All Forum Posts by: Caroline Gerardo

You say you are doing zero work or improvements. How are you showing scope of work to be completed? There is no ARV. Doesn't make sense.

Appraisers use comparable sales- a closed sale in past three months with a loan that is similar square footage, room count, location, neighborhood. Tell me the address in a DM and I can give you an AVM (automated appraisal which will be ballpark of what appraiser will write). 

If the market value is $315 why are comps $100 more? 

how did you calculate the ARV?

Hard money doesn't do 100% financing

A loan mod is granted when: the Borrower can qualify and it benefits the trustee of the note. Unless her income is enough to cover the PITI they won't grant a mod and take him off the note. They are happy to be paid in full and loan money out at 7% instead.

Since they broke up and the settlement agreement was to sell, the partner is never going to agree to stay on the mortgage. The partner has no reason to want to be responsible for her forever. Partner can force the sale. 

So it's in CA here's my guesses: It's worth $1,200,000 and they owe $800,000 after selling they net $316,000 she needs $158000 cash to give him. She probably cannot secure a $960000 cash out refinance which will be short on what she needs to pay him. She could bring a new partner in who has the w-2 income and find another $10000 that she needs to pay him off, refinance at today's rates and have partner move in and pay half.

The problem from the start is I advise unmarried people not to buy together without the life commitment. They should have had a very detailed agreement about selling without going through the headache and cost of settlement. 

Does she have a new boyfriend with a job that pays $200000- $2750000 to compensate for her income? (These numbers are made up as I don't know value of the house or her income) The real answer is in these facts: 1. what is value and loan amount 2. what is her net income 3. does she have a replacement partner who can pony up this week? 

So sorry that some people are clueless

 great answer

Small (as in under two million) commercial raw land is not going to be a bank. You may need hard money for 18 months to get your plans, specs, utilities approved then a construction loan. Then a permanent loan. I know of no small construction commercial loans for speculative transaction if you don't have a major tenant. Add the cost in to do three loan transactions over three years to get to operational. Also needed: professional contractor/architect/fencing in Philadelphia/temporary utilities maybe a guard dog and trailer.    Find a seller who will carry the land with 40% down until you get approval from planning department then do construction loan and have your permanent approved by two lenders as terms will change by the time the build is done. 

HELOC is pretty universal in terms. Your FICO is 80% of the rate, as is property type. You need a high FICO. Most are 15 year prime+ a margin. Prime is 8.5 . Max on them is usually 22%. Costs are low. Appraisal is a digital one most the time, and lower than you hope. All your full documentation information (IRS taxes net and bank assets) are input and approval is a program, generally no exceptions to their rules. Bank or Credit Union nominal difference. Non owner HELOC are more difficult to find. You can apply online and rarely speak to a person with a bank.

If it's painted, which is about 90% of the time it's too difficult to sand and the dust is toxic. Do you have scaffolding to be on your back or drywall stilts? This is a messy job. Wear a coverall that has a hood and dispose each day plus the respirator. Fortunately it's cold in OH right now. Test if you can soak it to slop off and scrape with dry wall sharp blade. It's not going to look smooth. After you mess with it you may end up hiring an expert, this is not fun work.

DIY lis pendens after emailing broker? Licensee has higher standard to tell the truth. Ask for money to bow out of the deal. Pants on fire made up a fantasy about income, fully knew about tax lien for a year or more. Ask for $25000 for the defrauding. After he balks (which he will) put name up public and make a complaint to licensing board. Get copy of the tax lien it has the income year noted, I assume he never filed taxes. Get copy of email he sent about rents vs the Airbnb or VRBO listing and income stats. Have your paperwork ready. Don't sign a cancellation, get broker on email trail. 

$600000 will build a 1300 square foot SFR with no pool no ADU. That number is not realistic.

To refinance the property and get cash out it needs to be completed as in everything done and inhabitable, unless you do a short term expensive hard money loan and then refinance later and pay the costs twice. 

If you wanted to refinance the raw land maybe you can get 50% of current as is value not what it will be when completed.

So that's three loans at lets guess $15000 X 3 = $45000 plus interest reserve and carry cost. The hard money loan in the middle might be 4 points so it alone may be $35000

Water is number one problem. Number two is getting fire hazard insurance (get a quote today it will give you chest pains). Curbs, gutters, utilities temporary and permanent, architect plans specs, planning dept asks for changes adding fees, fencing to keep out the stealers, temporary porta potty, and then in a year you get the okay to start. Los Angeles Planning Department not so friendly as we hope. 

Can you qualify full documentation for a construction loan (IRS taxes net for a big loan plus what your housing is today unless you move in with family)?

Get the loan approved and don't lock rate as you have 12 months to get all the pieces lined up and approval from planning.