All Forum Posts by: Winston Covington

just spoke briefly with Rusty. Apparently the Bank prefers to deal with local folks and aren't too interested in out of area investors. We're going to talk further in apprx. 30 minutes but it looks like I will need your referrals. Thanks again

Hey Craig, I'm just learning how to get around this site. I just tried to send you my email but got blocked. How do I send you a private message ?

Thanks Craig, I've already called the downtown Huntsville Branch for Bryant Bank but Rusty wasn't in. Could you please send me his cell phone # ? It looks like you tried to in your earlier message but it's missing one #. Thanks !

I recently purchased 3 great single family Homes in the Huntsville / Madison County area.  I want to purchase

more but I’ve hit a roadblock with conventional financing. According to Fannie Mae Guidelines, the minimum 

mid Fico score needed to purchase my 7th through 10th investment property is 720 and my mid score is now

just beneath that.

I need a Portfolio Lender to help me buy additional investment properties in the Huntsville / Madison County 

Alabama area. Portfolio Lenders do not have to work with Fannie Mae guidelines and can be more flexible with 

their underwriting guidelines.  I would appreciate all recommendations.. Thank You !

Hi David, for a transaction to work well there has to be good faith on both sides. From my perspective, you’re not getting that from the Seller you’re dealing with.  Personally, I would walk away if the Seller wasn’t listening to the facts and denying the truth.

Remember that some of your best deals will be the ones that you say no to.

Hi Einat, I just spent a week in Huntsville and was introduced to an Excellent Realtor who is very knowledgeable about different areas and schools in the area. His name is Mathew Nixon with Coldwell Banker First Realty on L & N st.
Send me a private message and I will give you his #.

Justin, focus on areas which offer a diverse economy, growing population and affordable housing. In addition, school districts matter and avoid any area with high crime statistics. Do your research and concentrate your efforts on areas that will attract and retain quality, long term tenants.

Possession after the close is negotiable and is typical for most transactions where the Seller is occupying the property. In Southern California, the custom is to allow the Seller 2 to 3 days to move out after the close of escrow.

Now for periods of time longer than that, a reasonable rental rate is charged. In your situation, the Seller has requested 30 days after the close and I would say that would be acceptable as long as the Seller compensates you for your carrying costs. Meaning the true cost of your monthly payments ( principle, interest, taxes, insurance ) and your yard service.  All utilities would be on the Seller as well.

Hope this helps.

Hi Shannon. Great question and one that I have asked myself many times. After some serious thought I have decided that I will be paying Cash for my next investments. There are lots of personal reasons behind this decision but the biggest factor is that I want to put myself in a better position for retirement income. It would also be more beneficial for my family should I become seriously injured, ill or pass away.

Over the years I have seen property values rise and fall with the economy. I have also known many investors that lost their investments by being too highly leveraged. Having good cash flow properties that are debt free will help you weather upcoming economic storms as well as provide a more secure future.

It all depends on whether your goals are looking for appreciation,  cash flow or a little of both ?

First and foremost...Location, location and location are the first 3 rules of Real Estate. If YOU aren’t comfortable with buying in these areas - neither would most tenants want to rent there.

You can definitely buy a SFR with FHA financing, that's how a lot of folks buy their first home. You can also rent out rooms but remember that you must have the intent of living in the home as your primary residence.

Last, I would contact one of the lenders on Bigger Pockets and have them walk you through FHA loan requirements and get a good understanding of the do's and dont's.

Best of luck in your future purchase.