All Forum Posts by: Carrianne Mucho

Originally posted by @Chris Mason:

@Carrianne Mucho,

Heh, "Supreme Lending" is on that list you posted. Have they ever tried to recruit you? I laughed when I heard the company name. I had no idea they could manage to be such a large operation with that company name.

Wow, "George Mason Mortgage" is on there too. I could answer the phone with "Mason Mortgage, this is Mr Mason."

LOL.  No, but I did get a call from Movement Mortgage. that name called to mind some other movements...  Did you check out the sort feature?  It was enlightening to see some of the stats for both large servicing players and local companies trying to grow. 

Mason Mtg!  :D  Do it! 

@Akash Sky A bank is a direct lender. There are other lenders (like mine) that don't sound like banks but they actually are direct lenders.  Both banks and lenders make loans. 

A mortgage broker, on the other hand, does not lend money "directly," they don't make loans.  They are like... a shopper who matches you with a lender and collects a fee for their services.  Sort of like how a Realtor finds you a home but they aren't the seller so they don't actually sell the home, they just coordinate the transaction.  

When you get approved, you can ask for a loan estimate - this will allow you to compare what each of them are offering.  

Here is a national ranking of mortgage companies (some are direct, some are brokers) you might find interesting - there are columns that show how long they've been in business and what percentage of business was retail (ie; working directly with clients):  http://www.scotsmanguide.com/Rankings/Top-Lenders-...  

Saul Garcia the programs Jose Guerrero has suggested are for owner occupants. The Homestyle loan does allow investors but again, you will be required to put more down. Maybe you can partner with someone who has more liquid assets until you build up your reserves? Maybe we didn't get the full picture here but I'd suggest you have a bit of a safety net. Leverage can be a beautiful thing in real estate but those mean old bankers are trying to keep you from over-leveraging and putting yourself at risk.

With good credit, and reserves, you may be able to go as low as 15% down on investment property but, the rate will be higher than on 80% LTV and there will be mortgage insurance. Regarding your question, I suppose you can tell them whatever you want, but A) you will have to convince them that you are really moving in witching 30 days of closing B) you must sign an affidavit stating that will be your primary residence. If you don't move and your file/property is audited, you could be charged with mortgage fraud. Why not just find a place you like and make your current residence the rental?

@Steven Ellis @Wesley Raye, What @Curtis Gabhart meant was that if you live there for 2 of the most recent 5 years AND the property increases in value, when you sell it, as a single person you would not have to pay capital gains or income taxes on up to $250,000 of profit.  If you are married, you each get a $250,000 allowance (exemption) so if you are fortunate to make a $500,000 profit on your investment and want to "cash out," you can do this without paying income taxes.  

Disclaimer - I am neither a tax adviser nor accountant.  Please consult your CPA

So Wesley, if you sell in then next 3 years, you qualify for the exemption.  If you wait longer to sell, you will likely want to do a 1031 exchange.  

@Fernando E. - Congrats on taking the first step toward your first investment (researching markets)!  I think with your ideal budget you will find lots of opportunities in the Sacramento area.  Especially if you are planning to have a manager anyway.  Professionally managed or self managed, I think it is a good idea to select a market that is drive-able so you can still easily check on the property from time to time.  With your budget, some of the neighborhoods with the best appreciation prospects right now include Natomas (proximity to downtown but more affordable, relatively limited supply still since there was a building moratorium which only recently expired) and Elk Grove (proximate and commutable to the Bay Area).  As an added plus, many of the homes in these areas are newer and would require little in the way of maintenance.  There are many other good A & B neighborhoods depending on how far north you want to search and if your goals are cash flow, or if you are okay with break even and hoping for appreciation.  

Also, glad to see you talked with a lender before starting your search!  So many people seem to miss this step.  Kudos and good luck in your investing adventures!  

@Thanh Nguyen - check out http://www.city-data.com/ Some of the data is a bit dated but there is lots of useful information including housing price and volume trends, median income and education, etc.  

@Michael You my focus is single family so I cannot provide alot of detail about MF, but rents have increased significantly here over the past 2 years especially.  Vacancies fill quickly too.  There is a new apartment complex under construction in Rocklin which will rent up to $2700 for a 2 bedroom just to give you an idea.  This is in a B area of Rocklin which is an A area overall.    

http://www.garnetcreekapts.com/rocklin/garnet-cree...

Originally posted by @Thanh Nguyen:

Hello, my name is Thanh (Pronounced as Tawn) and I am a new member to the BP community and also new to real estate investing.

I graduated from UC Davis with a Managerial Economics major and currently working full-time as an Engineering Project Manager in Napa. Similar to many REIs here on BP, I want to find my financial freedom through real estate investing. My mission is to invest in highly appreciating single-family homes by researching foreclosures, borrowing from banks and sellers, holding rental properties from five to ten years, and obtaining tax leverage through depreciation. My short-term goal (1 year) is to buy my first rental property deal with positive cash flow by June 2017 in Sacramento/Elk Grove areas.

I am seeking for mentors, partners, and friendships from BP community. I have experience in project management and proficient in administrative duties. If I can assist with your RE business, please let me know as it will be a great opportunity for me to learn more about the industry.

Welcome Thanh! Your studies in Economics will serve you well in REI. It sounds like you have figured out the beauty of leverage and how it makes real estate a superior investment strategy. Elk Grove is a good area with very positive continued growth prospects and there are many newer neighborhoods where you can purchase an SFR that will need minimal maintenance for a very long time. I've seen some successful value-adds here too. I have an extensive background in various aspects of real estate (especially financing, valuation, and property tax) and would be happy to help if you have questions and would like to connect.

Be sure to make use of keywords by entering them under alerts in your profile.  I like to use words like Sacramento, renovation loan, and the names of cities I follow.  You will receive notices when people in the forums are discussing your favorite topics! 

@Michael You, first of all, cool last name!  Second, welcome back to NorCal.  I am a SoCal girl who relocated to the Sacramento area in 2000 and although I do miss some things about SoCal, this area has so much to offer including more affordable housing prices! 

The California Association of Realtors recently published their affordability statistics and it was amazing to see the massive difference in affordability between Bay Area and Sacramento and Placer Counties. 

Personally, I prefer investments which are drivable.  Even with a property manager, I like the idea of being able to check it out in person any day of the week.  Since you're considering Sacramento you might like to read this: 

http://www.sacbee.com/news/business/real-estate-news/article117952053.html Perhaps a wee bit optimistic, but relevant data to consider as you narrow your options. 

Best wishes for continued success wherever you decide to invest!