All Forum Posts by: Jason Wray

Yes, it can catch a lot of loan officers off guard at first but it can be done. It falls under the Blue Water Navy Vietnam Veterans Act. A Veterans Administration mortgage where a Veteran and non-Veteran co-borrower qualify for a mortgage together is called a joint VA loan.

But like I said to Denis some lenders do not offer this options due to guide lines or investor overlays. We offer it through TFSB but we are VA Direct and Fully Delegated.

Christopher,

Looks like you are in Los Angeles that is not an ideal location for sure when it comes to best bang for your buck and cash flow. A lot of my investors in Cali buy are finding great deals in Oregon, Ohio, Indiana, TN, FL & TX. Majority of these states offer a very comfortable price range and at a fraction of the cost compared to CA.

Depending on what you are looking to get into in terms or Single family, Condo, Townhome, 2-4 Unit Multifamily rentals. Many of these states above offer a good amount of inventory to ensure you find a great deal. Buying out of state may seem a little out of your comfort range but with the help of a good Real estate agent, Banker and team. You can easily find out how many other investors like those here on BP are making it work with little stress and a solid ROI.

To give you an idea you can buy a 2-4 unit in IN, OH, OR and TN ranging from $175K to $350K just depends on location.  There is a lot of gentrification going on in many of those states as well.  In Cali its almost impossible to be in that range plus the taxes are a fraction of the annual costs.

If you ever have any questions or want to talk REI or need advice feel free to reach out or message me I enjoy helping.

Denis,

Yes, but keep in mind some lenders have specific overlays and will not allow. Genrally a fully delegated bank with correct licensing can offer the approval. You can also recieve a loan committee exception as well if the VA loan is ran under the banks "portfolio" program. That just means the bank funds and services the loan but the DTI must have a reasonable blended ratio.

Hi Martina,

A few places come to mind based on your run down of what you are looking to accomplish. Have you ever been to or looked into North Conway, NH. Great location for STR for all year round bookings the White Mountains offers a unique location. Great for summer time camping, white water rafting, hiking, fishing multiple lakes, and ATV.

Winter comes around and you have WildCat, Bretton woods, Waterville, Loon, Pats peak all of these are ski/snow board, tubing mountains, Great shops in the town along with great food, bars and annual events. If you time it you can find a great deal as more people move out or family put their homes up for sale. You also have several people who retire and move south to get away from the snow.

Whitney,

You can avoid having to have a large savings if you buy outside of California.  The idea of buying out of state sounds a little scary at first but it's pretty simple.  Having a plan outlined and following the right steps in terms of financing and best programs is key.  First few properties can be geared towards turn key not much renovations needed to avoid GC/builder hassles.

You can also go for the TLC projects that only need minor rehab but still pass an inspection to work towards a higher ARV to pull out future equity/down payment funds. If you own a primary home its fairly easy to get cash out of it through a refinance or 2nd mtg for start up funds as well.

You can buy as an investment or Vacation home where Investment requires 15% down and Vacation requires 10%.  Vacation must be single family and not 2-4 units so if you can swing the 15% its worth it to get the extra doors.  States that are cost efficient to buy in right now are OR, TN, IN, OH, FL much more affordable than Cali.   

Dimitri,

The agents commission is set up as a credit similar to a seller credit is set up for covering closing costs. Fairly simple you just need to tell the Bank/Lender in advance and make sure the banker communicates with the title company up front prior to closing.

You want to make sure its communicated to avoid issues or delayed closing with title.

The commision is paid on the sale price which is then used as all or partial down payment and can be used for closing costs as well.  You will still need to show reserves if required depending on your DU/LP findings.

FHA is 3.5% down - Fannie Mae is now offering 5% down but neither one will allow you to close in an LLC. In order to close in an LLC you must eitther purchase the home using a DSCR loan or a true portfolio loan. DSCR requires 20% down and Portfolio only requires 15% even up to 4 units.

An alternate way to attack this would be to buy using FHA or Fannie Mae and refinance the loan in 6 months converting it into a rental. There is some special steps to take but it can be done with the right intentions.

David,

California will always remain an Amenity state for its Coastal properties, Hollywood and the attraction to the wealthy. The dreams of making it big will always offer up Cali as a means to a career in lights. This also caters to other countries trying to buy a piece of the limelight and the "want to be seen" crowd. Problem is the Politics, Cost of living, Taxes and overall influx of transient people will continue to push away the middle class.

It's the lower and middle class the feeds the state and its economy not the rich or upper percenters. So when you push out the lower and middle class you will see the state struggle raising taxes, Mansion taxes for example. When you see that it's only a matter of time before certain parts of the state once popular and striving die down.

Take it from a banker who all of his customers who live in Cali refuse to buy and instead go into other states. You cannot make a serious profit on over inflated home prices, extremely high taxes and all HOA fee's are through the roof. If you look at the market data it is now telling the story of what and where to buy. Look at Oregon for example I surprised more buyers have not flocked to the Oregon coast to buy up all of the coastal properties now for sale.

The STR on these properties are through the roof and the sales prices are a fraction of the cost compared to California. You can buy a luxury home on the cliffs of the Oregon Coast anywhere from $500K to $1.5M. That same home in Cali would run $5M-$15-Million and the taxes are also a fraction of the cost.

Maybe it's a little foreshadowing into where the next big markets will surge just like a good majority of CA home owners moving to Nevada and what some call the new Hollywood. I think we can rely on our never ending government to pull a rabbit out of their hat and some new cycle will pop up causing another real estate slump or boom.

2024 brings a new presidential election so buckle in for a crazy show!

 Yes you can do a cash out refinance on any home.

Chrissy,

Easy, just do a cash out refinance since you have no mortgage your LTV will be low and you will get a good rate. The rate on the cash out refinance will be much lower than a Heloc rate and since it will be based off of a 30 year amortization the payment will be much lower.

Delayed financing offers 80% LTV cash out if you have owned it for less than 6 months - But, you cannot use a new appraisal. Delayed financing uses the purchase price plus any renovation receipts and will use 80% of that number. If you owned them for 6 months or more you can use a new appraisal and get more out.