All Forum Posts by: Jack Forester

Found this thread, now that I know the exact term. This suggests it's episode 233. Not sure how that qualifies as "recent" in my head, but I'll give that one a re-listen. https://www.biggerpockets.com/forums/50/topics/501771-delayed-financing-exception?page=1#p3637160

I believe the "trick" was to include the rehab costs on the settlement statement, which I think involved an escrow account to hold the rehab funds.

Official link, straight from the source. In the podcast he mentioned writing the rehab costs into the settlement statement, which required an escrow account to hold the funds at closing, if I recall correctly. https://www.fanniemae.com/content/guide/selling/b2/1.2/03.html "The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value)."

@Mindy Jensen The term is "Delayed Financing Exception", which I found here: https://www.biggerpockets.com/blogs/5110/46871-buy-rent-rehab-refinance-cash-out-refinance-delayed-financing Still looking for the Podcast by re listening in 1.5x speed. Wasn't 287. How's the transcription going?

@Mindy Jensen, @Brandon Turner, @David Greene do you remember which Podcast it was that the guest talked about a delayed/deferred closing that he put the rehab costs on the HUD, which allowed him to refinance the house immediately after the rehab, rather than waiting the required 6 months?

On a recent podcast a guest talked about writing in the repair costs into the HUD on a cash purchase, then after closing, fixing up the property and immediately refinancing with cash out for the amount on the HUD, without having to wait the required 6 months. Does anyone remember that episode? Anyone know what this is called or how it works? Thanks!

I'd say that depends on your risk tolerance.  What are the market rents are and the mortgage rates?  Do you need the cash flow now, or do you want to minimize the taxable income?  Do you want to lock in the presumably low interest rates now (if rates continue to climb, this could be the cheapest money you can find)?  If you are working with banks for loans, they like to see 6 months reserves, based on the mortgage payments you have.  These are the things that I think need to go into the decision.

Will they also regulate the amount the electric companies will reimburse customers for the grid-tie sell back amount?  In Georgia, we are charged $0.08 - 0.10/kWh, but you get paid only $0.03/kWh for excess solar power generated (at least that was the offering from my electric company).  So the amount the electric company will pay is a great factor in the pay-back.

So, I spent last night in bed with my mind racing, wondering if they would accept the offer, how to fit a 3rd bedroom into this 1900 sqft 2/2, and running through the list of all the repairs needed.    How many offers/properties did you make before you could easily sleep like a baby without worrying about it?   :D

I thought the same thing when my septic guy drove up in a jacked up Chevy Silverado 2500 Rocky Ridge Metal Mulisha that he almost needed a ladder to get into.  I was thinking, "This guy must really be making a killing off of me," but I said, "Wow, nice truck!"   He bashfully explained that his wife bought it for him, because he works really hard and she thought he deserved it.  He said, "I would have never bought this for myself, I was happy with my old truck."   Then I thought about how much sh!# he deals with on a daily basis, and cut him some slack.  I still use him for my septic jobs.