All Forum Posts by: Jeff Copeland

The reason they don't want to operate it for five units is it will operate at a loss. 

It is MUCH easier, simpler, and cheaper to just install residential (free) machines, and charge a flat rate for unlimited laundry use. 

It's a tool. Like any other tool, it needs to be the right one for the job. 

Seller financing has many benefits to both parties, but it's not right for every situation. 

See: https://www.biggerpockets.com/...

The property belongs to the Estate of Jane Doe, Deceased. 

That doesn't always mean they need or want to sell the property.

If/when they do sell, it often means dealing with multiple heirs who have to agree on things like sale price and terms. Sometimes it can present an opportunity for a good deal. Other times, the heirs can't agree on anything and it presents an opportunity for wasted time and headaches!

Most banks will not do a HELOC on an investment property, only on a primary residence.

Rates are predicted to climb this year, so you might consider locking in what you can now (in terms of rates, which are still historically low) and access your equity before rates notch up again. 

This assumes you have already decided to tap your equity rather than continue to pay down the existing notes, which is another discussion altogether. 

99% of bank owned properties get listed on the MLS via a real estate agent when the bank is ready to sell. 

The delay is often due to pending lawsuits, bankruptcy and/or probate cases, etc, which affect the title work. Once the bank has free and clear title, they typically list the property and sell it. Not much can be done before that. 

Your lender should be able to factor in the payoff of your HELOC as part of your DTI calculation, but this is something you should be asking them, and discussing with them in advance.

And there is generally no need to create a lien in order to payoff your HELOC at closing. You will direct the closing agent/title company exactly where to send the funds as part of the closing process. You can simply tell them to wire X amount to payoff your HELOC, and the rest to whatever other account you want the funds to be deposited in 

Impressive success in so little time. 

Another avenue you may want to explore is having your spouse pursue Real Estate Professional Status at some point in the future. The tax benefits can be enormous for couples filing jointly where one is a high wage earner and the other has time to focus on real estate. Groups such as Semi-Retired MD teach this method. 

This is generally referred to as a "house hack". FHA normally requires at least 3.5% down, and then requires you to live in the property as your primary residence for at least a year.

The main challenge in a strong seller's market (which many areas are experiencing right now) is FHA financing does not compete well against conventional and/or cash offers, for a number of reasons.

Another challenge is the FHA's property condition requirements, which make it difficult, or in some cases impossible, to buy a fixer upper or value add property. Something as minor as peeling or chipping paint, or worn out flooring, can cause a property not to qualify for FHA financing. 

Sending you a PM.

1. There are very few foreclosures out there due to market conditions (high real estate values = equity, which makes foreclosure less likely because the owner could sell and walk away with cash instead of going into foreclosure). 

2. 99% of foreclosures get marketed on the MLS anyway. The bank, just like any seller, wants maximum exposure and maximum value for the properties they are selling.

3. That being said, Fannie Mae and Freddie Mac (and some private banks) foreclosures have a "first look" period, where they will only consider offers from owner occupants during the first 1-3 weeks on market. Keep an eye on the HUD Home Store and Home Steps for these (you may see the same listings on the MLS, but you'll find the "first look" info here at the source.

4. Shopping for months and not finding a deal is perfectly normal in most places right now. Keep grinding.