All Forum Posts by: Scott Miller

Let me put one thing to rest for you; you won't qualify for a 90% Option ARM unless you are willing to go FULL DOC (You can get a 75 LTV going SISA; between 80-87 CLTV going SIVA).

100% financing using SISA is possible under the following conditions:

2 open trades with 12 month seasoning
2 months reserves
=<50>620 Mid FICO
Acceptance of combo loan

Regards,

Scott Miller

Although I have no personal experience in flipping this property type, I speculate that the condo associations and bylaws (for renting) would need to be investigated to determine what your options are before you make an offer.

Regards,

Scott Miller

Why not keep your existing investment and leverage it (through a cross collateralization) to invest in another?

A cash out refi, bridge loan or a program that allows for cross collaterization would provide the seed capital for the new investment.

This makes sense if your perception of increased value is supported by the cash flow to support the new indebtness.

Regards,

Scott Miller

These issues have to do with lending (title seasoning, chain of title issues, etc) as well (unless the wholesale fix and flip/purchase is not going to be financed conventionally when he/she sells it).

Regards,

Scott Miller

Aside from hard money lenders, there aren't too many commercial lenders that will agree to take a subordinate position (also pending the owner agreeing to such subordination).

The reality in commercial financing is that most banks want a shared risked arrangement (they want some of your skin in the game).

Don't get me wrong, you can still achieve high LTV/CLTV arrangements, but rarely will you find 100% commercial financing (100% financing is available for office condos and 95CLTV is available for 5+ units/mixed use; these are amoungst the lowest downpayment programs available if you qualify).

Regards,

Scott Miller

If your ROI is dependent on the prevailing interest rate, then I suggest you need to set your sights higher.

Even if the FED where to drop the Fed Fund and Prime rates, you could refi to take advantage of the lower rate.

Regards,

Scott Miller

Or other compensating factors...

Regards,

Scott Miller

More specifically, this would be considered a mixed use commercial finance requirement.

As long as more then 50% of the entire property's NOI is derived from the residential portion of the property, it is possible to achieve as high as 90% financing (95 CLTV with a seller second).

Regards,

Scott Miller

This is how I would do it...

- Determine min. ROI you want to achieve.
- Determine what the min. purchase price is required to achieve ROI target.
Make a list of all properties in your target purchase price range (based upon the above filters)
- Determine current indebtness/equity position (by way of a title search) to determine estimated ROI for every property in your list (could be time consuming and/or expensive)
- Inquire about those that meet the above standards.

It's sad but true, paying cheap money for a broad list (that you have to pan to find the gold) always costs more then paying a little more for targeted list.

Regards,

Scott Miller

IMHO, the problem with Realtor.com or ForSaleByOwner.com and the like is you are asked to purchase "space" without a quantification of relavent traffic (who cares if Realtor.com serves of XXXXXXX of visitors per day, week, etc., how much of that traffic is specific to your target market?).

These companies do provide a service, but it's not selling your property (they provide a platform in which you can list and catalog your property listing), that's your job.

If your property isn't located in a highly searched location, your money is better spent in more localized marketing efforts.

Regards,

Scott Miller