All Forum Posts by: Alan Lacey

@Sue K. I agree with ou on break even period, but that is not how long it takes to profit . The time it takes to turn a profit is the time it takes for the return on 15k through increased rent to exceed the return on the $15k fro. Where it is currently. So if in a bank at earning less than 1% should make a profit on that investment quickly.

@Ryan Weimer I would ask to see how they calculated your income and if you are flipping a property how that is impacting your income. There is no concern about Time period over which properties acquired. That you are approve ineligible it means credit qualifies but some other factor does not. My guess if it is t your ratios it is meeting the reserve test for rentals. It should say very clearly in du findings why it is ineligible. If what you are seeing doesn’t ask for full copy. I am honestly it sure how a lo wouldn’t be able to tell you.

@Scott Mac having run about several 1000 of these I can tell you with certainty that this is not the car. The reason for changes for algorithms is changing risk profiles based on loan performance, or simple changes in Fannie Freddie guide lines.

@Joshua Birk be careful on you brrr if buying with a land contract. Females guidelines es will only let you take cash out when refinancing to payoff a land contract. And you will typically need 6 months seasoning from the time you refi land contract to do a cash out loan.

@Eli Rods if you have non se income they should be able to exclude secondary se losses. If not they would go thought return do add back and assign your portion of loss to you. It won't matter what type of lender you go to. If they are doing portfolio loans outside or Fannie Freddie then maybe, but still would be skeptical. I would look for a lender offering a DSCR loan (debt service coverage ratio) there are a few places that buy these need to find a lender signed up with Angel Oak who is a investor that offers this. Rates higher down payment in line, but can get the deal done and refinance it as soon as you 2019 taxes

@Kathy Fettke it is overblown non event. It is t QE it is just a matter of their being so much treasury issuance due to tax cuts that liquidity need to be provided as banks lending against treasury hit their limits. However that isn’t anything that is of real economic concern

@Jake Engle I wouldn’t bother until you are closer to when you can close. I don’t see value of doing it sooner unless you think values are dropping. If area is appreciating I certainly wouldn’t. As for value presuming this is a conventional loan. If so rented or not doesn’t matter as it will all be based on comps.

@Michael Bettencourt at that loan amount with equity it is a bit high hard to say w/o points and fees. Best pricing I would think would be at 5.125 .

I am not sure who would lend you money on a property you sold via land contract as you would no longer technically be the owner of the property. I am not sure what type of financing you could obtain prior to sale that wouldn’t have a due on sale clause. Maybe hard money. Ia m sure there is probably a reason you aren’t looking for a Reno loan to just repair on your own and do a traditional sale.

It would be a violation of due on sale clause in the mortgage. So you can do it, but violation loan terms high is not great. If you are getting a residential loan it is made to individuals. If you want a loan to commercial entity you need to get a commercial loan. Oh just have to assume some risk, or talk to a RE attorney about other structures to provide you protection