All Forum Posts by: Corey Davis

OK, I can't seem to use the search function today, or the answer is just too vague... Here's my dilemma: underpriced condo in rapidly progressing neighborhood of very desirable city. No rent cap, so no conventional loan, BUT I actually want it as my summer home. ( 4 months a year ) owner is in a bind and wants to cut losses, I'd give my left arm for the condo, just don't have the cash (126k ) and don't want to flip it. It's definitely a buy-and-hold cash flowing property.

Question: once I own this property, will a bank allow me some kind of re-financing to get out of a HML within 4-6 months? Or does it's status as an income condo mean a bank will never touch it?

If I'm renting it out 8 months of the year, and living in it 4 months, does that put it in a different classification?

I need to know how to make this work, it's just too perfect to let go of.

@Jeff S.

Thank you. You, sir, answered my question. I will proceed in the normal manner and call several lenders in hopes of securing the right deal.

@Tevis Verrett "@Travis Daggett to clarify: I'm viewing about twenty or so properties, all of which fit a specific business plan, but the final say on which property we choose is based on my contractor/designer. Therefore, I can't give specific property details ie:address because one hasn't been chosen, and in fact won't be chosen unless I can provide my end, hence the HML."

OK, to be more specific: I'm really NOT hiding details, I don't have the details because I have multiple properties to choose from, and will pick a property based on a response from a HML if I can get a "pre-approval " type of situation, hence the title of the thread.

I totally understand the normal route of acquiring funds from a HML, I was asking if there was a way of getting a lender to agree to some kind of figure in order for me to know I PROBABLY have the funds available before I made a move only to fall short on funding.

I guess my point is getting lost in this thread somewhere. I was hoping to hear examples of other people pre-negotiating. I'm just going to proceed with the normal routine and hope for the best...

@Mathew Wray so... What's your final thoughts on buy and hold houseboats in Portland?

Exacly what I needed to know! Thank you very much! @Donald Stevens @Kyle J.

@Donald Stevens so I can count on replacement value of the structure being whatever safeco calls it? Meaning, if all other same sized properties in the area are valued at say, 100k for land only, then if safeco replacement on the structure is 280, I can (kind of) ballpark total value at 380k? Or is real life market value of the structure going to be WAY off?

@Donald Stevens thank you!

I'm looking at a property fsbo, where the owner is claiming a value of 280k, based on the safeco insurance replacement value of his property. Owner is asking 160k, and I intend to rehab and sell for 225/235k if the value is indeed 280k, that should make this a very good deal for my buyer.

Problem is, I'm 2100 miles away at the moment, and won't be able to view the property until next week. So, my question is, how much of this safeco replacement value can I use to actually value this property? Obviously I'm not going to buy a property I haven't seen, but, I'm not going to fly across the continent unless the insurance value is a very good indication of my projected market value after rehab.

@Bill Gulley

Hmmm... The wink and nod is all I've been getting. My dilemma is I save face with my partners and save money and time by KNOWING a HML will perform before I ask my partners to step in. If I get the property under contract, I theoretically put my partners under contract as well, and if say, a situation comes up where I needed 68k, and a HML is only willing to contract for 65k, (yes, those are actual numbers in this case) I'm literally having to tell an investor that I need more money, or tell my contractor that I am short on funds to cover extra for purchase funds.

Everyone I'm working with is doing me a huge favor based on a solid plan, I don't want to fall short, and literally being off on my numbers by more than 2k puts me in a position that won't look great.

I guess it's just time to take this conversation to the HML and find out for myself how much of a guaranteed number I can get...

Anyone have suggestions for Oregon lenders? I know where the contact numbers are, and I can certainly find the local investors here on BP to ask, just wondering if anyone has personal experiences, as I find those speak louder than web page designs. Thus, my love for Bigger Pockets.