All Forum Posts by: Kyle Deutschmann

Quote from @Tom Gimer:

@Kyle Deutschmann You're not going to find a good title company to handle FHA and VA sub-to work because by definition they would be ignorant of federal guidance on the issue. Is ignorant good? I don't think so. Before too long there will be a default, foreclosure and PMI claim… then an investigation. End result is they'll be blackballed from closing transactions involving federally backed mortgages.

Actually took me a while to research, find and post that guidance. If I recall it may precede the internet. 

Thank you for your input. If you read my original post I said I am not referring to assumable FHA and VA loans.. 

Quote from @Andrew Postell:

@Kyle Deutschmann go to your local real estate meetup groups. If we know what we need, but need it in our area, we need to go local. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally for this. That’s the best bet.

 Thank you.. I hosted a meetup with ~ 30 in attendance this past Thursday. There was only one title rep, and she wasn't super familiar with closing a property subject to existing financing. Have you worked with any title companies in your market who has helped your investor clients close these types of deals? Or from your experience in lending, have you ever heard of lenders calling these loans due on sale? I heard it can take such a long time and cost to foreclose that most of your investors would rather just turn a blind eye and keep accepting the payments as long as they are coming in on time. 

Hey BP community, 

For anyone who has done a subject-to deal in central MD... who is your go-to title company for this type of transaction? 

Also, has anyone had any issues with lenders calling these loans due on sale? How do you get around this and not screw over the seller? 

I understand VA and FHA loans are assumable... This is not what I'm talking about - I'm referring to buying a property subject-to the existing (conventional or commercial) financing. I've seen a credible title company close one of these in Nashville where I used to live, but have never dealt with this in MD where I currently live.

Thank you in advance for your comments and suggestions. BP typically doesn't allow self-promotion, so if you are a title rep who has experience with this, feel free to slide in my DMs. 

Hey Frank, welcome and thank you for your service! This is definitely possible, but it sounds like your DTI might be a bit high to purchase a primary residence unless you use a co-signer or pay off some of your other debts first. However, if you use a DSCR loan for the rental property then you can qualify based on the rents the property will/is currently bringing in compared to the monthly payment (PITI+HOA) instead of qualifying based on your DTI. I've been told DSCR (non-owner occupied) rates are around 8-8.5% last time I checked (probably with a point or 2 upfront I'd guess) compared to around 7.5% for a conventional primary residence loan or ~6.75-7% for a VA primary residence loan.

I'd recommend talking to both a lender who specializes in DSCR loans as well as someone who specializes in VA and conventional loans to compare options. I have some contacts for both in the DMV area if you need a recommendation. 

Quote from @Ali Ally:

How did I miss this? Was looking for meetup in DMV area. @Kyle Deutschmann, I did fill out the Google form but also wanted to voice a suggestion here to consider switching weekdays. I can’t make Wednesdays. Would love to attend any other day. Thanks for consideration! 

 I think @Jack Seiden and I were thinking of doing this every 2nd Thursday of the month. If anyone else has any suggested changes or other location suggestions please DM one of us. We chose Laurel since it's roughly halfway between DC, Baltimore, MoCo, and Annapolis. If you know of any local bars/restaurants/breweries in central MD with a space big enough for 25-35 guests we'd be happy to consider other locations. 

Thank you all for attending our meetup yesterday evening! We had a great turnout, and it seems like there was some solid networking going on!

We had close to 30 in attendance including 'investor-friendly' agents, hard money/DSCR lenders, a settlement officer/1031 exchange intermediary, contractors, wholesalers, flippers, and landlords.

If you would like to receive an email reminder about the next meetup, please fill out this short Google Form: https://forms.gle/4oP7cUfLLZgMjDuWA (please note, if you filled this out yesterday on my iPad or signed up on meetup.com we should already have your email). 

Quote from @Kyle Deutschmann:

Quote from @Jack Seiden:

Me and @Kyle Deutschmann are proud to bring back Central MD REI Social. A truly informal meetup of investors of all types and experience levels, No sales pitches (In fact I might talk you out of buying), Good Food, Good Beer and Great People! Come hang out with us!

 T-minus 9 days away! If you haven’t yet, please RSVP. We have another 10-15 RSVPd elsewhere so it should be a good turnout it seems like! 

Also in case you’ve never been here, here is a link to the brewery’s website/menus: https://jailbreakbrewing.com/

T-minus 2 days! Invite your friends, realtors, lenders, insurance brokers, etc! The first 3 people who show up will get a free real estate book from my library

Quote from @Dan Kim:

Hello BP community!

My first RE project will be a fix and flip, just to start gaining capital before getting into buy and hold properties. My question to start is, do you find it best to use hard money to fund the purchase and renovations, or using renovation loans i.e. FHA 203 (k), Fannie Mae Homestyle loans?

Thank you for any advice!

I actually disagree with some others on here… I used to be a licensed Loan Officer for ~ 5 years. If you find a GOOD lender (not always the lowest rate…) then a conventional HomeStyle or FHA 203k loan will be your best friend as a new investor.

Benefits include:

- lower money down (Fannie Mae allows as little as 3% down of the ARV or purchase plus rehab costs, whichever is lower) for an owner occupant.

- lower interest rates vs hard money 

- you can use a HomeStyle conventional rehab loan on a 1 unit investment property (usually max 80-85% LTV but still better rates than hard money and you're locking in long term financing upfront rather than paying a second set of closing costs to refi into a DSCR loan)

- conventional rehab loans do NOT require a HUD consultant

- your lender has to approve your rehab plan and the ARV (according to a 3rd party appraiser) MUST be equal to or greater than your purchase + rehab. This ensures that you as a new investor don't go overboard and spend too much money thus being "under water" on your mortgage.

If you need a conventional rehab lender I know several who do these well. I also have several fix and flip lender contacts in the central MD area. 

Quote from @Tom Gimer:

@Paul Gupta BP Pro and Premium members (I believe) get access to landlord forms, drafted by local RE attorneys, for all 50 states plus DC. These are found in the Perks section. Leases, disclosures, required forms, etc. 

If you are a landlord, upgrading pays for itself instantly, IMO. 

I’ve used BiggerPockets leases before as a pro member. They’re not bad. I’d take that, add what you want, and find an attorney to review it then set it up as a template on DocuSign or a similar platform if self managing. I’ve also used Eversign.com which offers ~ 5 free e-signs per month. 

Quote from @Marcelle Thong:

Hello my name is Marcelle and I live in Maryland. I'm new in Real Estate investing and I'd like to connect with local investors. Thanks!

Hey Marcelle, welcome! Id recommend joining the Maryland Investors Network on Facebook. They have about 20,000 members, and I’ve found several of my preferred vendors from this group such as my go-to home inspector, local lender recommendations, etc. 

https://www.facebook.com/share/tQB5UjCjnNLfFLKe/?mibextid=K3...