Underwriting is as much an art as an ability to adapt rules, regulations and applicable law.Loan originators are problem solvers, they need to be able to originate loans within the guidelines and address the bumps that may throw up road blocks and coordinate the entire process.

Now there is a ton of competition from other investors, wall street, and even some retail buyers trying to get a good deal. 70% rule means that you take the future sales price or ARV of the home, then multiply it by .7, then subtract your rehab and carrying costs and this number is your maximum offer to make the deal work.

There are some investors who loan out to owner occupants but the new regulatory rules are making that harder now.

If this is the Wayne G I know, he know the rules too.

In regards to your question concerning FMV percentages and purchase prices, I have to say first and foremost there’s an exception to every rule and this is a business of exceptions but normally how it works is a trade desk pushes out a tape of assets and you would bid on the quality of the tape.

I'll leave this up as long as it stays a discussion about lending options.You've ruled out your main potential source for deals like this: hard money.

A good rule of thumb to determine this is the 50% rule.

HUD constantly changes rules and regs all the time.

Hey Folks,

Just curious what you all use for your 'deciding criteria' on any new deals, or properties that you are re-evaluating mid-process?

The ones I hear/read most often in any investment are:
ROI
COC return
ann...

Get THEIR buying rules and get finding.