All Forum Posts by: Joseph Coleman

@Caroline Gerardo
Could you elaborate a bit more on what is incorrect information? I am not sure if you meant to tag me but understanding what you are referring to could be valuable for the discussion around loan assumption. 

@Chris Martinez any updates on your VA loan search?

@Carlos Malaver Jay Hurst (above) is a great resource on this.

You can also search for Home Equity Loans in Lender Finder
(^^^see toolbar above^^^)

Aliyyah Carter 
I agree it depends on your situation. But here are a couple of things I have learned, 

-A full gut remodel is harder to estimate because you never know what is hiding behind the walls and what is required to bring it up to code. You could run into electrical problems, mice problems, water problems, foundation problems, mold problems and plumbing problems. Having a large margin of safety is a good idea. For a gutted remodel, I would strongly prefer to purchase a property that is already gutted as opposed to one that is finished.
-A cosmetic renovation is very common with the flips I have seen. I purchased a live in flip that looked great only to discover the original work was covering up a lot of problems. For this reason, I think I will steer away from purchasing remodeled properties in the future unless I can knock down the walls to see what is underneath.
-It seems there is also a personality component to this question. Thinking like a flipper is hard for me. I have a hard time using substandard materials and doing anything that I know is going to cost more in the future. So, it is hard for me to add value in a way that is profitable in the short term. 

 

@Chris Martinez

I have heard that local title companies may be able to get you a list of properties with VA and FHA loans. I have heard this is "public information" and there are a lot of companies that use loan information to try and market scams and various services to new home buyers. So I would think there is a way to get a list.

You may also want to target loans within a certain age so you can target those with a reasonable assumption gap. For example loans from 2019 - 2021 could be more likely to have lower principal that you will need to pay off and a lower interest rate than loans originated in 2022 - 2023. 

If you can get a list, you will also probably want to cross reference this with homes active on the market. 

Not all agents know that they should select the loan type when listing on the MLS (it is an optional field).

It also takes longer to close when you assume the loan, so it's usually best forsellers who are willing to wait a little longer to close. 

https://assumptionsolutions.com/ is a company that could help as well  for understanding how the process works. 

Thank you for your post Mike and welcome to the BP forums! 

I think your approach makes sense.

A couple of resources, 

1. It would probably make sense to establish relationships with agents and lenders and ask a lender about how you can best prepare for your next purchase. For example, how you file taxes now could have an impact on your ability to get a loan in the future. 

2. You may want to look into banks that offer loans designed for medical professionals. 

3. Brandon's intention journal could be helpful - link to book. 

@masonweiss

This is an interesting new product. I would work with a lender to have them run both scenarios for you so that you can compare and make the best decision for you. Most notably, I think the biggest difference will be the APR. FHA is generally a little more expensive but it depends on your situation.

BiggerPockets has a lender finder tool that will help with finding an investor friendly lender. Link to Lender Finder. 

This is more of a legal and accounting question. 
These resources could be helpful, 
https://aaplonline.com/
https://geracilawfirm.com/
https://store.biggerpockets.com/products/lend-to-live

Mark Hu
I think this could be helpful. You could always send Craig a DM. 
https://www.biggerpockets.com/users/craigo31

@Havan Surat

Thank you for your question. I see a lot of investors asking this question. After all who doesn't want 100% financing?

Short (practical) answer: No.

Long answer: You could, but you will need some unusually great compensating factors. For example, I know a couple lenders who will go up to 100% for experienced investors who are getting properties far under market value. Or if the investor can put up more collateral. 

This question is like asking if you can get into Harvard with a 3.0 GPA. Maybe you can if you already have a perfect SAT, make a large donation to the school, and have a personal relationship with the head of admissions.