All Forum Posts by: Scott Miller

There are a number of ways you can go about doing this (the least being a HELOC). here's a couple:

a. Get a hard money rehab loan. Based upon the numbers you have presented, the ARV will be around 62. Find a hard money lender that will provide a 70-75 ARV loan, and you will be able to roll in the purchase + rehab (plus some closing costs) as long as the sum total doesn't exceed the allowable ARV limit.
b. Get a conventional rehab loan: Unlike hard money rehab money, conventional will allow for up to 80 ARV (you could finance more of your closing costs using this program).

I don't like the HELOC approach for the following reasons:

a. It will effect your DTI and credit scores
b. Rate volitility: HELOCs is pegged to prime; your cash flow will take a hit everytime the FED raises the rates.

Caveat: Going the HELOC approach makes sense if you are borrowing money from yourself on the short term; if you intend to rent and refinance, my concerns are moot.

Regards,

Scott Miller

Your options will be ultimately be dictated by occupancy status, financial and credit histories and other factors.

If you intend to occupy this property as your primary residence, the FHA 203k loan could be a suitable loan program. The loan amount is based upon the ARV/FMV (after repair value/future market value) and as long as the sum total of the purchase price + rehab costs + closing costs doesn't exceed the max. allowable ARV/FMV of between 97.15-98.75%.

In addition, there are several owner occupied renovation programs that might be an option for you as well.

If this is investment property, the most popular approach is a hard money rehab loan. Like the FHA 203k, a hard money rehab loan is based upon an ARV/FMV allowance (usually between 65-70) and allows you to roll in the costs of purchase, rehab and closing costs as long as the total doesn't exceed 65-70 ARV.

Regards,

Scott Miller

http://www.escapehomes.com/articles/How_to_Get_Information_on_Comparable_Sales.htm

CA is one of a handful of states that don't offer an electronic version of the registry of deeds; as you have mentioned, you have two choices....

Manual or fee based.

Regards,

Scott Miller

Differentiating your property from others in the MLS inventory is IMHO exactly what needs to be done to move inventory in these times.

It is going to be difficult for you to accent the profit making opportunities that your property possesses beyond embedding this into the "for sale" advertising.

What type of seller incentives are you offering? Have you structured an in-house financing solution in which you are willing to buy down the rate, or pay a portion of closing costs or both?

IMHO, seller incentives will get the market to come to you and the profit potential will keep'em there.

Regards,

Scott Miller

You might be interested in this study on manufactured housing which was released Nov. 2006; http://www.census.gov/const/www/mhsindex.html

Regards,

Scott Miller

Where are you located?

The reason why I ask is that many states offer a free searchable registry of deeds online (but there are quite a few that charge a fee for access).

Regards,

Scott Miller

Well...that's make more sense....

FYI...the OP started this message in Oct. 2006...

LOL...another good or bad question...

I'm not touching this one as it could turn into the neverending thread....

Regards,

Scott Miller