All Forum Posts by: Valerie Pedigo

I'm sure you will get it all smoothed out! Research is key and you are way ahead of most - as most people just talk about starting.

I have been investing for several years - flipping and holding a few rentals. I recently started wholesaling, and have completed a few transactions.

Good luck to you and thanks for the colleague request! Let me know how your deal turns out!

I'm not super-experienced in wholesaling, but I use the standard Board of Realtors contract and an assignment agreement (very simple, just states my fee, deposit, etc.) My local BOR is assignable and well worded. But, there are some (like the Niagara County BOR contract) that are a million pages long. Blah.

For double-close, my contract as the seller is a little more detailed with disclaimer about the condition of the property, etc.

The seller is probably talking about a land contract?

They would sign a statement of sale and land contract paperwork. This would be recorded in the county. The owner of record would still be your seller until the 3 years is up and the buyer met their commitment. After the 3 yrs (or however the contract is written - I do 2 years or upon securing permanent financing) - the owner of record changes to your buyer.

If he transferred the deed to them now, and just held a private mortgage - he would have to foreclose upon default.

Although - there is an eviction-type process if they breach the land contract. It's not like he could just kick them out this way - it is an enforceable legal document.

Have you found financing for this yet? I haven't seen much over 70% in the commercial realm these days. Is the seller willing to hold a second?

There isn't a difference in panel built vs. stick frame as far as appreciation goes. If looking from a lending stand-point, there is no way one could tell the difference. The dry-in time on panel built homes is awesome. Also, because the panels are computer engineered, there is less waste and less chance of theft on the job site.

While I agree that manufactured homes are nice - there is a huge distinction between them and stick/panel/modular when it comes to appreciation and lending. As I stated in my first post, it is almost impossible to get conventional financing on a double-wide nowadays.

More info about panel homes in my sig.

Here are the guidelines for Fannie Mae - just to give a rough idea of LTV. I don't know of any 10% down noo programs. Also, unfortunately, USDA/VA/FHA do not lend on noo investment properties.

1-4 Financed Properties

Full Doc - Conforming ($417K)- Fixed

1 – 2 units -Purchase & Rate and Term Refinance
Maximum LTV/CLTV â€" 80%, Minimum FICO â€" 660
Maximum LTV/CLTV – 80%, Minimum FICO – 620
Maximum LTV/CLTV – 75%, Minimum FICO – 580

3 – 4 units -Purchase & Rate and Term Refinance
Maximum LTV/CLTV â€" 75%, Minimum FICO â€" 620

1 – 2 units – Cash Out Refinance
Maximum LTV/CLTV â€" 75%, Minimum FICO â€" 620

3 – 4 units – Cash Out Refinance
Maximum LTV/CLTV â€" 65%, Minimum FICO â€" 620

Full Doc - Conforming ($417K)- ARM
Same as above.

Full Doc - Non-Conforming (>$417K)- Fixed and ARM

1 – 2 units - Purchase & Rate and Term Refinance
Maximum LTV /CLTV â€" 80%, Minimum FICO â€" 740, Maximum Loan $650,000.00

3 – 4 units - Purchase & Rate and Term Refinance
Maximum LTV/CLTV â€" 75%, Minimum FICO â€" 740, Maximum Loan $1,000,000.00

5 Through 10 Financed Properties

Full Doc - Conforming ($417K)- Fixed

1 unit - Purchase
Maximum LTV/CLTV â€" 75%, Minimum FICO â€" 720

1 unit - Rate & Term Refinance
Maximum LTV/CLTV â€" 70%, Minimum FICO â€" 720

2 – 4 units - Purchase & Rate and Term Refinance
Maximum LTV/CLTV â€" 70%, Minimum FICO â€" 720

The closing costs are about the same between them. For FHA you have to have MIP no matter what, even if you put 20% down. With conventional, if you put 20% down you don't have to pay MIP.

If you are looking for non-owner occupied properties, conventional is the way you have to go.

Seller concessions are the same - up to 6%.

Are you getting ready to make an offer on a property?

Are you asking if you should open a separate checking account for your rental income?

If you ever need to use the rental income to qualify for a loan - you will want to make sure you claim it on your taxes, deposit it consistently, and have signed lease agreements.

You don't have to open a separate account, but it will be easier to reconcile. If you plan on starting an investment business, you should have a business checking account.

Definitely don't want to change if it doesn't make sense. 3 bedrooms are much more marketable, but from reading your posts it looks as though you are buying and holding.

IMHO- you should be able to recover the costs of a rehab or conversion within 24 months. So, if you will get $100 more a month from a 3 bed - the conversion shouldn't cost more than $2400.

I've never run into 60%. For conforming loans (which would include the Fannie Mae 5-10) semi-liquid assets are discounted to 70% of fully-vested value to account for the 10% penalty and 20% in taxes. More liquid investments, like mutual funds are like cash.