All Forum Posts by: Account Closed
Account Closed has started 1 posts and replied 380 times.
Post: Big banks vs small local banks
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Steve Vaughan:
Big bank's underwriting requirements are all the same as far as the borrower's credit &, character and the collateral pledged. All the same. If you are just getting a run of the mill residential property, look into them along with your local bank. If you seek commercial property, (including 5+ unit apts), storage units or something 'outside the box', local regionals are the way to go! As a matter of principal, I try to give my business to the smaller banks if possible. They didn't need a bailout, nor did they reward their CEOs with millions as the ship was sinking! Good luck @Kevin N.!
So you have a problem with BofA, the CEO pay or both?
Post: Big banks vs small local banks
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Kevin N.:
In general, which bank give you better interest rates?
It really depends on what exactly you are trying to do and the banks level of comfort/familiarity with what it is you want to do.
Post: when to use a hard money lender and best exit strategy
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Jason Crouch:
Okay so we have 2 rental properties and our primary residence I want to purchase more buy and hold duplexes or fourplexes for cash flow.With not having enough capital for a down payment I was considering this option, purchasing a property at 70% to MV with a hard money lender and then waiting the 12 months or more for (seasoning) and then refi with a bank. Has anyone used this strategy before.
Hard money rates can be as much as 18% per year not including any other loan fees. Question is... are you able to service the loan at that rate until you are able to refinance? Or is the rent able to service the loan at that rate for whatever the duration for seasoning is?
Post: Checking a small local bank for stability
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Peter Comb:
I am looking to take out some conventional loans with a small local bank. Any ideas how to do some due diligence on them?
thanks
Is the conventional loan for investment or personal reasons? May have to ensure that whichever bank you have in mind actually does have the products that you require. Also, is your concern that the bank doesn't have the funds to lend?
Post: Should I use hard money??
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Yosef Fares:
...I have a few different opportunities that i would like to pursue but on the listing it says Cash Only Short Sale...Not sure what to do i keep missing great opportunities because of lack of working capital...
How are you going about finding/sourcing the deals? "Cash only" usually means cash only -- especially on listed properties. Hard money usually does cut into margins.
Post: How does Reverse mortgage work?
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Jack Rengold:
@Account Closed
... i thought banks hated real estate, yet they are in the game of it...
Who told you banks hated real estate? They usually are in business to lend and real estate lending for most banks typically is the largest source of revenue.
Post: Loads of Equity without Access!
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Ronnie Thaxton:
I currently own a property in the District of Columbia with approximately $500k in equity. I am looking to gain access to some of the equity to capitalize other real estate deals. My credit is decent, but I have another property that is pending foreclosure. Any suggestions would be great. Thanks in advance.
So you are trying to access the equity in an unrehabbed and uninhabitable property prior to getting the property in a habitable condition? Is the 500K equity based on current condition of the property or ARV? What is the value of the property/mortgage for the property that is being foreclosed on? When you say pending foreclosure, any information on the exact stage of the foreclosure?
Post: Irrationality of HML rates -- one size fits most?
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Did the bank give any reason why they are nervous about making more conventional loans? Hard money lending, especially for rehabbing, often is extremely risky or could be.
The HMLs primary focus is on how sound the project is, profit margin (should they have to execute a timely foreclosure) and the demonstrated capability to service the loan -- down payment, cash reserves etc. Some forms of equity isn't always easily accesible.
A project with razor thin margins but from an applicant with an almost perfect credit score, doesn't necessarily soothe the nerves of the hard money lender.
Post: Is Mareketing for non-MLS houses necessary?
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Charlie MacPherson:
Originally posted by @Account Closed:
... It is against my client's interest to overprice a property - and yes, I've had clients do so against my advice and to their detriment...
You make it sound like the seller is supposed to feel bad about this. They do it all the time and usually couldn't care less what the realtor thinks. Deals through the MLS are just rare from an investor's perspective.
Post: Is Mareketing for non-MLS houses necessary?
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @John Santero:
When you purchase off MLS most of the time you are dealing with agents-not the seller. I feel you make better deals and structures if you deal directly with the seller. First of all- you can knock off 6% right off the bat that they will be paying for marketing. Good Luck.
The agent also realizes that the more the seller 'list for' (amount requested), the more they stand to make just based on the % what the property sells for.