my credit score is 723... but really no activity... plus i have no proven source of income (poker, live cash games only)

i should hire a lawyer to read through the condo fee documents?

If this is getting too personalized for me and not general enough I will start my ownn thread (moderator please PM me if necessary)


so I don't even know how to go about making an offer,,, and he's owner agent, so what kind of closing costs should i be expecting?

Be careful, non-pros cannot net their wins and losses.

according to my father a tax accountant you can make itemized deductions up to but not more than total winnings

yes, they can be fairly restrictive. Its not just the fees but also the obligations or restrictions on common areas. There are many areas you wouldn't think are part of "common". Better to know in advance than to try to negotiate after.

The terminology "30 year fixed" is well known. We pay a part of principal and interest proportionally for 30 years so that loan money will be zero after 360 months of payments. Recent quote is 4.9%.

How about ARM? I heard that ARM morgage requires easy(cheap) payment first 3 years and heavy(expensive) payment from 3 to 30 years. Recent quote is 3.9%.

I will be appreciated if anyone can explain more detailed ARM. Thanks for reading my short English.

Google is your friend.

723 is great for a college student, just make sure that's your score with all 3 bureaus. I imaging verification of income is your only hurdle at this point, and if that's an issue you could get someone to a co-sign.

Aq

im a total real estate noob, and i need help.
im a canadian who wants to buy some american real estate (specifically sacramento area.)
my only income is from poker, and i feel like i might have a hard time getting a mortgage. my gf's parents live in the area and are currently renting.

my plan ( that i havent put much research into yet) is to maybe buy a townhouse, or cheaper home in sacramento and then have them live in it.
i would put down the $ for the down payment, and then they would pay the mortgage. we would have separate mortgages on the property, so if anything ever happened we would all know whats what.
does this sound like a decent plan? i dont really want to exchange any usd-cad right now since the exchange rate is so sht. i figured this might be a good invest with how depressed prices are right now.
thanks for the help!

What do you mean by "we would have separate mortgages on the property"?

not too sure. friend of mine had a mortgage with his gf, but their mortgage was separate from each other so if they broke up it would be easy to split up who if the broke-up.

This doesn't make any sense. If one defaults, what happens? Do they foreclose on half the property?

Hard to imagine this in a residential mortgage. If the mortgages had an equal priority there would need to be an intercreditor agreement, which seems like it would be very costly because they are not common in the residential market. If your name is on the deed, it seems like any lender would want you to sign the note/mortgage even if the obligation were non-recourse to you personally.

I suppose I could imagine some crazy first lien/second lien scenario, but again each lender is going to want everyone on the deed to sign something subordinating their interest to the lender's interest. And it would suck from a borrowers perspective.

I agree, it makes no sense.

You guys finding it hard to get financing for acquiring apartments?
We are looking at deals here in LA. Stuff in semi-hood areas, gross rental income at about 15% of purchase price. Sometimes a little bit higher.

Wondering if any of you have purchased properties with cash to have a better chance at acquiring them, then refinancing later...

financing for investment properties is hard right now. Some banks are making sure you have successful experience managing rental properties.

I buy everything cash then refi. Usually 12 months wait to refi off of appraised value otherwise you can get 50-80% back off of purchase price within 3-6 months. Owner occ is much easier to refi then investment properties.

Also if you buy cash you should be looking to get a minimum 10% cap rate right now on multifamily. 15% gross is not going to get you 10% cap rate.

I have sources who are still lending on multifamily. (I'm not a miracle worker though, the deal has to be strong.) PM me if you're interested and looking to borrow at least $250K.

You think? We are thinking that 1/3 of gross rent would go to expenses leaving us with 10% on our money.

10% was our threshold also for what was an acceptable deal.

its going to cost you more than 33% of gross rents to operate the property. What do you project your holding period will be? Even if its short term, you're risk adjusted return isn't going to get anywhere near 10%. IMO.

I know the industry standard goes up to 45-50%, but a handful of ppl I know aren't in that range. For example, I know someone who has a few properties in Santa Monica, 4-8 unit buildings and his operating expenses + vacancy are in the 25% range. One item to note is they renovated the place about 5 yrs ago.

Spex you mind giving me an example of a higher than 33% expense type property?
Like where the costs went?

What are yr typical net rent % for a 3-4 unit property?

Holding period would be 3-5 yrs.

You should definitely base your projections on the low-cost outliers rather than the industry standard. What could possibly go wrong?

I have this book. Where is the spot w the ridiculous first offer pt?