All Forum Posts by: Jon Puente

Hey Devin, 

I am actually looking to hire an MLO and would love to talk on the side if interested.  I love that you have a military background and are eager to learn the mortgage business!  It is definitely not easy, but I am willing to train. Fully remote position.

Thank you for your service to our country!!! 

Hey Gurleen,

Both have advantages, however it depends on if you have enough cash to close and do what you need to do post closing (repairs, maintenance, or just living expenses). 

My personal opinion is to do the 544K and ask for 25K concessions and use that to buy your rate down + pay closing costs.  If you were able to get a 4% today on a Conventional loan, and then refi after 24-36 months, that would be pretty sweet!   This would be called a 2-1 Temporary Rate Buy-Down and as long as its a primary residence, you are good. 

Great Question!

Hey Jace,

I would go to Youtube.com and look up Pace Morby "Subject To & Seller Finance" strategies.  It's very simple to understand, however difficult to execute properly.   Long story short, the owner of the home would become the lender, and you would pay a note to them with customized terms that fit both parties involved.   Or on Subject To, you take over someones mortgage payments as they sit, and transfer title of the property in your name.  Easier said than done!

Hope this helps!

Hey Austin,

I appreciate your service to our country! You mentioned using a VA loan and being funding fee exempt, which is great! The whole purpose of using a VA loan is that you can do 0% down, with no PMI! Truthfully, I would not put any money down using a VA loan because there is no point other than reducing your payment.

If you are doing a Conventional loan, then yes you would do 3%-10% down and can decide on a 20YR or 30YR loan, which ever fits the budget.  However, I will say this:  The chances of you being in this exact same loan 5 or 10 years down the road is almost 0%.  You will end up refinancing into a better rate with more desirable terms, so this loan would only be temporary with the market the way it is!

Great Question!

Using a 2-1 or 1-0 Temporary Buy-Down is a cheat code right now using seller concessions to buy down the rate.  You get more bang for the buck AND you can still end up paying some or all of the closing costs in addition to the rate buy-down.  Permanent buy-downs can get expensive depending on the loan type and amount.  The only way I would be buying a house in this market is getting a 2-1 or 1-0 buy-down using seller concessions, and then cover most of my closing costs with the rest.  You will be able to refi later down the road as inflation decreases. 

Hey Damian,

I would use 15% as an average for vacancy on MTR when doing calculations.  The truth is this:  You have plenty of time to find the next tenant and ideally, you will have done all the necessary repairs ahead of time to make the property "rent ready", so you will not need to do repairs in between tenants. 

I think 15% is VERY conservative.  I am doing an MTR coming soon in 2023 and my property manager has 100% occupancy, no issues at all. It also depends on the market you are in... I am in Charlotte, NC and its white hot here with real estate in general. 

I would ask PM's in your area who specialize in that space and get an accurate reading for your region.  I wouldn't think St. Pete would have any issues at all with occupancy.

Great Question!

Hey Howard, 

The only way I am increasing rents is in 2 scenarios - 

1) You are not cash flowing or barely cash flowing, and need the money to make repairs and justify extra expenses on the property.

2) You are okay knowing that if you increase the rents, you might lose your tenants and have to go through the hassle of finding new ones (should they decide to move on). 

If the answer is yes to any of those questions, then do it.  However, if you have good paying tenants and they maintain the property well for you, then I am not sure its worth it.  Maybe a slight increase to $1700 is okay, but $150 seems to be a lot, especially given the market conditions.  Do not chase a quarter and end up losing a dollar.

Great Question!

Hey Jack,

You should be fine on this.  As long as the lender is getting paid on time, the chances of getting a due on sale clause RARELY happens.  And in this case, it was because you are inheriting a property due to a family member passing.  Nothing you can control here.  I would just make payments as usual and do not notify the lender. 

IF (and a very big if) they audit the books and go through the hassle of tracking your situation down, then worst case scenario you refi and move on.  But I doubt that happens.  I am not an attorney, however I am answering this by what I would do in your shoes. 

Great Question!

Hey Mitchell,

I am a mortgage broker here in Charlotte, been here for 5 years and own 2 properties (will be 3 come later this year).  Would love to talk real estate and see how we can help each other grow!  I think you have a great plan!

Hey Jason, 

I believe there are lenders out there that will use STR income to qualify, however it's very far and few between given how new and "risky" it can be in a banks eyes. However, I reached out to a few people and will try to see if I can find one! Please keep me updated with your search as well, because I am curious about this.