All Forum Posts by: Justin Davis

O.K.,

Maybe that should be a ?. However, Not too hard to get around.

Wasn't sure,

I've already received some flak from admin. No hard feelings. It seems like we could even get along.

He's planning on living in the 2-family. Why would he not finance the property as owner occupied?

Hello EZ,

I appreciate your tenacity. Give me an email if you wish. I am very new in these forums and I'm trying not to get into trouble. My questions are related to:

- Where do the leads come from?

- What is the LTV

- Are they OOC or NOOC properties, etc, etc, etc....

You get the jest....

Kindest Regards,

P.S.

If the BPO is 100,000.00, then the Cost or Price On Value would be 60,000 @ 60%.

Cost On Value refers to the price / cost. LTV only applies to loan to value. In my business it's Cost On Value or Price On Value. Loans have nothing to do with it.

In regards to an investment the cost / price is what counts.

I'm curious,

Why is Cost On Value never mentioned in wholesale discussions? Please shed some light on this!

Also,

I noticed that you would like to finance the closing costs. That implies that you intend on getting 100% financing and then some. Even if a bank will go to 100% LTV they're going to want the closing costs to be paid for (upfront, by you). If it's a rate and term or cash out refi that's a different story.

The exception is if you were to purchase the property under the appraised value. Let's say you pick it up for 95%. Should you aquire 100% LTV financing that would leave you 5% for closing costs.

Remember.... The banks currently doing residential blanket loans will not go above 80% LTV and will not go below 5 properties!

I hope you found this info. helpfull.

In my experience you will have to do two different loans. The few programs out there that will do blanket residential loans are fairly new and 5+ properties are required.

Let's face it. If there's a bank willing to do a blanket loan on only two residential properties the news would be out. I' haven't heard a thing!

I agree with snappynapp,

20% - 25% down is pretty much standard in commercial funding.

It's also a good idea to look into doing a refi in the two family while you have the chance to get it done at owner occupied pricing. The more money you can borrow against your primary in order to put down on the commercial property the better (you will have a much better interest rate on owner occupied loans).