All Forum Posts by: Alexander Zurn

@Jonathan Burton I am not exactly sure about the specific question as my knowledge on corporation law is limited. But just a thought: remember that in a 1031 Exchange an equal and like property has to be used as the next property. So if you're selling a gas station, the next property will be a commercial property (I would assume). Not sure how that applies to land/developing on land.

@Jennifer NA if you're considering building I'm assuming you have knowledge or experience with this? Is buying a small multi out of the question?

Both offer pros and cons so you'd be wise to research those. If your desire truly is to build vs buy (multi vs sfh), look into the costs of both. I would recommend leveraging your money in the best way possible. If it will cost you 3.5% (plus closing costs) to buy the right SFH, depending on the price, that sounds pretty good. Do you have the time to do both?

The numbers will most important and, to be honest, defining what you want is crucial.

Good luck

@Zackery Bagby I would recommend educating yourself first and foremost. And you've come to the right place!

Brandon Turner wrote a pick specifically on your question: How to Buy Real Estate With Little To No Money Down. Search the education department on the site.

Next - after you've learned about real estate and how to finance AND Identified the property (a critical step) - look into your states first time home buyer program. A simple goodle search will you take you the Georgia First Time Homebuyer Program and you can explore the programs they have which most likely include a down payment assistance loan that is treated like a 15 yr mortgage. Be sure to include this mortgage payment in your numbers.

Just a few places to start, good luck

@Arthur Means this is a good and important question. I'm sure you could work in an exit clause to the P&S but my understanding to why more wholesalers don't do this is that the seller of the property will question you and likely back out (or at least be suspicious).

If you are new to wholesaling, which I'm assuming you are, I would absolutely do more research on everything involved with it. It can be a difficult process to grasp.

With that said, and to your question, I would get all of your ducks lined up before finding a property, let alone getting it under contract. That may not be wholesaler protocol but it certainly could save you a lot of time and money trying to back out of a deal that you can't afford or don't even want.

Perhaps start with an example project. Determine a property, generate a PDF report through the BP Wholesale Calculator and present it to someone you trust (perhaps a parent, best friend, etc.). Give them a presentation on what you will do for them and how the numbers in your nice & neat report show this. This will get you confortable in selling people. During this process you can build your buyers list by networking at local REI meet ups (this will be the best place) or even on the Bigger Pockets forums!

Wholesaling can be tricky even though is seems like a walk in the park so make sure to do all of your homework.

Good luck!

@KaSaundra Johnson break it down to its simplest form and perhaps consider working backwards (in your mind). So you want a portfolio. Ok, define that? What does that mean? How many houses? Flips, Buy and Hold, Notes? These are things you need to define.

Then realize that it all starts with 1 property, your first. The foundations. In order to get 1 property you'll have to build knowledge and the most important thing will be to educate yourself. Use these forums, podcasts, read books, etc. All the while watching your market (the area you've elected to buy in). As you educate and research, more questions are bound to come. And you'l find answers. On BP or google or another book! It's a lot fun.

Let me or (BP) know if you have any questions. Good luck!

@Jane Kim impeccable timing. I just answered this in another forum. See below then click link to read for yourself. It seems as if you are blood related you should be good! I would read below and click link so you are aware and then speak with your Loan Officer about this directly. Good luck!

"According to HUD 4155.1, Chapter 2 Section B, A non-occupying borrower transaction involves two or more borrowers where one or more of the borrower(s) will not occupy the property as his/her primary residence. When there are two or more borrowers, but one or more will not occupy the property as his/her principal residence, the maximum mortgage is limited to 75% loan-to-value (LTV).

Borrowers should take note of some exceptions to that 75% limit which are based on family-type relationships.

Borrowers are eligible for maximum FHA loan financing for non-occupying borrower situations for FHA loan applicants who are related by blood, marriage, or law. Chapter Two describes these relationships, which include (but may not be limited to) the following:

• spouses
• parents
• children
• siblings
• stepchildren
• aunts-uncles
• nieces-nephews

...and, according to Chapter Two of HUD 4155.1, unrelated individuals who can document evidence of a longstanding, substantial family-type relationship not arising out of the loan transaction."

FHA Loans and Non-Occupying Co-borrowers

@Brad Ernst see below (and website). Explore this further but it would look like you need to go 25% down. I recommend speaking to your LO. Maybe it would better suit your situation to put 5% down with a Conventional product.

"According to HUD 4155.1, Chapter 2 Section B, A non-occupying borrower transaction involves two or more borrowers where one or more of the borrower(s) will not occupy the property as his/her primary residence. When there are two or more borrowers, but one or more will not occupy the property as his/her principal residence, the maximum mortgage is limited to 75% loan-to-value (LTV).

Borrowers should take note of some exceptions to that 75% limit which are based on family-type relationships.

Borrowers are eligible for maximum FHA loan financing for non-occupying borrower situations for FHA loan applicants who are related by blood, marriage, or law. Chapter Two describes these relationships, which include (but may not be limited to) the following:

• spouses
• parents
• children
• siblings
• stepchildren
• aunts-uncles
• nieces-nephews

...and, according to Chapter Two of HUD 4155.1, unrelated individuals who can document evidence of a longstanding, substantial family-type relationship not arising out of the loan transaction."

FHA Loans and Non-Occupying Co-Borrowers

@Cristian Nicolaie who is giving you all of these stips? Have you done the research on the stips? Perhaps they are specific to one lender in which case you should keep shopping around.

The only thing I can take from your post is that maybe the property is not legally a fourplex? I'm not sure. More details would help others as well.

Sorry to not be of more help

@Laura Costello easy answer is no. TRID (TIL RESPA Intergrated Disclosure Act) was set up to specifically stop 1 day disclosures. It came along with the Dodd-Frank to increase regulations lenders must follow in light of 2008. This way the borrower is not caught off guard and has reasonable time to review and comment on the fees/charges/pricing etc.

With a Dodd-Frank repeal looming, it will be interesting to see how this will be effected. I should say for now the easy answer is no.

@Richard Moreno sounds like you've done a good job so far! 

8.4% seems extremely high. What is the rush in getting it refinanced? (other than getting your money back of course). If it can wait, I probably would to avoid a high rate and any sort of ARM (adjustable rate mortgage). It seems great but you just never know how high they can get especially with regulations being cut back in the months to come.

This is what I recommend. Do the math for cashing out now. Ok - you'll get your money back but figure out your monthly payment each month at each rate for the next 5 years. Consider all expenses and see the numbers.

Then I would do the math for holding it another 5-8 months. Figure out your holding costs for those months and, again, consider your expenses with the property's income. You'll also need to determine a healthy interest rate (I would guess 5%) and then work out those monthly payments.

In the end, it will come down to what you want to do (and the math!). Do you need to take the money out now? Do you want the money back? Can you hold it for another half year? Do the math and figure out these questions.

Best of luck!