All Forum Posts by: Aidan Mulligan

@Christopher Davis

Equity is how much of the house you own. For a $100,000 house with a $60k loan that would be $40k of equity.

Net worth is all of your assets minus all of your liabilities. I haven't read this book so I'm not sure what the numbers are referencing but he probably means that in this house he has $46.5k equity and in his portfolio he has $56.5k of net worth.

If we were just going off this home and nothing else in his bank book he would be +$46.5k equity and -$17k net worth.

As for the how question, it's all about finding the deal. Maybe this homeowner needed to sell. Maybe the house needed some work. Maybe it was foreclosed and the bank wanted it off their books. There's a lot of reasons a house would sell under market value.

13.2 You authorize Landlord to show the Apartment to prospective renters at any time after You or Landlord have given notice of termination.

That's from the lease at the place I currently live.

Be aware that there are maximums that a seller can contribute to buyer closing costs.

Primary Residence at less than 10% down = 3% of sales price contribution

Primary Residence 10%-25% down = 6% of sales price contribution

Primary Residence 25%+ down = 9% of sales price contribution

Investment Property = 2% of sales price contribution

So if you decide to go this route make sure you aren't advertising that you'll cover ALL closing costs because you may not be able to. That being said, I don't imagine it'll help you sell faster. As a regular buyer they're thinking about the big number and the actual property. My 2 cents.

I ran into the same problem and it took a lot of calling around to find someone who will lend. The issue is federal regulation dictates how much a lender can charge in fees compared to the size of the loan. This is called predatory lending. I don't know the exact number but lets say it's 5% max that a lender can collect. In this case 5% on a $100,000 loan would be a $5,000 fee that the bank collects. So as the loan gets smaller, it becomes not worth the banks time. 5% of $37,500 = $1,875. In order to make enough money to make it worth their time they need to charge you a higher fee but the fed stops them from doing that.

Now for the solution. I called every small bank in the town that the property was located. They are more familiar with the area and have an interest in funding their community. Also, they don't receive countless calls about mortgages everyday like the national lenders do so that mortgage broker will be more than happy to work for $1,875. I ended up getting a $39,900 loan on a $49,900 SFR. My credit score is 715 and my DTI is around 28%.

For "as is" it just means that the seller won't make any additional repairs, in reality they will but cross that bridge when you get there. It doesn't mean the property is bad it just means what you see is what you get.

For properties without COO lenders will most likely not give you a conventional loan. In this case you'll need cash or a private lender.

Here's what I get concerned about with this types of property. If you fix it up and sell it, who is going to buy it and for how much. If you fix it up and rent it, how much are you going to spend every year repairing stuff that your D class tenants broke.

Tim, I'm curious as to what a bridge plank foundation is. I've never come across one and I'd like to know how to recognize one if I ever do.

Generally,

• Quit claim is the seller handing over any interest that they may or may not have in the property with no guarantees whatsoever.
• Special Warranty is the seller handing over any interest that they have with a guarantee that there was no issues during the time they held the property i.e. liens or the such.
• General warranty is the seller handing over any interest that they have with the guarantee for the life of the property including before they originally took possession.
• Release is when the lender has received all payments and has sent the title to the home owner. So after you pay off your mortgage a lender will issue a release.
• Mortgage Assignment is when the original lender sells your debt to someone else.

That's my basic understanding. If you're worried about a property with a lot of different deed transfers I'd suggest talking with a real estate lawyer.

Forgot to mention this is Charlotte, NC