It's not binding until they lock in your rate. They might honor the pricing but are under no obligation to do so.

Rate is locked until mid-March (a few days after my closing), and my application process has already begun.

So is that ballgame? I have the rate?

Or am I still at the whim of Joe Q. Underwriter purposefully slowing down the application?

My understanding is the rate isn't able to be locked until a property has been identified

I'm under contract on a property, with a closing date

Should be good then. You can always call the lender and confirm.

so if trump scraps CFPB, lonnie deals are back in play right?

Correct. You are good. As long as you don't do anything to delay closing, you will be fine. If lender makes an error and has to push back settlement, they should cover the costs.

Thoughts in this market about a possible investment in residential real estate versus commercial property or warehouse in terms of long term appreciation.

All should be negative real.

If you believe domestic manufacturing will see a boost under new economic policy, warehousing outside of ports could see a rise in cost. Conversely limitation of imports would have the negative effect (but in different locales, since people aren't gonna stop consuming widgets and waggles). Neither of these are long term appreciation. Structures depreciate, land appreciates.

Obviously location is the most important aspect as well.

Anyone smarter than me know this answer?

Thinking of buying a house around $275-300k sometime in the near future 1-2 years. How big of a difference is it putting 20% down compared to 10 or 15? Credit score 790-800, had a consistent job for 10 years of around 50-60k.

I think I could possibly come up with the 20%, but then I dunno how much that would leave me with buying appliances and modernizing it how I want.

Would be a first time home buyer so sorry if this is extremely noobish to ask.

At 20% you don't pay mortgage insurance. Don't forget closing costs though when factoring in your down payment.

Yeah check out how much PMI is on your loan. Prob worth it to put 20% down. anything over 80% LTV needs PMI.

Could you give some more background on this affects lonnie deals?

Not really relevant to your question. But that is a lot of house at your income level. You may want to reconsider.

IMO, residential is the new commercial since more people are and will be working from home. There are tons of partially empty or vacant commercial buildings in every market, so you might be able to find a deal. However, unless you are focusing on incubation spaces and daily rentals, it's probably not worth it (except if you need the tax breaks.)

I save extremely well and got lucky with bitcoins

Thoughts on woodlots and maple farms ?

my understanding is that when CFPB was instituted back in like 2011, it started regulating who could give out loans and the terms of those, which basically killed the concept of lonnie deals for small-time investors.

Oh. Sounds great then!

Just didn't want you to end up in a situation where you're approved for a loan and then find yourself stuck trying to pay it off with an absurd % of income.

Thanks.

Hi guys,

Any ideas on how to leverage Capx/Furniture costs on a rental property purchase?

Let's assume $50K in capx/furniture per property for this post (most of the $50K is furniture).

I am looking for some creative thinking on how to get additional leverage for that $50K besides doing a typical 12-18mo bridge loan.

Is there any way to include these estimated costs into a conventional loan on the property? My lender says no, seeing if anyone has had any success?

Another idea: perhaps contact seller and offer $50K above sale price in exchange for them writing $50K check to us personally outside (and after) escrow? Is this illegal? Maybe add an extra 10% ($5,000 in this example) as incentive for seller to be willing to do this (assuming not illegal, just for the hassle).

Any other ideas?

We actually have the $50K but the idea here is to find creative leverage to improve our ROE (Return on Equity) stat.

Thanks!

Hi Malkas,

The maximum seller credit for a conventional loan is 3 percent of the sales price. It would be illegal to have them write you a 50 thousand dollar check outside of closing. There are ways to roll in renovation costs to a conventional loan, but I do not know if furniture costs would be allowed.

Hi,

These are all $600K-800K homes so 3% isn't bad - can you explain how that would work and how you would approach the seller about that during negotiations?

Thx!

https://mymortgageinsider.com/seller...da-loans-7355/

What you are trying to do is clearly illegal. You should discuss this with your agent and they can clear this up for you.

Man, 50K for furniture.

Anyway assuming the 50K for furniture was GTO your best bet is to approach the seller and have them hold a second note for 50K, with a personal guarantee.
Explain that you need the leverage on your inventory to make it work. This will work for them because the collateral they have is better than the furniture, it would be on the net equity in the home, and there is recourse to you in the case of a default.
The 50K would be credited to you on the HUD and could be disclosed to everyone.

There may be some consumer regulation I am overlooking, most of our stuff is purchased with commercial financing which is a lot more flexible, but I think you can do an 80+5 piggyback here.

PM me to chat more if you like.

I have a not so bright buddy who called me if I might be interested in buying his condo. He owes 24k left on the original 40k. He tells me he's on a land contract @10%. He also says he can't sell it because there's no association, so the bank won't give anyone a loan for it. (dunno how true this is) So it sounds like any purchase needs to be a cash deal.

With some work the place should rent from $800-$900

I'm not really super interested in buying and renting it right now as I have my money tied up in what I feel is more profitable spots. Buuut, would it be a win win if I told him I'd buy out the 24k land contract @10% and make it 8%?

What really would I have to lose, besides a friend :-). If he defaults, I get the place super cheap, and if he doesn't, I'm making lock 8% on 24k. That's a pretty good rate for not having to do jack ****. The whole friend thing is the only thing holding be back, would be pretty hard taking his house.