All Forum Posts by: Xavier Mc holder

Hey so I am purchasing a new construction property with some added upgrades that I have paid for out of pocket in full to the builder. The bank I am dealing with wants to add the amount of the upgrades to the Total sales price. Have any of you experience this before? should I look for another lender ?

I don’t see the benefit of doing this? Including the upgrades will mean that I now will be paying for them long term through my loan correct or am I missing something?

Hey so I am purchasing a new construction property with some added upgrades that I have paid for out of pocket in full to the builder. The bank I am dealing with wants to add the amount of the upgrades to the Total sales price. Have any of you experience this before? should I look for another lender ?

I don’t see the benefit of doing this? Including the upgrades will mean that I now will be paying for them long term through my loan correct or am I missing something?

@Mark Herbert thanks for the breakdown but doesn’t the huger sales price have an effect on the property tax ? Also why if a buyer can pay in full for the upgrades what is the benefit of getting it tacked on to the sales price ?

Hey so I am in the process of purchasing my first home it is new construction. I decided to get some upgrades on the property that I already paid out of pocket. The lender is now telling me that “ You can’t pay for selections out of pocket to keep the sales price lower than what you are actually paying for the home to be completed”. With that said they would like to add the price of my upgrades to the sales price of the home. Ultimately dose t this hurt me as a buyer do you guys think I should look for another lender?

@Ceasar Rosas is it not possible to use the one of the loan or grant programs offered through SONYMA similar to how investors use FHA then refi?

@Christopher Phillips whats your opinion on the FHA\203K loan for investors, would you consider this over leveraging? would you suggest a user not invest in distressed properties until they have the cash reserves to cover the repairs? what do you believe to be the best strategy for investing in distressed properties?

@Kedian Jimenez Congrats on closing on you first property!!! how is the rehab coming along? From your profile I see that you started off wholesaling how has your experience been with that in the New York area? I am still looking at how i will break into the industry thinking about doing a house hack. This particular property how did you finance it if you don' t mind me asking ? cash reserves, conventional, FHA private or hard money?

Congrats @John Hickey. The magic of hard work and that appreciation !!! This is my first time reading of your experience with this property were you able to complete the 80K in repairs ? I know you stated you purchased with a FHA was that in conjunction with a 203K loan?

@Antoine Martel  Thanks for the feedback. 

@Account Closed mind  going over a buy and hold situation with me?  what was the purchase price of the property  and the amount of repairs needed for these properties and their potential income ?