My banker is currently running some numbers to see if we can get a property we have our eye on and the underwriter has specific questions he wants answered. I'm trying to answer them to appease the underwriter as much as possible
Bold - Underwriters questions
Normal - My answers
Italicized - My thoughts
Who will be the property manager since you are working full time?
I currently manage over 100+ properties and don't feel as though 10 more will be that daunting. < Worst thing they can do is ask me to get another PM right?
Would the owners be willing to finance 25% of the proceeds?
Could you elaborate on the 25% proceeds question? < I'm assuming they're talking about owner financing the downpayment, but the word "proceeds" throws me off, what do you think?
Do you have current contracts on these tenants to see when their lease expires?
We will have the contracts during the due diligence period, following an approval. < Any suggestions?
As to the owners willing to finance 25%, I don't think your underwriter wants them to finance your down payment, I think the underwriter wants you to make the same down payment, but have the owner take a 25% 2nd, so they can lend you less on the first, making their LYV lower. Usually they wouldn't like a second behind them though.
@Wayne Brooks I should've added this but we don't have the down payment for this property so the lender was trying to see if there was enough equity to build the down payment into the purchase price...
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