All Forum Posts by: Jay Jones

Quote from @Larry Turowski:

@Jay Jones I wouldn’t call this gone bad. It’s a hiccup. You’ve got over 60k of equity from the sounds of it.

Worst case scenario, sell the house. You could talk to your tenant, explain the situation, ask if they could leave, and if they balk say, “Look I’ve got to sell it, how about if I cut you a check for 2,000 at closing. We can put it in writing. You’ve just got to keep the place neat and tidy for showings.”  Then go up from there if they balk. 

Or do some research for asset based lenders—hard money lenders for landlords and see if you can get rates you can live with. 

Thank you, I’m exercising one last lending  option before having to go that route. If it doesn’t go well I’ll let my tenants know the situation. 

- Do you think I should mentioned it to them just in case or should I wait until my lender goes through the application and underwriting process?

Quote from @Malcomb Stapel:

@Jay Jones I'm guessing they denied you because of your low credit score? Did you sit down with a lender and get pre-approved before you began down this path? My only thoughts were find a co-signer to help get the loan approved, or find another bank. As for the ARM, it will be locked for at least 5 years, you could sell the house after that.

 Hey when I asked two lender how could I get pre approve they both told me to wait until 6 months. I guess I should of asked to pre qualify like a regular new purchase. 

I tired the co borrower route and unfortunately that won’t be an option.

I had someone reach out to me regarding a non QM Loan which may be an option . Never heard of this type of loan .

Hi, I am in a pretty tough spot I have flipped some properties successfully. I decided to do the BRRRR strategy on this one house. I currently have it rented as of March 2022 for $1381 section 8. But when I went to refinance 6 months later I got denied for 30 year fixed loan.

Financials :

I have a hard money loan on it for $106K at 12% interest only, interest only payments start in June. The house appraised for $183K and if I was approve my loan amount would been $137K and I would of got back $18K in cash. My middle credit score is 638 (but I had a lot of late payments a few years back and only 1 late payment in April 2021 which hurt me)

Do I have any other option as far lending someone mention a non traditional loan but it would be an ARM (yikes) so

Any ideas:

*Should I file a notice to quit for the tenants let know I have to sale I’m in the Michigan market  . Put the house up for sale as I would still profit from the deal . (This option just sucks for my tenants) 

* Try to refinance into a non traditional loan 

* go to my hard money lender let them aware of the situation and see if they have options for me?

** option to suggestions**