All Forum Posts by: Amir Levi

Bank regulations are much tougher nowadays, than what it used to be 5 years ago.

Credit and income is obviously on top of list of rejects.

Having said that, with a 200k free and clear house I think you should be able to get a HELOC for at least $100k.

However, once the bank finds out you are out of the house, it becomes an investment property, listed in sch E of your tax return.

If you can convince your lender that it is still your primary residence, you maybe able to get that HELOC.

Contact your local bank, and give them your tax return and fin statement. You got nothing to lose, and a HELOC to gain.

Amir

Jon Holdman

I thought the rent was 990, but even 950 rent for 92000 price is a good deal in my books.

LL will end up with a cap of over 8%, after 30% exp ratio for tax/ins/rep/maint.

8% cap is not bad at all.

what is the int rate on the 85k loan balance. If it is at 3.5% it make for even a sweeter deal.

Why should one let go of a deal like that?

Buy and hold is what buyer should do here, and wait for inflation to take care of you. In the meantime, enjoy the positive cash flow.

Amir

I am trying to create a contact list of Private money loan brokers.
This list will enable borrowers and lenders to be able to have direct contact with loan brokers.
Please add your contact information to the list, and the area of specialty.

if rent is 895/mo on a 76k investment, you will net 75% (depending on many variables, but that is a good rule of thumb) of the 895 (after tax, ins, maint, repair). So now the net is 670/mo, which is $8040 per year. That is over 10% cap. In other words, if one would pay all cash for this unit, he would get 10% on his money, annually, which is not bad at all.

Of course, there are many other variables to take into account.
Stability of the area and the tenant, condition of the property, and the general neighborhood's economics and employment situation, to name a few.

You can even lower the net to 70% instead of 75%, and still end up with a very good cap rate of just under 10%.

For Southern CA property, that is a very good return.
Do the math, even with 11% down, and 4.5% bank loan you will have a good cash flow (I did not do the math for this part, will leave it to you from here).

Buy it.

Amir

Wallace Zhou, I welcome you, and hope you will contribute to our community.

Hard to make money, nowadays, but do not lose site of the prize, and keep your eyes on the ball (ball, being the market;-)

Amir

I know for fact, that in CA the purpose of the borrower is a major factor. Any consumer loan on any property needs licensing. Once it is a business/investment purpose loan no license is needed as a lender.

Amir

The door is the exit door out of the house.

Amir

"May the government be aware of you".
Sometimes I wonder if it is a prayer, or a curse :-)

Amir

I have lent money in Southern CA as low as 8% and 1 point.
But most of my loans are @ 10% and 2p.

There are too many wealthy foreign investors in this area who are equity rich but would not qualify for a conv. loan.

They come to CA with lots of cash and buy up properties with 100% down. When they need more cash, they find out bank loans are closed to them, so they turn to HMLs.

One might think this would cause an increase in rates. But the truth of the matter is that these borrowers own prime properties and are happy with under 50% LTV, and hence the lower rates/points.

Amir

VA is the only one I can think of, they would lend 100% of CRV.

Amir