All Forum Posts by: Jast Collum
Jast Collum has started 4 posts and replied 10 times.
Post: Looking for a fixer upper deal in Nassau county.
- Posts 10
- Votes 2
Hello Eugen. Ideally 3+ beds w/ basement in the Levittown/Hicksville area.
Post: Looking for a fixer upper deal in Nassau county.
- Posts 10
- Votes 2
Hello to all the big pockets here.
My business partner and I are looking for our 1st investment property. Ideally it would be a fixer upper that we will make our primary residence for the next 1-2 years while we rehab it along the way…….then make a rental property. Anyone got any leads??
Post: Looking for mortgage broker for my personal residence.
- Posts 10
- Votes 2
Quote from @Dave Skow:
@Jast Collum- let me know if you would like a loan agent referal for your area that can help - thanks
yes. Some referrals would be great. Much appreciated.
Post: Looking for mortgage broker for my personal residence.
- Posts 10
- Votes 2
Hello all.
Newby investor here. Looking for a Long Island mortgage broker for a cash out refi or other vehicle that would accomplish the same. I have some equity I’d like to pull for a new roof and to pay off some other debts. Please hit me with some contacts. Thank you.
Post: Decisions decisions decisions…..please help.
- Posts 10
- Votes 2
Quote from @Stephanie Medellin:
@Jast Collum Does the 300k balance include the back payments owed? With a 550k value, a cash out refinance will be capped at 440k. Your 1st + HELOC is 338k, leaving about 100k, less closing costs. Is that going to be enough cash out to pay everything off and make the improvements to your home?
Personally I'd have a hard time turning down 50k in assistance, but restructuring your debt can really simplify your finances, so that's a tough decision. I'd be sure to really explore other personal loan options, a fixed rate second mortgage, or even raising the credit line on your current HELOC before deciding to refi out of the 4.1% and pass up the 50k.
Rates have continued to move up...please make sure you're getting an accurate quote to calculate your numbers. 6% for a cash out refinance at 80% LTV might be a low estimate depending on your credit score. The generic quotes you see on most internet sites don't usually apply to cash out refinances. Once you find out the real payment for taking cash out, then you can evaluate if you're saving enough to make debt consolidation worth it.
Post: Decisions decisions decisions…..please help.
- Posts 10
- Votes 2
Quote from @Ned Carey:
@Jast Collum if half of your income left during covid what is the situation now? I want to reiterate what @David Shakhunov said, get your personal finances in order as #1 priority.
Post: Decisions decisions decisions…..please help.
- Posts 10
- Votes 2
Quote from @David Shakhunov:
I see. If you decide to go with option 3 ("trial" payments) and declining 50K, then make sure you get HELOC that way you can keep your current rate of 4.1% and have a variable rate for the HELOC. With HELOC you can take money as needed basis instead. Most are require to pay interest only payment for the first 10 years and then interest + principal on years 11-20. The downside of HELOC is that the rate is variable.
Also keep in mind when the state pays 50K of deferred payments, your house equity doesn't increase by 50K. Most of the 50K will go towards the interest and smaller portion towards principle. Most likely it will be 15K/35K split (maybe even smaller split). So you are only getting a smaller chuck of 50K towards your equity.
Looks like option 3 might be the best approach.
Post: Decisions decisions decisions…..please help.
- Posts 10
- Votes 2
Quote from @David Shakhunov:
If you want to get into the real estate investing I would fix the personal finances first. Why wasn't the mortgage paid? Do you have some kind of savings? Also sounds like you have some kind of aux. debt as. There will be a lot of unexpected expenses once you own a real estate investment property. So I would figure out how to fix your debt and personal finances before jumping into the investing. Maybe the best option for YOU is to take the 50K and work on paying off your debt and save up for 5 years. If your income is/will be high enough you can get approved for a second mortgage. It might be smaller amount that will price you out of local market but you can explore option investing in a different state. OR Maybe it is better to go with option 3 and push payments and use the equity to invest in the real estate but if you are not ready financially, this move will hurt you. I think you might know the answer if you analyze your current situation in a greater depth. I can't give you a solid recommendation since I don't know all the details.
Thanks for the response. So half the income paying for the house was lost durning covid and my mortgage company offered differed payments by way of forbearance, which after everything said and done amounted to about 50k worth of unpaid mortgage……which is exactly what NY state will pay on my behalf. The reason I want to refi is to pay off my car loan my 2nd mortgage and 13k worth personal loan. This alone would save me a ton because all the interests are higher (much higher in some cases) than it would be at the 6% a redi'd mortgage or heloc would be. Ultimately I'm looking to bring my DTI ratio down and just simplify my bills. My main concern is the timing of everything. The longer it all takes for more it will cost to borrow money and possibly the less my house is worth.
Post: Decisions decisions decisions…..please help.
- Posts 10
- Votes 2
Hello BP.
My personal house has been in forbearance since covid. In March of this year my mortgage company instructed me that forbearance would soon be ending and I had a few options.
Option 1. Pay off the entire mortgage bill. (Approx 300k)
Option 2. Come up with the payments that were missed durning forbearance (approx 50k) which would bring my mortgage current, allowing me to refi my house.
Option 3. Make 3 “trial” mortgage payments and then have my mortgage modified, extending my mortgage but keeping payments relatively the same as they currently and absorbing the back pay into the modified loan.
I chose option 3………..however.
After making my 2nd monthly payment the NY state homeowners relief fund (which I applied for in February) agreed to pay up to 50k towards my back mortgage payments which would bring me current.
My plan for the last year or so has been to cash out refi my house, so that I can do my roof and pay off some other ancillary debt, I have a lot of equity in the house. I have been unable to do this because of the forbearance though.
Once NY state informed me that they would help, my plan quickly changed and instead of modifying my mortgage bringing it current and having another 50k worth of equity injected into the house seemed clearly like the no brainer route.
Unfortunately after a conversation I had with NY state today, I learned that if I accept the 50k I can not sell, transfer deed or refinance the house for 5 years without paying the 50K back…bummer.
So here’s my conundrum. being that interest rates are steadily going up and it looks like that will bring housing prices down.
Do I?
1. Take the 50k from NY, bringing my mortgage current, then immediately cash out refi and pay the 50g back? This would be the most timely option.
2. Forgo the 50k and instead sign the loan modification contract and wait the 3 months it would take to be eligible for a cash out refi…..this would take the extra 50k of equity out of the equitation though
Or
3. Take the 50k and then take a heloc towards my home equity which I do not think would alter the mortgage therefore not triggering the 50k pay back clause.
My numbers are as follows. current mortgage @ 4.1% fixed with 300k owed. House is conservatively worth 550k. I also have a 2nd mortgage for 38k @ 7.49% adjustable
I’m trying to get myself into a position to start my real estate investing journey and all this has thrown my head for a loop.
I really hope this all made sense. And thanks a million for getting all the way to the end. Any words of advice of strategies would be appreciated.
Business duo (lifelong friends) who through cryptocurrency and a medical malpractice suit find ourselves with a few million dollar liquid. Looking to spread our good fortune into rental units. One of us is relocating to the Phoenix area so we figure we would start there …..instead of the NY metro area, where we currently are. Taxes make most of what I’ve seen in NY unfeasible. Just looking to introduce ourselves and welcome any criticism or encouragement local investors have. Hoping you all have a great day.