most lenders won't allow any credit bigger than 3% of the purchase price. 

That said, if anyone has any creative solutions to work around, please let us know!! 

Thank you @Chris Mason for your insights. I guess if I am able to obtain an agency loan then I should get it every time. If I can't get an agency loan based on the situation (whether out of limit or does not meet the agency guidelines), I just have to take non-agency rates as my assumption when analyzing a deal and then proceed if it still makes sense?  

Thanks, @Stephanie P.. - wow great insight! Really appreciate it!

I guess what I'm trying to achieve is that when agency rate are in the 3's I'm trying to find the DSCR loans that are 4's rather than 5's. But I agree with you, as long as the number works we should take it because the rates will not always be at 3's.

I've also used a local credit union that offer very good rates, somewhere around prime + 0.25-0.5%, which was good but I found it difficult to find in the new market we're investing in. Do you have any suggestions on finding those? Should I rely on referrals? Or search online and making cold calls to local community banks / credit unions? 

@Nick Belsky Thank you, Nick! Very informative!

Hello BP,

I recently purchased this triplex that is converted from a single family home into 3 units. I was wondering what property type would it be when it comes to Mortgage and Insurance. Apparently there are better terms and rates with single family than with multi-family, however, is there any rules that go with it? Can I get an insurance and a mortgage for this property as a single family?  

Thank you!

Hello BP - I've been trying to find a good portfolio lender for rental property acquisitions. I've talked to many national portfolio lenders (included the recommended vendors on BP), they either have super high interest rate or crazy fees. Not trying to ask for recommendations of lenders, but merely...what is the way to go to find a good portfolio lender?

Thank you!

Hi BP! 

I'm considering purchasing a Home Warranty for two rental properties that I recently bought. Those two properties are in great locations and provide solid cash flow, but they're quite aged, and so are the home systems. I'm trying to purchase a home warranty so that in the case of BIG capex such as replacing the HVAC system, they can cover it or at least cover a big portion of the costs. However, there are also a ton of terms and restriction in their terms, so I'm not sure if they will even honor their coverages. How was your experience with Home Warranty and dealing with Home Warranty Company?

Thanks!