All Forum Posts by: Caroline Gerardo

The person needs liquid cash, they have to trust you enough like a marriage, you need detailed agreements in writing. Can you finance the balance? 

What's wrong with it? Give me the address and I can see the roof in real time, and for $20 can hire someone to knock on the door with their cell on video.  What does county say ~ is it red tagged? Run a Clue report. Are they paying for seller's title insurance? Seems suspect that they claim they will have the tenants out when they are still inside. You do not want to deal with evicting squatters. Do you have real comps? Do you have a team to do the rehab? Can you do the work?

A SFR with structural defects might cost $150000 to fix.

The commercial part which I assume is downstairs has to be less than 49% of the square feet and lenders may give a huge haircut to the commercial rents to be able to do a residential qualified loan. 

A commercial loan is probably going to be higher rate and yes will tie you up personally and the business. What income do you show on your IRS returns as net number? - Get your 2023 return filed and into the IRS digitally and don't write off the whole ranch.

New York is a sticky state for lenders, (that's a nice way of saying it), many lenders do not loan in NY- there's that problem.

Your FICO is super low- A co-signer does not fix or make up for the credit which is a huge piece you need for a non-qualified mortgage. Most NonQM want 690+ score. - time heals the score if you pay as agreed, start ticking away at the credit cards with $10 extra before the due date.

Negotiate an extension from the seller. Offer to pay him an increase in the interest rate for 14 months. Don't pay seller late this is important to be able to refinance

Go find a w-2 job today, any job that brings in cash or gig money not uber that wrecks your car. Income fixes the problem in time. What did you do before?

All your income MUST be deposited into one single bank account. Now I don't know if you are a believer in the tomfoollery of these asset protection gurus who have you set up multiple LLC's but, however, that theory of keeping everything in separate vaults does not work with getting a NonQM bank statement loan for example which could be used as income.

You live in the property- owner occupancy also limits you from many commercial or DSCR type loans. You say you live there part time but you have San Carlos as home??? San Carlos there are tech jobs is that why you are there? Can you get a remote job and live somewhere cheaper?

I won't do a loan in NY but you can lean on me for a pep talk, strategy, or free how to fix your credit score. You can do this. Keep the beautiful images of your STR up and looking charming, set up your own free website with videos, photos of activities in the area, lists of restaurants, hiking, historic whatever. You want your own website that you link to pinterest, facebook, any travel sites. I suggest you have your own because we never know if verbo or airbnb change their policies and charge you more.  Maybe get it on more sites.

• Wix: Offers total control over website design, 500 MB of storage and bandwidth, free website templates, and access to the App Market. The free plan also includes a subdomain.
• WordPress.com: easy.
• Weebly: Good for ecommerce websites. It's also good for easy page editing.
• HubSpot: Good for growing businesses.
• Webflow: more tricky to set up.
• Google Sites: Free to build, host, and maintain with a Google or Gmail account.
• Dorik Website Builder: Good for personal websites.
• Strikingly Website Builder: Good for previewing sample sites.
• Yola, Freehostia, Biz.nf, Tumblr, Blogger.

The other option is to sell. 

Walking the line of fraud isn't a good plan and with the seller as trustee if they file BK, divorce, have a judgement it sticks on the property.

Without a social security number and no US credit I known of zero who will give you a HELOC. HELOC's are like credit cards 8.5% start and 22% max.

You have an ITIN number? A cash out refinance for foreign national is 65% loan to value owner occupied. What do you show for income? Two rentals have $800 monthly income after property tax and insurance? 

Not true.

Maybe he is comparing when rates were lower... like 3%

Sure but hard money isn't cheap

I have a new conventional type loan with 1009 income for 12 months. We ask you to get an accountant letter stating the number of employees you have/ the nature of the business. If your FICO is 680 and 10% down to the High Balance Conforming limit in your area. We can use a portion of the proposed rents at market rents for additional income when you provide a lease and deposit the day before closing. This avoids the 3-4 FHA problem with rents not meeting the self sufficiency test. (complicated but here's a long explanation :https://cgbarbeau.blogspot.com/2024/02/fha-self-sufficiency-... ) When a property is higher cost the rents don't cover the PITI for all the units.

DCSR requires 10% down and property rent ready.

You qualified for the FHA loan in 1/2022. Refinancing to conventional and dropping the PMI may help reduce payment which the higher balance might level out my guess is your PMI is about $215 a month. Is the property next door the same square footage and number of units? To be a comparable it needs to be similar and sold with a loan.

No you do not order an appraisal. You will also have to pay for the lender's appraisal and one you pick will not be used. DM me the address I can give you an AVM (automated valuation which is also not used but a starting point). A local realtor can also tell you the general number (what city I can connect you with one who can do this by phone or email).

LLC or Land Trust vesting is never stopping the existing lender from calling the loan, in fact the opposite, it may trigger it. Changing the deed is a SALE, the loan is due on sale. Or what are you planning?

Best practice is to have equity that you can sell if this happens or you are positive your W-2 income, good credit and equity position will allow you to refinance fast to another lender in the future if this happens.