Happy Member from Oakland, CA (San Francisco Bay Area)

Gloria Lau · 2016-01-03T22:49:38-08:00

Hi Everybody!I came across Bigger Pockets a few years ago and unfortunately did not allocate time to learn more through this community, and sort of forgot about it. Recently, I started listening to the BP Podcast, enjoyed the quality content, remembered reading about Brandon years ago and finally decided that NOW would be the time to take my investing to another level.Though I was originally born and raised in Oakland, CA, the traveller in me decided to move out to Miami, Florida and start my career there. My plan then was to wholesale properties, but when I finally got to Miami, I decided that I was going to sell real estate the old fashioned way. I spent 2+ years as a realtor in South Florida then decided to move back to good old California. I am currently licensed here in Cali and also manage a commercial building in the heart of San Francisco's Financial District.My original goal was to buy (rehab) and hold multifamily properties in the Bay Area since I can self manage and I have a trusted contractor to work with. However, because the prices have risen so much in the neighborhoods that I am willing to invest in and the returns are not as lucrative, I'm considering looking in different states. I would like to talk with investors who would like to partner up on properties inside the Bay Area or in other states. Also, if you live in the area and want to share your expertise on the market, I would be happy to meet. Additionally, if anyone has questions about investing in South Florida or neighborhoods in Oakland, I would be love to share my knowledge as well!!Either way, I am excited to finally be a part of the BP community!Cheers,-Gloria

Jerry Padilla

Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes

10y

@Gloria Lau

Welcome!

BRRR is still a big subject here on B.P. You can still do your original thinking. If you start with private money, after the rehab you can rate and term anytime. There is no seasoning requirement. If you pay cash, you can take out up to the purchase price plus closing costs, in less than 6 months and appraised value after 6 months.

Here is some more info on BRRR Financing;

BRRR....... Buy Rent Rehab Refinance

CASH OUT FINANCING

A cash out refinance is exactly what it sounds like. It is when you refinance your property and pull equity out of a property. The mortgage can either be paid off free and clear or can have enough equity in the property to make it worth refinancing and pulling equity out. Cash out refinances are available on primary and investment properties.

The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgages #1-4. Please see delayed financing for less than 6 months after closing.
On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
On an investment property; A SFR if you have #1-4 mortgages you can pull out up to 75% of the equity and a 2-4 units is up to 70% equity.
On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and 2-4 units 70% LTV) You can take out up to the purchase price plus closing costs on the property.
RATE and TERM REFINANCE - PROPERTY 5-10 If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties #5-10 and do a rate and term refinance with conventional to pull money out on them.

PROPERTIES LISTED FOR SALE
For a rate and term refinance transaction, the borrower must evidence that the listing has been cancelled, and must not have been listed for sale as of the date of the application.
For a cash-out transaction, the borrower must provide evidence that the listing was cancelled at least six months prior to the date of application.
Cash Reserves Required For Other Properties Owned by Investor;
- If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
- If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

DELAYED FINANCING EXCEPTION

Delayed Financing Exception

A cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters:

The new loan amount is not more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV).

1. SFR mortgage #1-4 - 75% LTV
2. 2-4 unit MFR mortgage #1-4 70% LTV
1. SFR mortgage #5-10 -70% LTV
2. 2-4 unit MFR mortgage #5-10 - 65% LTV

The purchase transaction was an arm’s length transaction
The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.
Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan. Funds of gifts are not allowed with investment purchases.
All other cash-out refinance eligibility requirements are met and cash-out pricing is applied. This is allowed on primary residences, second homes and investment properties per cash-out guidelines.
- Ineligible Transactions
  The following transaction types are not eligible as cash-out refinances:
  - The subject property was purchased by the borrower within the six months preceding the application for new financing except if delayed financing guidelines are met.
  - Investor and second home borrowers with 5-10 properties are ineligible for cash-out refinance transactions unless all of the delayed financing guidelines are met.
  - The subject property is currently listed for sale
  - The existing mortgage is a “restructured mortgage”
  - Transactions in which a portion of the proceeds of the refinance is used to pay off the outstanding balance on an installment land contract regardless of the date the installment land
    contract was executed.
  - The new loan amount includes the financing of real estate taxes that are more than 60 days delinquent and an escrow account is not established.

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Jo-Ann LapinPro Member

Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes

10y

Hi Gloria. Welcome to BP. Happy to have you join in.

[email protected]

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J. MartinPro Member

Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes

10y

Hi @Gloria Lau ,

I love Oakland! I live and invest in the East Bay (Oakland and Richmond). So not sure if we're looking at the same neighborhoods (prices have risen a lot everywhere), but boy do they make money! ;) I have a big monthly real estate meetup in San Francisco, although Jan is temporarily on hold due to a potential venue change. (check out my profile/signature).

I don't invest outside of the Bay, but others do. Nothin' like your own back yard though. Come out and say hi to the rest of us sometime! A lot of great people locally, and on BP! :)

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Chris MasonPro Member

Moderator

Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes

10y

Originally posted by @J. Martin:

Hi @Gloria Lau ,

I love Oakland! I live and invest in the East Bay (Oakland and Richmond). So not sure if we're looking at the same neighborhoods (prices have risen a lot everywhere), but boy do they make money! ;) I have a big monthly real estate meetup in San Francisco, although Jan is temporarily on hold due to a potential venue change. (check out my profile/signature).

I don't invest outside of the Bay, but others do. Nothin' like your own back yard though. Come out and say hi to the rest of us sometime! A lot of great people locally, and on BP! :)

Details, please. :)

1 Reply

Chris MasonPro Member

Moderator

Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes

10y

@Gloria Lau

Welcome home! Your husband's name doesn't start with G, does it? :P

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Gloria Lau

OP

Oakland, CA · Member since 2015 · 6 posts · 4 votes

10y

Hi @Chris Mason Thanks for the tip! I will make sure to keep my eye out for the Feb event. I'll send you a PM.

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Happy Member from Oakland, CA (San Francisco Bay Area)

Happy Member from Oakland, CA (San Francisco Bay Area)

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