All Forum Posts by: Dee Xixi

For the owner financing, it is not as easy as its sound like. Does it work, YES. Think about like the more owner you approach the greater is your chance to get one that says yes. Might be your luck too the first owner accept your offer. I dont know how you structure your offer but the no money down is an absolute no. At least put 10% down with a shot term from 18 months to 38 months with an option just in case if you cant get your act together within 3 yrs to refinance. Dont over pay for a property because the owner is carry the note, bad idea. Preferred to pay a higher interest, 8-12%.
To answer your last question, unless you have pml, good credit for FNMA properties or cash, you might have to look into subject to existing mortgage, master lease or just partner up with someone.

To minimize cost, can I use a transactional funding lending for 30 days? reconvert the condos to a duplex and resell to the fha buyer. The profit wont exceed the 120% restriction by fannie mae. what is the best way to rewrite a deed, is that something that take time and costly???

I am writing a business plan to send out to couple investors. Here is the financial projection and my selling point to them.
Please criticized and reveal any flaws of my analysis.

6 -12 units that can be purchase for 520k of under. The amount 520k represents 65% of market value of properties recent sold in the past 6 months. I will be interested in 2 bedrooms and up.
Purchase Price: $520,000 using the high value
Down payment: $ 104,000 -------20% down from an investor
Improvements: $50,000 represents 10% of purchase price -------- Improvements technological amenities- energy efficient appliances- some remodeling.
Closing: 570,000 x 2% = 11,400
Total: 581,400 ARV --------- Represent 72% of current market value.
Finance Amount: 581,400-104,000 = 477,400
Interest Rate @ 8%
Mortgage years: 360 months
Mortgage Payment: $3503

Revenues:
Let’s assuming each unit rent for the minimum rent in the area. For 1 bedroom (900-1150); for 2 bedroom (1050-1350) and for 3 bedroom (1200-2100). Let say for a 6 unit’s apartment, 3 of the units 2 bedrooms and the other 3 are 1 unit.
For the 1 unit; 3 x 900= 2700
For the 2 units; 3x 1050= 3150
Other income from storage, wireless, laundry and water = $1000 @ 200 person
Rental income: 4,800 monthly for 5 units and one 2 bedroom unit vacant.
Gross rental income: 5,800 monthly and 69,600 yearly.

Expenses:
• Property Taxes : 8,000 ------ use the highest number
• Insurance : 4,000 ----------- use the highest number
• Maintenance ----------5,000
• Management @ 6% of rent -------------------------------- $3,456
• Advertising (to advertise for tenants) --------------------- $ 500
• Utilities ------------------------------------------------------ $pay by tenants
• Other (anything else we may have missed above) ------ $1,000
Total: 16,956
NOI
69,600 – 16,956 = 52,644
Cash Flow
52,644-42,036 = 10,608
Cash-on-Cash Return
10,608 /104,000 = 10.2%
The investor makes $ 10,608 yearly for at least 5 years plus the original investment at the end. When I refinance.

The monthly rent is about $4300. My exit strategy will refi. The most i can come up with is 45k.

Hi Steve,
Can you please elaborate on the master lease option as well the balloon payment? how I can refinance because the property isnot in my name?
thanks!!!

There is this 4 units that I am interest on. The home is listed with a real estate agent. Most 4 units in the area are going for $475-490k k. This particular home I have an accepted offer for $335k but needed about $125k in rehab. I think it is still not bad. 335,000 +125,000= $460,000 but it will be closed to 96% market value. I can not find any HML that are interested. The owner is welcome to owner financing but is looking for at least 90k down which I dont have. I might have a contractor that could done the work and get pay later. So is there any creative way I can buy the home or control the property with the owner help. I figure I would have to pay the agent his commission upfront. Please pour some ideas.

Thanks

I am in a similar situation with a purchase I am making with Williams and Williams auction. In my case I need to reconvert the property from condo units back to a duplex to sell it to an fha buyer.
so Tony were you successful on getting the deed restriction waived by fannie mae? if not, anything useful that you come across to close your deal?

I

can I ask for title restriction to be waived

I just want to run this scenario by you guys for insight please.

I contact an auction company about two condo units under, technically the former owner split a dulex into condos(craziness) that they didnt get to sale at the auction. Their loss mitigation informed me that the seller wants xxxx for the properties. I am confortable with the price they want. so should i use a 30 days funding so that I can convert the property to a duplex again or what are my option for a normal funding. There is no way that a conventional lender will fund the property as 2 seperate condo units. but the seller is fannie mae, how is the deed restrction might play out.

Thanks Jon and Financexaminer. That exactly what i was looking for, constructive critiques. I will make the correction where you guys made the remarks and i will sure to post it again for more feedback.
Thanks a bunch