All Forum Posts by: Jeremy Williams

Can you share the area/state you're looking in?  Lenders aren't always licensed to lend in all 50 states, especially for mobile homes, so it's hard to suggest any without that knowledge. 

 Don't mean to bring back a dead post but I just wanted to clarify on the post above.  These reports are great to show past owners and the amount of each mortgage when they were first opened but don't typically show the whole picture.  Since they are automated they won't pull from all known records.  Liens will typically not show up on these types of reports from my past experience using them.  That's where a full prelim/title report will come into play with the little details you'll want to see.

What are the monthly obligations? The mortgage amount isn't important really but the PITI+MI are. Car payments? What are your other monthly obligations lasting longer than 10 months?

Ok let's take a step back here. What it sounds like is that they weren't able to help you because your DTI (debt to income ratio) is too high. If you add up up your monthly debts (house payment, house taxes, house insurnace, car payment, revolving debt like student loans or other payments going on longer than 10 months) and dvivide that by your gross monthly income you will get the magic number.

For example:

Monthly house payment - $800

Taxes and insurance - $300

Car payment - $400

Total debt = $1500

Gross income - $3000

$1500/3000 = 50% DTI

Most loans require you to be at no more than a 45% DTI. Some lenders may allow you to use future rents as income to get you within the 45% range but that will depend on the underwriters. Go talk to more lenders and see how strict their underwriters are.

By the way to pull out equity they will use your DTI to qualify you as well so you may not be able to pull out much. Shoot me a message if you want to go into more details. I'm only licensed for loans in California but can answer some general questions and maybe help point you in the right direction to someone in your area if you'd like.

The only example I have is from when the market was down and I purchased my primary at the time for 145k. Turned it into a student rental and according to the bigger pockets calculator as a student rental I'm getting a $581 Cashflow, 20% CoC ROI, 9.5% Cap.

if I convert it to a single family renting it I would be at $280ish cash flow, 10% CoC and around a 7% Cap.

I mainly invest in Florida now though and wouldn't imagine trying to invest in the Sacramento market with the new arena coming in and prices going crazy.  Definitely would have to do your work in searching for something and fixing it up. Doubt there's much in the way of turn key around.

I believe this wouldn't fly with the IRS unless you're not living there at all.  You can deduct a portion of the expenses with a roommate though.

I'm guessing most will come in and say it's never a bad time to buy if the deal makes sense.  I agree with that statement.

 I'm still looking to buy. It's harder to find deals that make sense but they're still out there.

Hey everyone,

I passed my national loan originator exam with an 85% and now I have to take the California test.  It was easy to study for the national exam because there are tons of books and online tests.  I can't seem to find much information on what to study for the California test.  Can anyone who has taken it give me some insight on where to start. 

All I have right now is a 70 page book that is ridiculously detailed and a 158 slide PowerPoint that seem to be just as detailed.  I would like to streamline my studies to do this over two weeks instead of reading these materials and not knowing exactly what to study.

You can also try calling different small banks/credit unions around your state.  I live in California and when looking for a loan under 40k in Florida I called all around the state and ended up finding a few.  Unless I'm mistaken most banks can lend in their entire state, not just the city.  You'd be surprised how many small banks are scattered around.

I'll be there if I'm in town. Have to check my schedule