All Forum Posts by: Mark F.
Mark F. has started 12 posts and replied 221 times.
Post: Impact of FHA Mortgage Insurance Cut?

- Investor
- Orange County, CA
- Posts 230
- Votes 138
Actually, it's good for any flipper. FHA loans aren't just for first-time buyers, people that have already owned homes use FHA financing as well. On a $200,000 loan, the annual MI reduction means an $83/month payment reduction. For a $400,000 loan, it's a $166/month payment reduction (assuming a down payment less than 5%).
It's also really good for people that already have FHA loans because they can possibly streamline refinance for a much lower rate and payment. When I was still doing refinances, I often had to turn away people who wanted to streamline because they couldn't save any money on their payment. Yes, they could get a lower interest rate, but because the annual MI rates were so much higher than before, they couldn't save any money on their total payment.
With this MI reduction and the drop in interest rates recently, a lot of people will now be able to streamline refinance their FHA loans and possibly save some good money.
For those not familiar with an FHA streamline - it's a great refinance option. No appraisal is required and there is minimal or no income or credit qualifying. Lenders commonly cover all or most of the closing costs as well. Good stuff!
Post: First Time Purchase - In or Out of State?

- Investor
- Orange County, CA
- Posts 230
- Votes 138
Personally, I'm really leery of maximum leverage. Leverage is a double-edged sword; it can greatly multiply your returns, but it can also really wreck you. I'm glad things are working well for you guys, but I definitely prefer to have a healthy equity position in a property.
Post: How to Loose Money on Multifamily!

- Investor
- Orange County, CA
- Posts 230
- Votes 138
@Ben Leybovich Your post is exactly why I'm sticking with the small stuff for now. I need more time before I graduate to the bigger stuff :)
Post: Fannie Mae 97% LTV Loan Question

- Investor
- Orange County, CA
- Posts 230
- Votes 138
FHA's not bad, the problem is the mortgage insurance can be steep. You'll pay two kinds: the upfront MI, which is 1.75% of the loan amount, and the annual kind, which is 1.35% (though soon to be lowered by FHA) of the loan amount, divided by twelve, and added to your payment for the life of the loan. You might want to have your loan guy price out both the 5% down Fannie conventional and the FHA 3.5% down and see which one works out better.
Post: Appreciation or Cash Flow - That is the Question

- Investor
- Orange County, CA
- Posts 230
- Votes 138
For me, it's cash flow. Waiting for appreciation puts your financial future in the hands of a market that can turn against you. Real estate is really volatile in LA and OC and we've already had a pretty big run up in prices the last 5 years, so could we be due for a downturn? When investing for cash flow, you put your financial future more in your own hands, plus cash flow is what gives you financial freedom.
Post: what is real estate

- Investor
- Orange County, CA
- Posts 230
- Votes 138
From Investopedia:
real estate. Land plus anything permanently fixed to it, including buildings, sheds and other items attached to the structure. Although, media often refers to the "real estate market" from the perspective of residential living, real estate can be grouped into three broad categories based on its use: residential, commercial and industrial. Examples of real estate include undeveloped land, houses, condominiums, townhomes, office buildings, retail store buildings and factories.
Post: FHA to Cut Mortgage Insurance Premiums

- Investor
- Orange County, CA
- Posts 230
- Votes 138
This is really good news for people that have existing FHA loans. With rates having dropped recently, it might be time for them to call their lenders and see if they can streamline their FHA loan for a lower payment. FHA streamlines are awesome; they're easy to qualify for and lenders often cover all or most of the closing costs. And, streamlines don't require an appraisal.
Post: First Time Purchase - In or Out of State?

- Investor
- Orange County, CA
- Posts 230
- Votes 138
Hi Jamal, I'm big believer that investing for appreciation is pseudo gambling. Unless you're the one driving the appreciation (such as buying a beat up property for an extremely aggressive price, fixing it up, and causing appreciation that way), you're leaving it to the whims of a market that could turn against you. Prices have seen such a run up in areas like DC the past few years, so what's the guarantee they'll continue to do that?
Personally, I invest for cash flow because that's what's going to allow me to be financially independent. Plus, I have more control over driving that cash flow. If you do invest out of state, I would advise getting a great management company. If you're a newbie, you probably don't want to be trying to manage remotely. Yes, management costs money, but I've found that a great manager is worth their weight in gold.
Post: Fannie Mae 97% LTV Loan Question

- Investor
- Orange County, CA
- Posts 230
- Votes 138
Hi Brian, is your wife's name actually on the title of the house? If not, then I would think she's not considered a homeowner and you could qualify for the new Fannie 97% program. I would look that up (your property tax statement would show it) and then call up your lender and ask if you can qualify. Worst case, if you don't qualify under the 97% program, you can still come in with as little as 5% for a Fannie loan. I don't know how much you're planning to spend, but another 2% down payment may not be that bad.
Post: California Real Estate Salesperson Exam prep

- Investor
- Orange County, CA
- Posts 230
- Votes 138
I think I took the Allied course. Do the crash course and listen to the CDs in your car while driving as much as possible, then take the test a week or two after the crash course. The test isn't hard if your prepared, but be ready for a few nonsensical questions. I ran across one question that had me questioning my sanity because it made no sense. I later learned that the test board tests new questions that don't count toward your score. If you prepare adequately its not a hard test at all. Take a crash course though.