All Forum Posts by: Justin White

Hi Sarah!

I've been working in real estate for the past 4 years in Sonoma County, so let me know if you have any questions or need any contacts for local resources. 

Other than that I am actually moving to Illinois this summer and am planning on diving into investing out there as well, the starting price (as you well know) is much lower than it is here.

Hi Ally,

Some info I didn't mention from the last post, I would go for the 5% conventional insured loan. Like you say, the MIP can go away after the principal is brought down enough. I'd try to find a duplex that needs to be updated in that price range that you can afford, and the numbers make sense, and go with that. Rent out the other side, and ideally have less coming from your pocket each month than you do from rent at the moment.

Have you been employed by the same employer for the past 2 or more years? That is a typical requirement of these lenders as well.

HI Ally,

I Went through a similar dilemma a few years ago, I decided to shovel all the cash I could each month to pay off my student loans. They paid off quickly (30K in 5 years making not much money) but in hindsight I wish I would have bought a place that I could have rented out to roomates, or fixed up over time, or bought a duplex, rather than shoveling all of that money into my student loans. Especially because the payment was relatively manageable.

If I were you, I would either buy a property that you could rent out part of it to roomates, or the other unit to renters and have them help make the mortgage payment (and ideally pay less than you are in rent at the moment). 

This might throw a wrench in it for you but...I see you are in North Hollywood, so most of the properties you would be looking at FHA financing or something that is less than 20% down, with that in mind there is a chance that the lender would require you to pay off your student loans to get the financing. I would suggest going to some loan officers/mortgage brokers and seeing how much you could qualify for, if you would need to pay off the student loans, and what the payments WITH PMI would end up being. That way you have a framework or some sort of idea to try and run some numbers when thinking of buying.

HI Constance,

Congrats on saving and being ready to take the step!

It sounds like others have covered quite a bit, but I would suggest walking in and talking to any regional/local Banks or Credit Unions. Since these would be considered commercial financing (more than 4 units), and the valuation and underwriting is different than residential, you may find a local bank that is willing to work with your situation. Just my $.02

Hi Michael,

If you don't feel like going the partner route, you could find family or friends that has some cash that isn't doing too much and see if they could lend you the money for a short term loan while you do the rehab and sell. If they don't have that in spare cash, many people can borrow from their 401K, not withdraw, borrow. Then you would simply just repay your friend/family to their 401K acct.

1. Get a contract signed

2. Bring it to the title company to open escrow 

3. Bring in Check for EMD with contract

4. Wait till title company has paperwork ready

5. Sign paperwork, deposit remaining funds

Your finished after that, assuming nothing goes funky in the process

Also, if your planning on buying/selling in the future it will pay off to have a good relationship with an Escrow Officer, they are a really good outlet for questions and getting this work done for you

You wouldn't have to even meet with the seller you could come in separately, or you could just e mail in the signed contract. They will create all of the docs and record the docs to transfer ownership as well. all you will need to do is sign and pay.

The easy route is more costly by having someone else do the work (title company or attorney), if I were to try and flip properties, I would even more go through an attorney or title company just for the ease of reselling, and not having any complications upon resale. 

I would be very hesitant to do it myself, after seeing so many screwed up titles from people doing deeds them self. 

Like I said earlier all states are different, I am in CA so maybe someone in FL has experience in this area and can help you out.

Yes you are correct, but the title insurance company will most likely charge you for a prelim/title search (we charge 500/per title search). You can ask for a property profile and copy of the most recent deed and work off of that for filling the documents.

@Uriah D.  is right, you are protecting your investment by going through an attorney or title company and getting title insurance. I have seen some bad situations by people trying to do their own title work. Ambiguity can create legal fees down the road if/when you try to sell the property.