All Forum Posts by: Dave S.

5% down with no pmi doesn't exist 5% down for investment properties (non owner occupied doesn't exist) All for maximum leverage for the min down payment.

@Dave Toelkes

Calculations based on your above assessed value method work out to be ~110K and 73K. Saying most lenders dont lend less than 50K, the min for the one property would be 67K anyway. So both methods ironically work out to be about the same value. 

Ill work with the lender to see if we can make one loan for both properties and atleast save on the closing costs some. I will have to open up two HELOC to get my total amount out to keep getting houses, which shouldnt be costly.

Here is the situation...I am purchasing two properties. Total between them is $183K. The seller doesnt care how i split up the purchase prices. So it got me thinking, the one property has a likelihood to appraise for the entire $183K. 

Does it make sense for me to split the purchase up to $183K for one house and the other for only a $1?

Pros: 

I get to pull one HELOC for 75% of the 2nd house and propagate to purchase more houses!

I get a lower interest rate

I save money by only doing one closing

Cons: 

When i sell the property I will owe alot of capital gains (but is it worth it??)

Other facts

The brokers that i came across have a minimum loan amount (85K)

If loan is less than 85K I would be forced to pay out of pocket OR get a loan at a higher rate (~1.5% higher) 

Thoughts??? I would like to put the contract in place today!!! Been working on a verbal for a while.

Thanks

Looking to contract and close a two investment property deal directly with the seller. No agents involved. Since it's my first time doing this (by myself), I just don't want to overlook something or delay something. So are buyer agents really needed? What purpose do they serve at this point of the process that I can't do myself? I'm always told that an attorney should be involved (not needed in pa) to cover my a$$. So what is the most cost effective way to proceed???

I currently only have a verbal contract with the seller of an investment property. What form must i use to get and fill out to make it more of a binding contract? Is this the ASR - Standard Agreement for the Sale of Real Estate" or is there a form prior to this to get the ball going??? Live in Pennsylvania

@Jim Sakalis Thanks for your quick response. Ill look into the local CU and community banks. 

Looking for some advise. I came across a deal to purchase three single family rentals for sub $150K. My limited experience with lenders, $50K loans are difficult to find a lender for / close on...Letting along 3 of them. As this is one deal transaction, what are my options for closing this deal smoothly. I already asked seller about seller financing. They didnt say no yet but wanted to know what my options are if they do come back and dont like the idea.

Thoughts?

Bump

Here is the scenario, Please let me know if this is legit or if not what other means can i accomplish utilizing all the equity in the property....

An agreement between me and seller is to buy the property at $100K, property is worth and will appraise for $150K. If i use a HELOC to purchase and have a contract with seller to provide the difference after closing, is this legit? I will use the funds to mostly pay off my HELOC.

Has anyone come across a bank that will utilize the equity in the house above the sale price and put that towards the downpayment???

Has anyone used a home warranty for their rentals? If so, who? Also since there is a service charge does it make sense for the tenant to pay for the service charge? This would help reduce complaints but also it may have an issue linger cause the tenant doesnt want to pay. Thoughts???