All Forum Posts by: Cole A.
Cole A. has started 4 posts and replied 54 times.
Post: too many inquiries- bad credit rating?
- Overland Park, KS
- Posts 55
- Votes 12
Originally posted by @Sandhya Gorman:
There seems to be an unspoken rule that if you talk to a lender, you'll do business with them.
Where did you come to that conclusion? A mortgage officer is a sales person...it's a sales job. It's very rare that two or more different lenders will offer the exact same rate with the exact same loan fees. They expect a smart borrower to shop around and compare terms, ask one lender if they'll match or beat another. It's the non-investors who buy 1 house per 30 years that don't realize the mortgage industry is a sales game.
Post: Morris Invest Case Study 3.0
- Overland Park, KS
- Posts 55
- Votes 12
Originally posted by @Danny G.:
AS OF NOW DO NOT INVEST WITH MORRIS INVEST!!!
MY CURRENT SITUATION WITH MORRIS INVEST....
I closed escrow with Morris Invest on 2/7/18 on a 3/2 900sqft home that was said to make $825/month in rent after the $25k in rehabs that they were to do. I was told that it would take 90 days to rehab the property.
2 months in I asked for an update on the progress, as that's what the welcome email stated I'd get, and i was told that because Morris invest is selling 40 properties a week they can't send someone out to the property to update me.
15 days later I recieve a Notice to Demolish in the mail. Figuring that i recieved this notice because this was a fixer I didn't think much of this notice but decided to call the inspector anyway. He was on vacation but when he returned he called me and asked if I bought this house before or after the fire. WTF?! After further explanation I told him that I didnt know of any fire that occurred. The inspector sent me pictures and sure enough MY HOUSE WAS BURNT DOWN AND LOOKED LIKE IT WAS ABOUT TO COLLAPSE. I immediately contacted Morris Invest and they told me to go through my insurance and file a claim. I asked what would happen if I had to demolish the building and they replied that I'd have to decide whether to rebuild, or sell the vacant land. It was a very nonapologetic answer with zero compassion, not even a "sorry this happened"! I started a claim with my insurance, they needed a fire report from the fire department so that they knew when this fire happened and more details. ABOUT 5 DAYS LATER I GET THE FIRE REPORT BACK ONLY TO DISCOVER THAT THE HOUSE CAUGHT ON FIRE WHILE I WAS IN ESCROW (before i bought it)!!!
This is where I stand now, I want to see if Morris Invest will make it right and will update this story once they get back to me....its been 5 days now and they are "trying to make sense of it all".
Added info: I spoke to a lawyer in Indianapolis today and she stated that she's had a lot of cases involving Ocean Pointe PM and Morris Invest and that Clayton is starting his own PM company called Blue Sky, DO NOT USE THEM! JUST READ THE COMPLAINTS AGAINST OCEAN POINTE AND KNOW THAT ITS THE SAME PEOPLE JUST WITH A NEW NAME AND NOT ENOUGH STAFF TO HANDLE THE CRAZY AMOUNT OF HOMES THAT TRANSFERRED OVER LAST MONTH.
I will update this when I know more...
Do you have an update on this?
Post: Please Help BiggerPockets Partner with Home Depot!
- Overland Park, KS
- Posts 55
- Votes 12
Originally posted by @David Hildebrandt:
You could earn Home Depot dollars (much like Menards 11% rebate which can only be used in stores) that can be combined with other discounts and spent like cash.
Home Depot is also 11% rebate any time Menard's is having that promo. I have earned quite a bit back in gift cards for future HD purchases. Love it.
Post: Wrong time to acquire rentals?
- Overland Park, KS
- Posts 55
- Votes 12
Everyone has their own speculations about what the housing market will do. And it depends on your local area. But interest rates are moving up along with home price-- sounds like an equation for more renters and less home ownership.
Post: Single Family vs. Multi-Family - ANYONE doing Single Family?
- Overland Park, KS
- Posts 55
- Votes 12
Also compare the 'actual' cost of a financed acquisition, which is lower on SFR, hence the earlier comment about it taking more money to acquire MFR. 125k SF at 15% down is $18,750 cost to acquire, may bring in $400/month above PITI. Or buy a duplex at 250k requiring $62,500 cost to acquire (25% down) that may clear $800-$1,000 above PITI. You "bought" the cash flow by increasing the cash down payment. They both have pros and cons, but just sayin...
Post: PMI do you put 20% down or do you put 3.5% down
- Overland Park, KS
- Posts 55
- Votes 12
I would have suggested 5% conventional if we're talking single family. FHA is great if you're going to owner occupy 2-4 unit, but conventional 5% wins on SF-- the mortgage insurance cost is lower and easier to remove.
Post: HELOC for a down payment on investment property?
- Overland Park, KS
- Posts 55
- Votes 12
@Lana Lee, valid. Does the HELOC provider give 'check-writing' privileges, and you just use this 'check' to fund the down-payment on new property? Or would you have to 'write a check to yourself' to get the HELOC funds in your personal checking and let it season a couple months before using as a new downpayment?
Post: Using HELOC to buy Rentals.
- Overland Park, KS
- Posts 55
- Votes 12
Originally posted by @Garrett M.:
Corby Goade Terrell Garren
Pen Fed credit union will do Helocs on properties 1-3 even if non owner occupied. I have not done this myself. I was told by one of their operators that they only do this for properties in your name, not in your business name.
PenFed is advertising 80% HELOC for an investment property. I gave them a call. Didn't tell the rep that I planned to use it for a downpayment of another property, but she did say "these are for improving the current property only". Has anyone ran in to issues with this-- or do you just go ahead and use the funds for another property?
Post: First time FHA Loan help!
- Overland Park, KS
- Posts 55
- Votes 12
@Michael Cohen. Can you actually use expected rental income to qualify if you do not have prior years of landlording experience via tax returns?
Post: FHA loan refinance to conventional
- Overland Park, KS
- Posts 55
- Votes 12
You can refinance out to a conventional loan at any point, really. The issue is if you'd have to pay mortgage insurance on a conventional with less than 20% equity. It would be based on the new appraisal after rehab.
Regarding the other question-- if you have lived in the house 1+ year, you can rent it out and not refinance, because you met the occupancy length spelled out in the loan docs. If you refinance to convention, your rental requirement would depend if you refinance to owner occupied conventional or investment conventional. Investment loan you would not need to wait to rent. Owner occupied loan would reset the clock that you need to live in it before renting.