New to Investing in the Charleston area

Charleston, West Virginia
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New to Investing in the Charleston area

Adam PutmanPro Member
Member since 2021 · 4 posts · 1 vote

Hey Everyone.  My name is Adam and I am looking to get into the Charleston, SC real estate investment community within the next year, and am very excited about it!  I wanted to go head and introduce myself.  A little about me...

I have lived in the Charleston area for about 5 years, and have been working in the food and bev industry ever since (currently as a manager).  I filed for chapter 7 bankruptcy about a year ago to get rid of some old credit card debt from when I was in school that was really hindering my ability to move forward.  I have spent the last year educating myself, rebuilding credit, and putting away money for a down payment.  

My goal...

As I understand it, there is a 2 year seasoning period after a chapter 7 discharge before you can apply for an FHA loan. Which means that I have another year of saving and learning, and I am looking to start putting together my team. It also seems that there is a severe lack of inventory in the Charleston area so waiting would seem to be to my advantage even without the constraints of my loan eligibility (or lack thereof). I am looking to get into a house hack at first. I would prefer a multi family, but not opposed to a single family and renting by room, possibly to other food and bev workers. That is essentially what I am doing now, I just don't own the house. Not too concerned about location at this time as I work from many different locations with my job. Anything from West Ashley to Mt. Pleasant to Summerville would be fine. At this time I am looking to get with a lender to make sure that as soon as my post bankruptcy seasoning has ended, I will be in a good position to get an FHA loan. I have reached out to a couple of banks (including my own) to try to get in contact with someone but have yet to hear back. Also, if anyone has any general advice for me at this point it would be more than welcome.

I am normally one to try to do things on my own, so I thought this would be a great opportunity to break that habit.  I am reaching out for both knowledge and accountability.  Thanks in advance for any help, and please let me know the best way that I could be of help to others!

-Adam

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Gaetano Ciambriello
Lender · Member since 2021 · 277 posts · 150 votes
5y

@Adam Putman @Troy Gandee

Below are the waiting periods for major credit events:

Fannie Mae and Freddie Mac:

Chapter 7 or 11 Bankruptcy:

4 years OR 2 years IF extenuating circumstances.

Chapter 13 Bankruptcy:

2 years from discharge date OR 4 years from dismissal date.

Multiple BK filings:

5 years IF more then one filing within the last 7 years.

Deed in Lieu, Pre-foreclosure sale,

charge off of a mortgage:

4 years OR 2 years IF extenuating circumstances.

Foreclosure:

7 years OR 3 years IF extenuating circumstances, Max LTV is 90%, purchase or rate/term of primary residence ONLY

FHA:

Chapter 7 or 11 Bankruptcy:

2 years from discharge date.

Chapter 13 Bankruptcy:

2 years from discharge date OR 12 months with satisfactory payment history from Court. Manual downgrade required when less then 2 years.

Pre-foreclosure ( short sale):

3 years from the short sale date. The 3 years waiting period begins from THE DATE OF TRANSFER OF TITLE.

Foreclosure:

3 years from the date of transfer of title.

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  • Troy GandeeBusiness Member
    Real Estate Broker · Charleston, SC · Member since 2013 · 795 posts · 454 votes
    5y

    @Adam Putman I think the first step is just what you said. Once a lender can confirm the seasoning period, they should be able to help you figure out a budget or a maximum purchase amount. From there, you can narrow down the field. We use Robert Wade with First Heritage. He's really familiar with investing and gets what we're trying to do. He's also quick. After that, you can start talking to agents about what types of assets. We'd be happy to help you once you're geared up.

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  • Adam PutmanPro Member
    OP
    Member since 2021 · 4 posts · 1 vote
    5y

    @Troy Gandee thanks for the reference. I’ll reach out to Robert. I listen to your podcast and appreciate the insight. I’ll be sure to reach out when I get ready to look for properties.

    1Reply
  • Gaetano Ciambriello
    Lender · Member since 2021 · 277 posts · 150 votes
    5y

    @Adam Putman @Troy Gandee

    Below are the waiting periods for major credit events:

    Fannie Mae and Freddie Mac:

    Chapter 7 or 11 Bankruptcy:

    4 years OR 2 years IF extenuating circumstances.

    Chapter 13 Bankruptcy:

    2 years from discharge date OR 4 years from dismissal date.

    Multiple BK filings:

    5 years IF more then one filing within the last 7 years.

    Deed in Lieu, Pre-foreclosure sale,

    charge off of a mortgage:

    4 years OR 2 years IF extenuating circumstances.

    Foreclosure:

    7 years OR 3 years IF extenuating circumstances, Max LTV is 90%, purchase or rate/term of primary residence ONLY

    FHA:

    Chapter 7 or 11 Bankruptcy:

    2 years from discharge date.

    Chapter 13 Bankruptcy:

    2 years from discharge date OR 12 months with satisfactory payment history from Court. Manual downgrade required when less then 2 years.

    Pre-foreclosure ( short sale):

    3 years from the short sale date. The 3 years waiting period begins from THE DATE OF TRANSFER OF TITLE.

    Foreclosure:

    3 years from the date of transfer of title.

    1Reply
  • Troy GandeeBusiness Member
    Real Estate Broker · Charleston, SC · Member since 2013 · 795 posts · 454 votes
    5y

    Thanks @Gaetano Ciambriello! That's good to know!

    0Reply
  • Adam PutmanPro Member
    OP
    Member since 2021 · 4 posts · 1 vote
    5y

    Thanks for your help @Gaetano Ciambriello!

    0Reply
  • Brent Grenda
    Real Estate Agent · Charleston, SC · Member since 2021 · 1 post · 0 votes
    5y

    Good info all around.  I am a recently licensed sales agent (soon to be investor) in Charleston, and I just happened to be looking up this kind of info for a potential client the other day.  My wife and I have invested in other markets before, and now that we're settling down to make SC our home, were looking to start moving into this market.  Good luck to you Adam, and thanks all!

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