All Forum Posts by: Jason Wray

Jonathan,

Sounds like a good plan one thing I would offer is consider looking at staying cash fluid and as mortgage rates continue to drop, use the Banks money.  If its a total "Fix & Flip" and will not pass an inspection having the ability to buy all cash does offer some benefits.

I would just go with Florida, you can jump on Sunbiz org and complete the company info, and fill out your articles of inc. Its also more cost efficient compared to NY in terms of fee's and overall costs to set up LLC.

When I set my LLC up in Fl it took literally 15 minutes and you will need to get your Tax ID/IEN set up so you can get your business checking account set up with a local FL bank. Chase is one that you will typically find in all cities for convenience.

Barry,

Tampa is only 30 minutes from my office and its a Hot spot for sure with each year showing more growth & cash flow opportunities. There are a ton of areas to make a move on depending on number of units and location. You have the typical family oriented neighborhoods, Business districts, Amenity area like Busch Gardens, Wet & Wild, Raymond James Stadium which can bring in a good STR for games, and vacationers in general.

I am open for discussion if you want to talk Tampa or help offer some neighborhoods for thought.  Feel free to message me here on the BP forum always happy to help.

Easy to get into 2-4 unit multifamily with lower down payments, use of 75% of other units rents to qualify, can be purchased as primary with 3.5%-5% for primary and 15% for investment versus Storage facility which carry a higher down payment, tougher underwriting, DSCR requirements, percentage of units rented ratio requirement, previous years financials, Each bank/lender has specific overlays and may require more based on commercial financing.

Some banks and lenders also require landlord experience when it comes to storage facility or commercial loans in general- Not all but some so good to ask up front.

Yes - You have two options in terms of primary home - FHA 203K or Fannie Mae renovation loan for primary homes "Home style program".

FHA carries a life-long MIP (Mortgage insurance premium .55x loan amount/12) plus a 1.75% upfront MIP 1.75% x loan amount financed into the loan> FHA does allow higher DTI ratios front and back.

Fannie Mae - PMI falls off at 80% LTV- PMI typically has a lower ratio versus FHA ,55% compared to .25-35% for an example with good credit (above 720) it drops for higher Fico scores (less risk).

Both loans can be a painful experiece for the buyer if there are any issues with builder, work delays, inspection issues after work/draw phases, and overall turn time from application date to close.

Short answer is "Yes" but there would have to be a few things that would need to fall into place. Best thing to do is have a quick conversation and explain the next move with a Banker or Loan Officer. If you have enough equity in the homes now I would suggest try and refinance to transition the FHA loan into a conventional loan.

That will remove a few issues that you "may" face when getting the other Fannie Mae approval.

Patrick,

To make an offer more aggressive you can request the Bank to do a Pre-Underwrite so that your Mother has a "Loan Commitment" in hand which is a guarantee to close generally within 12-15 days. This supersedes the typical pre-approval letter and again taking cash out of the current home can help offer another aggressive step in a larger Earnest money deposit.

She can use a bridge loan, Cash out refinance , Heloc, or Heloan (2nd to avoid touching a low first rate).

Patrick,

I would have my Mother do a cash out refinance pull out enough cash to put 75% down and pay off the other portion once the home sells. Unless that last $250K would cause her monthly obligations to be too high. When you do a cash out refinance you pay no taxes and if you put 75% down your rate is going to be in the mid to high 5% right now.

There would be No prepayment with a traditional Fannie or Freddie loan so the refi is good on the quick pay off. The other option would be a bridge loan that allows you to pull out the cash to buy the other home and the bridge is set up on an interest only rate until the home sells so its more affordable. if there is a DTI issue you or any family member could go on the loan as a "Non-owner occupant" to help with DTI and again if its paid off quickly when it sells it would be a short duration family would be on to help.

New program for 2024 now offering a way to save investor's money on down payments. Only 15% down for any 2-4 Unit Multifamily investment rental, No more 20%, 25% or 30% down, stay cash fluid and use your funds to buy more or renovate for a higher ARV. Most Banks & Lenders require 20% 2 units, 25% 3 Units and 30% 4 Units not anymore now you can save money with 15% down across the board to be able to buy more homes.

Great rates, No Prepayment penalties, and No recourse! You can buy it, rent it, sell it or flip it no issues.

Rates are dropping so reach out I am always happy to run a free scenario super easy hassle free.

Dennis,

If your looking for some great deals in CA or even Orgeon you should for sure reach out to @AJ Wong