All Forum Posts by: Andrew Postell

@Jackilyn De Castro buying a condo is a little trickier than a normal Single Family Residence (SFR). A condo will have a monthly Condo Owner Association (COA) Fee which will eat into your cash flow. Just make sure you are including that figure in your calculations. 2nd, if you need financing you really need to speak with your Loan Officer as each COA is subject to approval. Meaning you won't get a loan unless the COA is approved. This may also hinder you if you ever try to sell the condo. So even if you are buying with cash, check with a good lender to see if they will lend on it so that if someone ever wants to buy it from you that you aren't only limiting yourself to only cash buyers. 3rd a condo's association should be reviewed for financial stability to ensure they are solvent. If they aren't solvent then that COA fee will go up in the future and it will eat into your profit even further. And 4th, make sure that the condo association even ALLOWS you to rent. Don't take the word of the seller on this. Make sure you get a copy of the bylaws for the association and review them yourself. Their may be some clause in there that you don't like....which might be the real reason why the seller is selling the property. Hope this helps!

@David Pascual I have been lending for 7 years. I don't know everything but I have not had any of my lenders use this clause. I have had other people say, "I knew someone that had it happen" but as I've tried to inquire about these incidents it always seems that it's never happened. My customers buy in their personal name and switch the deed over after closing. These are customers who use conventional loans. We do it each and every time. Portfolio loans allow you to use the LLC on deed even at closing. So if there is a real concern for you then always go portfolio. Remember, the bank doesn't want your property. They want their interest on the loan. As long as you pay on time I've never heard of a bank caring who's on title.

@Paul I. that is true about Jumbo loans.  I have a feeling that your refinance rates will likely be about the same as your purchase rates.  Do you mind me asking which bank offered the 10% down on a Jumbo?  Was it a profession specific loan - meaning did you have to be a doctor or something to qualify for it?  Or did they wrap a 2nd mortgage in there to make it be 10% down?

@David Zachery if you are active in the investment would I would highly recommend having a HELOC if possible. Even if you don't use the HELOC you may wish you had it in the near future. To answer your questions directly a HELOC would be a lower cost option. HELOC's usually cost between $500-$1000 depending on the bank to setup. Then you can use it over and over again for about 10 years. A Hard Money loan will normally charges you a point up front and a point when you close it. The HELOC may not be able to tap all your equity in your home though. So if you need a large sum you might be forced to use hard money anyway. Also a HELOC takes about 45 days to setup. If you need money right now for this deal hard money might be your only choice again. You can certainly see the reasons to have a HELOC in the future even if it may not be an option right now. Hope this helps!

@William Groom Check out their website.  Bigger Pockets doesn't allow me to post it here but the company is based out of Arizona if that helps you search for them.  It might be good to contact them to do a research call.  

@David M. most investors want to buy a property at 70% of the appraised value of the property.  Remember that if you are paying market rate for a property then you are actually paying OVER market rate with closing costs.  If you were planning on selling your property then you have closing costs again AND you have to pay an realtor who would be representing a potential buyer (not to mention listing fees, etc.)  So paying market rate is not what we want to do with a property.  Buying a property under value is pretty hard in today's market and that's why we also look for distressed properties.  If we can buy a home that needs work it's a more likely scenario that the seller would be motivated.  Hope this helps.

@Taber Roberts While the lot does have some value most of the value from the property comes from the home.  Based on your description it appears you have owned the home for a while and may have equity in the property.  If you don't have any equity in the property the lender could have a problem with it.  I would certainly consult a title company on the proper procedures at this point.  While I have done this on multiple occasions it has been several years.

@William Groom have not done business with them.  Have they offered you anything specific?

@Taber Roberts it is possible to split the "extra lot" off even with a mortgage.  You will have to survey it off and work with a title company to make the split so that you have a deed, etc. and most title companies will understand what you are trying to accomplish and able to perform.  The last time I participated in one of these in Georgia it cost about $1000 to do it.  Hope this helps!

@George Silva if the property is your primary home then the 203k could be an option.  However, if it is an investment property then the 203k is NOT and option.  For an investment property you can do a conventional "Homestyle" loan but most investors do not like this option.  Most of us use hard money or a portfolio loan to buy and renovate and then dependant on your end goal with the home you may refinance out of the renovation/hard money loan or just sell it for your flip.  Private message me for more information.  Thanks!