All Forum Posts by: Dawit Wo

Have you considered offering wake-up services as a property amenity? Someone physically knocks on doors until people answer - more reliable than phone alarms. Thinking about business travelers, shift workers, anyone who needs morning accountability. Could differentiate rental properties or STRs. Anyone tried something similar?

Does the 6 month seasoning start from purchase date or COE? My rural property was bank owner, but since the PO was married when he signed the deed in lieu they needed to go back and get his ex-wife to sign off. 

If the property is currently in my name can I still close in my LLC?

How much will the appraisal cost and how do I get started?

Are drive by appraisals a thing, if so, when are they used? Im in CA but property is in OK.

Hypothetical:

On the 800k property. What's the minimum the seller would have to carry for me to qualify for the 10% equity: would 50k carry be enough? 

Also, if the property appraises for 900k, would the 100k built in equity satisfy the equity requirement or does it have to be new money? 

@Nate Herndon

Didnt expect a yes to stacking my small properties for one loan but my fingers were crossed.

Thanks for breaking down the hypotethical. I've had trouble with sellers in California wanting me to put down 25-50% I don't have so this could change the conversation.

Quote from @Nate Herndon:

Quote from @Dawit Wo:

Quote from @Nate Herndon:

@Dawit Wo - looks like a decent deal on fees - I'd be able to accommodate the following for a DSCR loan at a 7.50%. A bird in the hand is worth two in the bush, that's always true. Clear to close is a big deal. Appraisal transfers are pretty easy with the program I've got in mind.

Your terms are better but I signed today. I was just tired of waiting. What's the lowest loan amount you can do and how long do they typically take it? Also, is it harder if its a vacant rural property?

That’s great, congrats! Small differences in interest rate isn’t wildly important on a lower loan amount.

Minimum property value is $75,000 and minimum loan amount is $50,000. A rural-marked appraisal will be capped at 65% LTV; vacant is OK on purchases and refinances with less than 6-month seasoning. We will use appraised market rents in both of those scenarios.

Typical target closing timeline is four weeks from appraisal payment. 10-14 days for upfront processing and all third-party items to be returned like appraisal, title, and insurance; 10-14 days allocated for underwriting and closing. 

Thanks!

As for the 6-month seasoning, do the rules change if I've had the property longer? Can I use two 50k properties to qualify? If so, would they have to be in the same state? 

Hypothetical:

A property is 800k and seller is willing to carry 400k at 0% in second position. Could I put down 100k to get a 400k DSCR if the rent is 5k/mo since it's enough to service both debts?

Quote from @Erik Estrada:

Quote from @Dawit Wo:

I applied in May and appraisal was completed in less than a week. Yet, I received terms 2 weeks ago, and CTC this week.

Rate: 8.125%

Processing Fee: $995

Closing Fee: $1,360

Origination Fee: 2.650% 

Admin Processing Fee: $995

Is this bad considering it's a small cash out: ~60k? Credit was 720 or 700.

 Yea this is a solid deal. Small loans tend to be more expensive. It's not worth the risk of transferring appraisals to a lender that may or may not perform on their promise. I would say if it makes sense for you, close on it. 

I didn't know that they choose not to perform after agreeing to; that might've deterred me. I didn't like the fees but it definitely made sense so I closed on it. Thanks!

Quote from @Nate Herndon:

@Dawit Wo - looks like a decent deal on fees - I'd be able to accommodate the following for a DSCR loan at a 7.50%. A bird in the hand is worth two in the bush, that's always true. Clear to close is a big deal. Appraisal transfers are pretty easy with the program I've got in mind.

Your terms are better but I signed today. I was just tired of waiting. What's the lowest loan amount you can do and how long do they typically take it? Also, is it harder if its a vacant rural property?

Quote from @Derek Brickley:

This is DSCR or conventional?? DSCR I need to work with your lender I've never found DSCR under 75k loan amount... conventional I'd have some questions

DSCR. Looks like Nate can do em too

Quote from @Lauren Sanford:

Quote from @Dawit Wo:

@Lauren Sanford

I barely learned I could resell and estimated around 50k at 0%. It's an investment property so I thought dodd frank didn't apply. Are you able to share those 14 items and the chart?

 Yes if it's a business to business it does not.  We discuss this on our show.  However a 0% loan at 50k payments are around 208.33 a month.  For a note buyer to buy this note and get a 12% yield, they would have to buy this for around $1,400.  

There might be a bit of confusion. Seller and I have agreed to ~90k, 5k down, 0% for 20 years. I believe 12% would be closer to 30k. Not sure where you got $1400. Also, is there a specific episode of your show?

Quote from @Brandon Croucier:

What is the loan amount?

 60k

Quote from @Ben Scott:

There is one available on the OREC website. Or DM me your email address and I can send you one.

 DM sent. Thanks!