All Forum Posts by: Joe Norman

ARV can be (and should be) estimated before repairs are done for your own deal analysis.

If you're using a traditional loan then they don't care about ARV, they only care about the current value of the property. If you're using Hard Money or a Renovation loan then ARV will play into the loan underwriting.

ARV is 100% not guaranteed. Market conditions change over time.

The amount of money you should borrow depends on your own deal analysis, goals, and risk tolerance. However borrowing money so that you can "afford" to borrow more money sounds risky to me.

Everyone wants to scale quickly, however sometimes the more prudent route is to invest slowly and only when you can afford the risk.

You have tenants who you can't speak to, they don't use email, and you're out of state...and you still want to self manage? I think you're setting yourself up for failure here man and suggest you reconsider the self management. Either way, good luck!

No, there is not. If she wants to do this "Legally and ethically" then she needs to reside in the home she purchased with an FHA loan for at least a year.

Google "marilyn mosby mortgage fraud" to read about the mess Baltimore's States Attorney is in for claiming owner occupancy on a home she never intended to live in and then your GF can decide if she wants to take the same risk

It sounds like either (1) you're not talking to the right local lenders or, (2) this isn't a good deal in the first place. I suggest calling a few more local HMLs, if they won't lend you the renovation money then get their candid feedback on why not.

Good luck!

In general the buyer can't unilaterally postpone settlement, and in most cases it makes sense for the seller to work with them if a small delay is needed. Thats about all the advice I can provide without more detail on your specific situation.

This definitely sounds over complicated, and there is too much room for gray area when it comes to actual costs to be recouped. Why not just pay him as a contractor and keep 100% of the equity and cash flow for yourself?

IMO, it depends...

If this is a single member/sole proprietor LLC then I would go ahead and set it up yourself.

However, if you are forming this LLC with a partner then I would make sure to get a lawyer involved to create your Operating Agreement.

Good luck!

Yes the rates are a little higher, but what you're paying for is to have your student loans forgiven in 5 years which is incredible!

You need to compare your options - are you going to pay more in interest (compared to an FHA loan) then your forgivable debt over the next 5 years? I suspect not, in which case this can be a great deal.

Find yourself a mortgage consultant who is familiar with SmartBuy so that you can see your options. I've got a great referral for you if you want to PM me.

How far will $28k go in your market? If you can use that to buy a multi-unit (4-plex or less) and house hack then I think thats a great way to start off. Good luck!