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Old 02-05-2017, 03:39 PM   #3526
AK87
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Re: Ask me about real estate investing

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Originally Posted by domer2 View Post
Alright so I have a Loan Estimate from Citibank on an investment property, 7/1 ARM at 3.875% with 25% down. I've spoken with 3 brokers since then, and all of them told me they couldn't come close to it, and the third guy said they ****ed up my offer and will be losing money on it.

My question is, let's assume they ****ed up, is the loan estimate binding? Do they have to eat the cost? Or will they screw me over in the loan process?

I have a flexible closing date, so I'm not overly concerned about delays.

edit: I've already paid them $679 for the appraisal, credit check, document fee, and flood cert.
It's not binding until they lock in your rate. They might honor the pricing but are under no obligation to do so.
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Old 02-05-2017, 04:22 PM   #3527
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Re: Ask me about real estate investing

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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?
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Old 02-05-2017, 04:35 PM   #3528
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Re: Ask me about real estate investing

My understanding is the rate isn't able to be locked until a property has been identified
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Old 02-05-2017, 04:56 PM   #3529
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Re: Ask me about real estate investing

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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
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Old 02-05-2017, 04:58 PM   #3530
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Re: Ask me about real estate investing

Should be good then. You can always call the lender and confirm.
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Old 02-05-2017, 09:36 PM   #3531
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Re: Ask me about real estate investing

so if trump scraps CFPB, lonnie deals are back in play right?
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Old 02-10-2017, 07:09 PM   #3532
AK87
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Re: Ask me about real estate investing

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I'm under contract on a property, with a closing date
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.
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Old 02-14-2017, 12:02 PM   #3533
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Re: Ask me about real estate investing

Thoughts in this market about a possible investment in residential real estate versus commercial property or warehouse in terms of long term appreciation.
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Old 02-15-2017, 05:36 AM   #3534
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Re: Ask me about real estate investing

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.
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Old 02-22-2017, 03:49 PM   #3535
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Re: Ask me about real estate investing

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so if trump scraps CFPB, lonnie deals are back in play right?
Anyone smarter than me know this answer?
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Old 02-27-2017, 11:50 PM   #3536
LVpokerPRO
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Re: Ask me about real estate investing

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.
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Old 02-28-2017, 12:37 AM   #3537
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Re: Ask me about real estate investing

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Originally Posted by LVpokerPRO View Post
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.
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Old 02-28-2017, 10:02 PM   #3538
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Re: Ask me about real estate investing

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Originally Posted by LVpokerPRO View Post
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.
Yeah check out how much PMI is on your loan. Prob worth it to put 20% down. anything over 80% LTV needs PMI.
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Old 03-01-2017, 10:58 AM   #3539
Mihkel05
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Re: Ask me about real estate investing

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Originally Posted by xnbomb View Post
Anyone smarter than me know this answer?
Could you give some more background on this affects lonnie deals?

Quote:
Originally Posted by LVpokerPRO View Post
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.
Not really relevant to your question. But that is a lot of house at your income level. You may want to reconsider.
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Old 03-01-2017, 11:34 AM   #3540
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Re: Ask me about real estate investing

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Originally Posted by jeffg576 View Post
Thoughts in this market about a possible investment in residential real estate versus commercial property or warehouse in terms of long term appreciation.
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.)
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Old 03-01-2017, 02:56 PM   #3541
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Re: Ask me about real estate investing

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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.
I save extremely well and got lucky with bitcoins
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Old 03-03-2017, 09:40 PM   #3542
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Re: Ask me about real estate investing

Thoughts on woodlots and maple farms ?
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Old 03-03-2017, 10:24 PM   #3543
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Re: Ask me about real estate investing

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Originally Posted by Mihkel05 View Post
Could you give some more background on this affects lonnie deals?
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.
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Old 03-05-2017, 08:31 AM   #3544
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Re: Ask me about real estate investing

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I save extremely well and got lucky with bitcoins
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.

Quote:
Originally Posted by ymmv View Post
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.
Thanks.
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Old 03-07-2017, 04:58 PM   #3545
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Re: Ask me about real estate investing

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!
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Old 03-07-2017, 07:24 PM   #3546
thaibargirl8
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Re: Ask me about real estate investing

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.
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Old 03-07-2017, 09:39 PM   #3547
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Re: Ask me about real estate investing

Quote:
Originally Posted by thaibargirl8 View Post
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!
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Old 03-08-2017, 11:48 AM   #3548
Mihkel05
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Re: Ask me about real estate investing

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.
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Old 03-16-2017, 07:59 PM   #3549
Andrew Boccia
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Re: Ask me about real estate investing

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.
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Old 03-22-2017, 05:00 PM   #3550
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Re: Ask me about real estate investing

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.
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