All Forum Posts by: Tingjun Lei

Thanks Greg. I believe if it's a $20MM property, then the buy down should be a lot more. This is based on a 300K SFH, so the buydown isn't that bad. Thanks for your advice!

 Thanks for your suggestion, Steve. I am going to negotiate and see if they can offer better deal. 

Hello all BP Pros,

Want to get your opinions on this. Thanks in advance! I am trying to do cash out of my rental property. It's a single family home at south FL, purchased with all cash, free and clear, rented out. I was trying with one lender who said they can do the cash out at the beginning, but then after reviewing my 2016 tax return, which claim a loss on a K-1, they said they can not due to the debt to income ratio would not qualify (comes to negative..). So I turned to Finance of America Commercial (former B2R) and they said they don't need to check the tax return doc, but only lease agreement. The term sheet they offer is:

-75% LTV

-30 year fixed, rate at 6.88% with $689 to buy down

- 1% of loan amount

- Processing fee: $795

-Attorney closing fee: $500

-Title review fee: $500

-appraisal fee: $660

-$750 closing with LLC

and other regular closing cost.

They also have different buy down options, the lowest rate they can offer is $9500 buy down and rate is down to 5.5% 30 year fixed. I used B2R before when they offered 6% and 30 year fixed without buy down, but they no longer offer this rate. So want to get your opinions about this term sheet. And most importantly, if you have used/known other lender can do this no tax-doc loan with more competitive terms, please feel free to reach out to me, much appreciated! 

Hello all BP Pros,

Want to get your opinions on this. Thanks in advance! I am trying to do cash out of my rental property. It's a single family home at south FL, purchased with all cash, free and clear, rented out. I was trying with one lender who said they can do the cash out at the beginning, but then after reviewing my 2016 tax return, which claim a loss on a K-1, they said they can not due to the debt to income ratio would not qualify (comes to negative..). So I turned to Finance of America Commercial (former B2R) and they said they don't need to check the tax return doc, but only lease agreement. The term sheet they offer is:

-75% LTV

-30 year fixed, rate at 6.88% with $689 to buy down

- 1% of loan amount

- Processing fee: $795

-Attorney closing fee: $500

-Title review fee: $500

-appraisal fee: $660

-$750 closing with LLC

and other regular closing cost. 

They also have different buy down options, the lowest rate they can offer is $9500 buy down and rate is down to 5.5% 30 year fixed. I used B2R before when they offered 6% and 30 year fixed without buy down, but they no longer offer this rate. So want to get your opinions about this term sheet. And most importantly, if you have used/known other lender can do this no tax-doc loan with more competitive terms, please feel free to reach out to me, much appreciated! 

 Thanks Jared. I did have the fence and the gate was locked. But you can easily jump over and unlock the gate by  pulling the gate stick out and put the gate to open..and they can unlock the lock anyway if they have a drill..So the gates/door doesn't really work if they are professional thieves and have the tools..

 Thanks Manolo, but it seems this has to be purchased by the contractor, can the property owner purchase this? Do you know any other type of insurance policy will cover for these personal properties during rehabbing? Thanks. 

 This neighborhood actually is pretty safe..the AC and water heater was stole like a month or 2 after they were installed. So I am thinking it's someone from the construction side stole these stuff, because they actually know the lockbox combo code, and took out the backyard keys from the lockbox..but I don't have any evidence, and this project has been going for a while, so many people know the combo code..I have reported to the police, but I don't think they will follow up and identify who stole them.. I have changed lock box and the front door keys, and took out the rest of the keys. But I am still worried that the AC will be stolen, especially the condenser is outside and they know this property is vacant..

 Thanks Dawn, much appreciated your input! I will definitely consider your suggestions! Based on your experience, do we really need to have the condenser installed to pass the home inspection and appraisal? 

Hello BP pros.

I have a question of how you guys prevent your AC from being stolen in a SFH while rehabbing. I recently installed a brand new AC unit at a rehabbed SFH and it was stolen.. The SFH has code violation, so we are legalizing the addition. It's towards the end of the project, and we need to install an AC and water heater as lay out on the plan to pass the county inspection..So I bought a new AC and water heater and installed them since I was thinking to replace a new AC anyway so I can sell at good price after the rehabbing. I did not think of the AC and water heater will have been stolen since the property is in a good neighbor. Unfortunately, the AC and the water heater were both stolen maybe because the property has been vacant for too long..thank god I haven't put the appliances yet.

Since the addition wall is removed, so the electricity meter was removed also, and we are getting the electricity from an independent electrical source. Therefore, there is no electricity at the house, and I can't install alarm system. I can try to see if I can first get the electricity back to the house and then put alarm system and bought the AC, water heater and appliances. I think the alarm system should prevent these stuff from being stolen again. However, I can't think of innovative ways to prevent the AC condenser from being stolen since it's outside of the house, and these bad guys can still jump over the fence and steal the condenser. 

What do you guys think? Putting an AC condenser cage? I used to put it at the other SFH, but these thieves are still able to break it and stole the AC..Install a wi-fi camera? Or just simply not putting the condenser until closing? I can certainly add a clause such as the AC condenser will be installed at the closing, but I am afraid that the bank appraisal or home inspection won't pass without the AC condenser..I am also thinking not putting the appliances instead I give credits to the buyer. 

Anybody has similar experience and suggestions? Much appreciated!  

They worth 175k and 135k each. I paid all cash. Sorry I can't take high rates and looking for more like 15 years or 30 years mortgage with fix rates. Thanks. PM me if you have good programs.