All Forum Posts by: Catherine Ding
Catherine Ding has started 9 posts and replied 42 times.
Post: Looking for general contractor and property management referrals in Cleveland
- New to Real Estate
- Los Angeles
- Posts 43
- Votes 41
@Nicholas L. @Bob S. Thank you for taking the time to respond. My husband has family in Cleveland but they are not investors. We normally go once a year during Thanksgiving but I will probably not be able to make any trips in the near future as we are expecting our first baby soon. I also know of other investors who do invest OOS including Columbus/Cleveland with success and have asked them for referrals. I thought it wouldn't hurt to ask here as well. I specifically asked about 44102 because the property I'm under contract on is in this zip code -- not sitting here "looking at zip codes" online lol. I don't know why you both immediately assume the worst of my commitment to investing OOS by asking for some referrals online. I am aware more due diligence is needed being OOS and am prepared to do so, and I am also not chasing cashflow in bad areas.
Post: Looking for general contractor and property management referrals in Cleveland
- New to Real Estate
- Los Angeles
- Posts 43
- Votes 41
Question in the title! I'm OOS so looking for reliable contractors/property managers that will service 44102.
So far I've talked to JAMM Property Management (anyone use them before?) but no general contractor contacts yet. Thanks!
Post: MTR property management companies
- New to Real Estate
- Los Angeles
- Posts 43
- Votes 41
Quote from @Nathan Gesner:
Quote from @Catherine Ding:
In the eyes of the law, there are two types of rentals: short-term and long-term. Anything rented for more than 30 days is a long-term rental. You should follow the same laws, advertise on the same sites (plus maybe a couple extra), use a written lease, collect a deposit, etc.
Make sure you use a property manager that understands this. Far too many people treat their month-to-month rental (often referred to as MTR) more like a short-term rental and that's a great way to get into hot water.
I understand that legally it is the same thing, but MTR requires more attention and since I'm OOS, I need someone to help me furnish the place as well. I spoke one STR/MTR management company so far and they told me they do not do LTR, which is why I specified the distinction between the two in my question. Thanks!
Post: MTR property management companies
- New to Real Estate
- Los Angeles
- Posts 43
- Votes 41
Hi,
I am an OOS investor considering doing MTR in Columbus, Ohio. I don’t have a property yet but am looking at options. Since I’ll be long-distance, I’m looking for companies that provide full service (even better if they also manage LTR but not a must). Any recommendations would be appreciated! Thank you!
Post: Delayed financing - all cash offer then refi immediately?
- New to Real Estate
- Los Angeles
- Posts 43
- Votes 41
Thank you everyone for all your responses and feedback! It's been really helpful. We actually decided not to go through with this particular deal so won't be needing to do this anymore, but still helpful to know for the future
Post: Delayed financing - all cash offer then refi immediately?
- New to Real Estate
- Los Angeles
- Posts 43
- Votes 41
Quote from @Drew Sygit:
Why not ask the seller to allow you to switch to buying with mortgage and avoid all this?
You'll also get a better interest rate.
Post: Delayed financing - all cash offer then refi immediately?
- New to Real Estate
- Los Angeles
- Posts 43
- Votes 41
Quote from @Andrew S.:
Quote from @Matthew Crivelli:
Quote from @Catherine Ding:
Hi BP!
Has anyone offered all cash then immediately refinanced to get the cash out? I am planning on doing all cash on an offer to make it more competitive and then getting a mortgage immediately after, but I was advised against doing this by a lender. He said that rates for cash out refi would be higher and you can only take out 80% of purchase price, not the ARV. I would be ok with only being able to take out up to 80% of purchase price, but I'm just worried about having to get a much higher interest rate. Anyone have any insights or experience with this? Thanks!
I would shop around, maybe the LO you're dealing with is inexperienced and is mis communicating or they may just have odd lending practices?
This! I have done many Delayed Financing deals and I never encountered a higher interest rate. Since you have 6 months to complete this process (this allows time for rehab, if desired), of course the interest rate may fluctuate a little bit, depending on market conditions, but there is not an intrinsic "1-2% higher" that I'm aware of.
I should clarify - I'm planning on getting conventional loan. Does this still apply? I had been told you can get the same interest rate if it's DSCR but not conventional
Post: Delayed financing - all cash offer then refi immediately?
- New to Real Estate
- Los Angeles
- Posts 43
- Votes 41
Quote from @Nicholas L.:
just curious if you'll share more about this purchase. i think you had posted in another thread about starting out of state, and i'm curious where you chose.
are you talking to lenders already? in my experience the longer you wait, the better terms you'll get - after 90 days more options, after 6 months more options, etc. there are also fewer options for loans under 100K. i am refinancing a hard money loan into a DSCR loan right now and i had to wait 90 days to get the terms i wanted.
sent you a PM!
Post: Delayed financing - all cash offer then refi immediately?
- New to Real Estate
- Los Angeles
- Posts 43
- Votes 41
Quote from @AJ Exner:
Quote from @Catherine Ding:
Hi BP!
Has anyone offered all cash then immediately refinanced to get the cash out? I am planning on doing all cash on an offer to make it more competitive and then getting a mortgage immediately after, but I was advised against doing this by a lender. He said that rates for cash out refi would be higher and you can only take out 80% of purchase price, not the ARV. I would be ok with only being able to take out up to 80% of purchase price, but I'm just worried about having to get a much higher interest rate. Anyone have any insights or experience with this? Thanks!
Hey Catherine,
We classify it as a 'Delayed Purchase' and set it at 80% of purchase price.
So if there is built in equity in the property, you would be missing out on it because of a presumed prepayment penalty, but its a great way to leverage the bargaining power of cash while still maintaining capital to buy multiples at a time.
Would be happy to help if you would like to take a look at what you would qualify for.
Thank you for your insight. My biggest question is -- are the rates higher for "delayed purchase" or would it be the same as a regular purchase? I feel like I am getting differing answers about this from different lenders I ask. Thanks!
Post: Delayed financing - all cash offer then refi immediately?
- New to Real Estate
- Los Angeles
- Posts 43
- Votes 41
Quote from @Melanie P.:
No, the term of art is "cash out refi" because it matches a box on a form they have to fill out. The rates are not that much higher maybe 1-2%. But if you can get the purchase money loan done prior to closing try to do so.
Thanks for your insight. 1-2% is quite significant actually... Also what is the benefit of getting the purchase money loan done prior to closing?