All Forum Posts by: David A Lisowski

@D Mack

Appraisers can make adjustments to properties to compensate for "differences" in comparable properties. The add or subtract value of items like a pool or garage or square footage, etc. There is usually a % adjustment that most banks or lenders will have a threshold/limit. Usually adjustments in the tens or twenties will cause concern. Appraisers must "bracket" the value by providing comps under and over the value of the subject property.

If you mean a comparable just to get better numbers, then you might be too rigid in your parameters, as others have mentioned. Yes, you should want to find properties that are close by with similar beds/baths and square footage and lot size with similar geography. But unless it's a designed community with limited home models, you won't find exact matches for comparables.

@Russell Brazil

Thanks, Russell!

@Upen Patel

Thanks, Upen! I'll try to be a bit more succinct in my questions. I'm usually pretty scattered when starting a new plan of action (I tend to analyze and plan a lot). I'll send you a message

@Alexis A Peinado

You will be getting another appraisal after the renovations.

If you had offered the full ask price $200,000, this appraisal would be an issue. It's not, and you should be fine using the appraised value to get a loan since it is higher than the purchase price.

If he appraises the property you are buying for $130k at a $200k appraised value, wouldn't that also cause issues? Sure, it's great for you, but I imagine the seller would find a way out of a deal losing $70k.

From what you said, this appraiser did it right.

@Arsen Atanasovski

They get the contract in order to do the appraisal

TL:DR = experienced mortgage processor (not MLO) looking to start his own mortgage brokerage; need advice

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Hey all, I've searched and read several of the posts regarding this topic. There is definitely a lot of information, but I was hoping to connect with a few people for some advice on becoming a Mortgage Broker, and working on my own.

I have been a mortgage processor for the past 6 years, and worked in various-sized companies, from mortgage lenders to commercial to brokers. Currently, I do not have my MLO, and do not originate loans. I did have an NMLS number when I first began in the mortgage world, but haven't needed it the past few years so I have not renewed it.

Often times, I feel that the file work (even taking on addtional workload and tasks) would definitely be worth my time if I was compensated on commission rather than a flat-rate per file. I understand there is so much more than file work when being a broker: leads, networking, lenders, etc. I know that going on my own increases the workload and the pressure. It definitely will be more demanding than working a limited position in an office (certainly to start).

What I really want to find is someone who might be able to offer some advice or even work to help my transition from "processor for someone else" to "Mortgage Broker for myself."

I should have an option where I am currently working to obtain my MLO/Broker License and work as a loan officer. I know that, as a processor, I would have to file paperwork stating whether I do or do not originate loans. I haven't necessarily brought this up with my employer, but I also don't want to get ahead of myself (i.e. take the MLO/Broker License test and then cause issue with my current position).

Ultimately, the plan would be to get my MLO/Broker License, and operate my own mortgage brokerage. I'm not trying to get bogged down on every detail, but perhaps someone with some experience can help clarify the following requirement for the Principal Loan Originator:

https://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/FL-Mtg-Broker-New-App-Checklist.pdf

"The Principal LoanOriginator must also demonstrate to the satisfaction of the Office of Financial Regulation that he or she has been actively engaged in a mortgage broker related business for at least one year before being designated as a Principal Loan Originator. Individual licensure with the Office of Financial Regulation for one year will satisfy the experience requirement."

So I will need to be an active Loan Originator/Broker for 1 year before I can form my own brokerage/LLC? Or does any experience count? If I need to get my license and wait a year to form my own brokerage/LLC, then I am willing to do that.

I have estimated the expenses to be between $800 and $1,000 for the licensing, the education course, and exam(s) [might do FL, AL, GA and/or TN for license]. I have a few lenders to get started.

I understand there is probably a lot that I might be overlooking, but there might be some major blind-spots or potential landmines that I am overlooking. For example, I just read about needing a surety bond, but I'm not sure FL requires one (AL is $25,000; GA is $150,000; TN is $90,000). That might have been a big pitfall in starting this business.

So based on that, I thought I should seek some advice, assistance, etc. Just to get my head around the startup process and the actual efforts it will take.

PS - My wife recently transitioned from being a nurse to being a Realtor. The timing of my business plan will be tied to her success as she starts her new venture (i.e. we can't both jump into new S/E careers at the same time).

PSS - sorry for the previous post violating the rules; hopefully, this one is better!

Closed on a new investment property in June. Solid tenant on 1 year lease (already indicating a renewal for another year).

Wife became a Realtor and has started her new career (formally an RN)!

We found out that we are expecting a baby boy (due March 2022)!

Working on the next investment property, with plans to get into RE development :)

@Kristen Brandner

In my experience, people offer this as a way to sweeten a deal they know they wouldn't get otherwise.

Typically people in this situation may have some money at the time, but it indicates a larger risk because this is a bad money management system.

Why can't this guy open a savings account and put 1 year of rent in that account and just draw down each month? Probably because he'd spend it otherwise. Maybe not, but you don't need the responsibility of managing his money.

This also presents problems in mortgages (which I know this isn't about, but offers some insight into the inherent risk). When a borrower pays rent up front, they undergo a "payment shock" based on essentially paying $0 rent per month to all of a sudden having a monthly mortgage.

So what happens at the end of the year, and this guy wants to renew the lease? Are you going to reevaluate his creditworthiness and qualifications again? His situation will change dramatically if he's expected to start making monthly payments when he wasn't before... or does he plan to pay 1 year advance each renewal?

Like others have mentioned, there may be legal restrictions as well. I'm not too sure, and honestly, I wouldn't have thought to look that up until I read this thread!

Hello all,

As we close on our 1st investment property here in Northwest Florida, we are moving our focus to multi family and apartment investments.

As much as we'd love to compete in the short-term rental market, we see a big need for local, long-term rentals for the folks living and working here.

We wouldn't turn down more opportunities for SFH investments in the area, but we are looking for scalability, and increased cash-flow.

Although we might not be ready to invest in the immediate future, we certainly need to lay the groundwork now for building a pipeline and analyzing deals.

Open to opportunities for rehab, and development. Hoping to fill a much needed market.

Hoping to connect with some commercial brokers in the area, and wanting to find a few that align with our goals - more details to come as we discuss.

@Michelle Dong

Yes.