All Forum Posts by: Jamie Atkinson

Intriguing option, but my bank is old school and I'm skeptical they would be on board with this new methodology this late in the game.  Something to explore. 

My big question is, why would a lender be so cagey about this? What are the options if/when the deadline is missed? 

Background: Currently doing a Fannie REFI on two duplexes (originally purchased 2013 at 5%).  Locked in at 4.25% for a no-cost refi.  Idea is/was to lower my P&I and improve cash flow, etc... 

Closing date next week.  Bank requested for me to set up my notary for Friday.  I live overseas, so that means setting up an appointment at the embassy (literally the only place I can go for a U.S. notary nearby).  Great.  Done it a bunch of times, no problem.  

Along comes Covid.  

Now, I'm being told that embassy services may or may not be available for non-essential services.  I'm plugged into the situation (my wife and I with State Dept.).  Bottom line, a good chance those services will not be available and I could miss my closing date (notarize documents Friday and Fedex back to the States.) Moreover, the whole country is in forced quarantine, with limited mobility.  Guidance changes everyday (more restrictions and closures).  

 Loan officer says, 'We don’t want to miss the closing date as the rate market for investment properties is not feasible. The existing rate can not be extended.'

What does that even mean?! My understanding is/was that on Fannie Refis, the rate lock is essentially a lose-lose scenario for the borrower.  In other words, if the deadline is missed and the rate goes up a 1/4 point, that's the prevailing rate for the new loan.  If deadline is missed and rate goes down, it stays at the previous lock.  Obviously, rates are trending downward, and I'm not trying to game the situation.  I'm more than happy to move ahead at the agreed-upon terms.  I just don't like the tone of the conversation, which implies that I'd better figure out a way to get this done, or else.  I've sent a couple emails basically saying, 'what are the next steps if this doesn't happen?' and have yet to get a response.  

What happens if I miss my deadline? I'm frustrated with the lender and part of me wants to say, the heck with it and just not do the refi.  What are my options?

@Colton Looper, welcome! I think you will love NWA.  There are lots of knowledgeable and nice folks on here.  I don't see a lot of triplexes, but they do exist.  Where in NWA are you focusing on?

Welcome Joshua!

@Sterling Chapman

Exactly. I’m not condoning the illegal drug use, but as a landlord, you want happy tenants paying full rents, on time, no vacancies.

I’d be more concerned with late rent payments.

@Sterling Chapman

This is more my style, demeanor, dealing with this kind of situation.

No need to escalate, but at the same time, a discussion is warranted. Be straightforward, calm, rational, and give folks a path to compliance and a mutually beneficial solution.

The end goal should be two harmonious, ‘good’ tenants. A lot of good, hard working morally strong Americans smoke marijuana. I would have a discreet conversation that addresses two things.

1. Neighbor has a right to not be around marijuana smoke, and if that right is violated, there will be consequences per lease agreement.

2. Since smoking is prohibited in unit, any costs to remedy that situation will fall directly on the tenant. And, to this end, when notice is given, landlord will do a walkthrough to determine the smoking status.

I really like the ‘nice guy’ approach of telling them, ‘hey, I wanted to bring this to your attention...’ that sets a tone of cooperation in my view.

Sounds great! Wish I could make it.  

My partner and I will be in town 11-16 November if anyone wants to grab a beer or coffee.  

Very useful! Thanks for sharing.

Following this thread.  Looking for some insights from current investors in this market.  What are the anchors? Job growth? Vacancy rates? Stable market?

Input is kindly appreciated.  Cheers!

That'd be great!