All Forum Posts by: Becca Summers

In your example: you bought the house for $80,000 it's worth $120,000 to get the equity out you have to do a new loan ( refinance) the property for $120,000 pay off the existing balance of $80,000 and take the $40,000 in cash. You'd pay the fees for financing the loan ether up front or in your interest rate and pay for an appraisal. Some banks will do a desk appraisal but if you need a higher value it will cost you about $450. You'll have a new loan and new payment.

This example would only work if the bank let you do a 100% cash out refinance but most will only allow 90%-75% depending on if you live in the property or not. The bank wants equity left in the property.

You have to refinance to pull out the equity. You could also do a home equity line of credit. If this is a rental or owner occupied the rules are different with how much cash you can pull out. 

What I've missed reading though is how would you finance the next property. If you have no landlord history you'll have to qualify for the new loan with the debt of both homes. ( you can't count income from the rental as income until it's been on your taxes for two years) If that's possiable then making your current home a rental sounds pretty good. Then buying a new home and doing it again.

If not you could move out and rent until the two years are up to qualify for a traditionalmortgage.

You could do a lender paid mortgage insurance program where for a slightly higher rate you can have your lender pay the up front mortgage insurance. I'm not sure but I think that is an owener occipied loan program only. I'm sure a lender could correct me.

I have one in Lehi which is in Utah County about 45 minuets south of Salt Lake. Single family 3 bed 2.5 bath $1375. How close do you want to be I can give you a good understanding of the area.

Yep I've done two and took a 25% referral fee. I've heard CA agents ask for 30%. If you ever need an agent in Utah I'd be happy to help and send a referral fee your way!

A project that I want to do but have no idea how to do it and make money or at least break even. I want to build or buy a large apartment complex where rent can be very affordable but have a nice place. Then every month have classes on how to break the poverty mindset and improve your life. I hate seeing low income being taken advantage of because they've never been taught how to live a better life. I guess I could do classes without the rental but I figure having the rentals would give me access to these type of people when they apply and move in if rents are low enough.

Great! I'm happy to hear education is high on your list. There are many times people come to me saying I want to invest and have no plan past that.

Something I would recomend is figure out what tenant class you want to work with. Search A, B, C and D class rentals and what type of personalities they attract.

For me I do A class which costs me more to start but saves me a head ache with bad tenants. I find my tenants often make good money but need a place for a year because of divorce, job transfer or newly married not sure where they want to put down roots. The turn over for my properties is about 1.5 years but because they keep the property so nice and clean I 'be never had a turn over where I lost money.

I manage my properties myself so I need them to be less matinace so I can keep up on my job as a Realtor. 

Miki, welcome to BP. I think your goals are great and I hope you can do it!! 

What are your plans to get stared? Are you thinking of buying single family homes or multie units and moving in or saving up larger down payment to invest without moving?

A short sell, the bank is getting shorted on what is owed the bank. It benefits the seller so they don't have a foreclosure on their credit. 

Banks have different rules, one I had the bank would only sell it for 95% of appraised value. You save money the worse the condition is on the home.

I've noticed short sells in my market aren't getting approved as often and banks are just forclosing.

@Daria, no the seller does not have to adjust the price to the apprised value.

You have a contract saying you will pay $118,000. If the appraisal comes in at $115,000 then you have three choices coming up with the extra $3,000 or cancel the contract.

You can always ask the seller to come down but there is no where in the contract that says they have to.

1% of $118,000 isn't great but I would be willing to do it to earn a clients trust for future transactions. 

I had a client buy and FSBO where neither party would or could afford to pay me. I had to realise the buyer and wasn't able to help my client and she grossly over paid and runined her chance at negotiating. But she did get the house.

The great thing about a good agent is they can be a natural 3rd party for negotiations. Sadly I've seen it the other way where the agent had only done a few transactions and blew everything out of portion and killed the deal.