All Forum Posts by: Joe Kern

Hey @Rick Estacio - Point Pleasant 

Hey All! just about wrapping up closing on a house, currently under contract. Looking to fund via 203K an addition on top of a recently renovated ranch...most of the plans have already been approved by previous owner already! Seeking a licensed/insured General Contractor/Architect to bid on this project.

Thank You!

Joe

7325754571

Hey All! just about wrapping up closing on a house, currently under contract. Looking to fund via 203K an addition on top of a recently renovated ranch...most of the plans have already been approved by previous owner already! Seeking a licensed/insured General Contractor/Architect to bid on this project.

Thank You!

Joe

7325754571

Hey All! Been searching the market (NJ) for the past 2-3 months, have been putting offers down, even getting to attorney review just to be told the seller is going with another offer "way" over asking price AND with the inspection/appraisal contingencies being waived...My question is how are these people casually waiving inspections like this?? Assuming at this point i'll need to start driving around or searching off market deals...MLS just isn't realistic in NJ.

Hello ! Currently in process of purchasing a multi family , seeking a licensed contractor( s) for initial scoping , rehab estimation and eventual execution of the rehab itself ..any references are much appreciated ! This is for north NJ area , Hudson/Bergen/Passaic county’s.

thanks!

Hello All, soon to be a first time home buyer and would like to know how soon one should consider reaching out to a real estate attorney? immediately? when it's time to sign the purchase contract? Also- seeking a NJ attorney reference.

Thank You!

JK

After you purchase using a FHA, are there hard requirements prior to qualifying for conventional refinance ? I.e you need to have atleast 20% equity ? What if you don't have the 20% , how can you still refinance into conventional to free up the FHA?

thanks for the insight @Kyle Mccaw, I was looking at a 203k option given it provides the ability to roll the rehab cost into the total, I guess the downfall is the FHA aspect of it requiring me to live on site for atleast the 1 year for example. I'll need to research hard money options, as this seems to be the best option although a bit risky!

Hey @Matthew Porcaro - Hope all is well! just wanted to revisit this discussion after reading and re-reading into your responses posted, more specifically from the following expert (listed below). The 203k process makes sense, all in for 350K (73% ARV), then you refinanced into a conventional. My questions are : when you refinanced, I'm assuming you refinanced for the new appraisal (ARV = $480,000 conventional loan) thus paying off the 203k loan + rehab at a better rate PLUS the 27%equity cash out? You mentioned you didn't choose the cash out option..so can you dive into that decision further? Did you refinance for the total ARV amount of $480K ? could you have done a cash out refi and paid off the 203K /rehab AND taken the 27% cash to continue investing elsewhere? Again, thanks in advance for sharing your story !!!!

1. I purchased the house for $270,000 with a 203k loan, that allowed me to wrap an additional $80,000 of rehab costs into the mortgage. My all in cost was ~$350,000. After I finished the rehab, the property was reappraised for $480,000, which meant I was in for 73% of ARV, and had 27% equity in the property.

From there, I refinanced into conventional, to get rid of the PMI and the FHA loan off my name. I also got a slightly better interest rate (4.45). I didn't use a cash out refinance for the equity, instead, I use a HELOC that I opened up about a year later after I initially refinanced.

Hello All!

Starting out the investment journey, after some research it appears the typical approach to the BRRR method is to use cash or some form of hard money to purchase the property and kick off the BRRRR process. My question is , can you still BRRRR with a 203K FHA, conventional , or really any form of obtaining a loan initially instead of having a large some of cash up front ?