All Forum Posts by: Lew Payne

Those same homes that "are not plumbed for recirculation" generally are also not wired for 240V in the bathroom (where the shower is), or enough amperage at 120V to sustain an electric on-demand tankless heater with sufficient capacity (after calculating winter drop temperature vs flow rating), much less plumbed for natural gas to support a non-electric model (which is the only type I'd recommend).

Correct... but the person asking is in Pennsylvania, and homes in the US are already plumbed to distribute water from a central location (the water heater), rather than for on-demand use at each hot water tap.

If you are up to spending $12, try the following low-flow shower head:

Delta (available at Home Depot)

Although I live in upscale homes (and my wife will not allow me to equip them the way I used to equip my more frugal homes), I love that shower head!  You will find that the flow rate really does make a huge difference in how long your hot water lasts.

We have debated about tankless water heaters for some time now.  The cons are that, unless you choose a hybrid unit (with a built-in mini-tank), you can't effectively use your recirculation pump.  A recirculation pump is what keeps the hot water flowing through the hot water pipes, even when you're not using the hot water; what this means is that when you actually turn the hot water faucet on, you get hot water without having to wait for the now-cold water in the hot water pipe to run off.  In other words, a recirculation pump does exactly what it says - it recirculates your hot water in a closed loop, so that you'll have hot water when you turn on that tap in a part of the home furthest from the water heater.

So, what are the problems with tankless heaters?  As I said, not all tankless heaters lend themselves well to a true recirculation pump (some have to constantly cycle to service the recirculation pump - defeating the energy savings).  Another problem is the fact that these are on-demand systems... they have to detect water flow (in the hot water pipe) in order to trip.  If you want a weak stream of hot water (or mixed hot/cold), there may not be enough flow to trip the tankless heater.  That, in itself, seems to be anti-conservation - you can't simply use as "little" hot water as you please - since the tankless heater may not sense it.

Rinnai seems to be a good brand (it's the only brand my commercial HVAC friend installs).

Bear in mind, it is sometimes easier to relocate the (tankless) water heater so that it is sitting against an exterior wall (so you can easily vent it) and re-run the plumbing to it, than trying to get the necessary large vents (which typically cannot be shared) run to an exterior wall.

Now that the federal government is involved (see FHFA Issues Warning on Super Priority Liens), this ruling won't last long - as federal legislation is adopted to protect the interests of quasi-governmental agencies like FNMA and Freddie Mac.  What I see as particularly problematic is the fact that (at least in CO) super priority liens need not be recorded!  As a result, the mortgage lender is never notified of the buyer running in arrears.

Issue specific instructions to the escrow company delineating the requirements for your side of the transaction.  This includes when and how earnest money is released - or refunded to you, as well as subject-to terms (such as the issuance of a title binder), etc.

No matter what "paperwork" a realtor or seller requires of you, this does not preclude you issuing "paperwork" of your own in the form of escrow instructions, binding the transaction to your terms.

14% APR, plus 2 points origination fee, and another 2 points if the loan goes beyond 90 days. That is a typical interest rate for a short-term (6 month balloon, zero monthly interest payments) "100% of purchase price" loan. If monthly interest-only payments, 12% APR.

 That sentence makes no sense.

Since you are, in effect, making a public statement in support of the CRUT, please post the down-sides of the CRUT so as to present a fair and balanced opinion to go on.

Why would a CRUT be better than a BETIR/BDIT that has been stripped of all HEMS provisions and made fully discretionary, per the Restatement of Trusts (Third)?

It is unfortunate that some podcasts (and persons) think that integrity and scrupules are just something that gets in the way of profits.  Before delving into any of these schemes, one should take a hard look at the legality and morality of such schemes.  One thing you'll find about these questionable characters (some of whom are on BiggerPockets) is they operate from a foundation of hypothetical interpretation - conjecture rather than fact.

Let's take a look at the facts, by examining the exact wording of a standard FNMA/FHLMC UNIFORM INSTRUMENT Form 3005 9/90:

In addition, 12 C.F.R. 591.2 states the due-on-sale clause is triggered by:

A great many exceedingly ignorant investors think that all you have to do to get around a due-on-"sale" clause is a transaction that is not a "sale" per se. As the regulation shows, that is not true.

Many gurus say you can get around the due-on-sale clause by doing a lease option instead of a sale. Wrong. Subparagraph (d) of the longer clause covered that. Now you have to look at the law itself [§1701j-3(d)(4)] to learn that the due-on-sale clause is triggered by any lease longer than three years. And it's triggered by any lease that contains an option to purchase the property, regardless of the length of the lease.

It is a shame that people who lack integrity, honesty, scrupules and moral character think nothing of teaching others how to be like them.  These people are typically schemers, who think they have developed a new way around existing laws - as if they're clever.  Don't fall for their foolishness... seek facts and ignore their conjecture.  Remain honest and moral.

You would not believe how many times I ignore inquiries from supposed "investors" seeking information about my rates and requirements, because they can't communicate at an adult level.  Sharing my story, from the money-side perspective, might be eye-opening for those seeking private funding.

It began when I subscribed to a "private money" newsletter.  My name was added to a list of potential private lenders, and the email/phone inquiries soon began.  As someone who consummates approximately two deals per month, I have experience in the arena of funding real estate acquisitions, remodels, and flips.

Imagine yourself responding to a job ad - the employer wants to know he can establish a working relationship with you, and that you will be motivated and reliable when it comes to performing the job you're applying for.  Putting yourself in the employer's shoes, how would you rate the following applications (or resumes) received from different applicants:

• One consisting of only the following sentence: "Please tell me more about your job and how much you'll pay me." (equivalent to "What are your rates and how much do you charge?")
• One consisting of only the following sentence: "Are you hiring?" (equivalent to "Are you loaning money?")
• One which only provides non-relevant information as it relates to the applicant's job qualifications; none of which can be used to qualify the applicant's ability or motivation to perform the job. (equivalent to "here's my life story - now can I have the job?")
• One which delves into the person's prior relevant experience, their relevant educational background (be it reading books on the subject or helping a mentor), their long-term goals and general business plan, and what they're looking for.

Sadly, the majority of the inquiries are from the first three categories - rarely is there one with enough common (and business) sense to communicate what's relevant.  Those who lack foundational (the ability to read and write at a high school level) or social skills are also the first to take offense to the fact that I "discriminate" against them... because I'm unwilling to risk my money on them.  I've always found this sense of entitlement (that you should be the one who governs how my money is spent) entertaining... especially since I grew up poor in a gang-infested neighborhood.

Seriously - How can I take you seriously, if you can't conduct yourself in an adult fashion and (on top of that) lack any type of business sense?  Do you really think I would feel comfortable loaning you money, knowing you don't pay attention to the important details in a business relationship (such as the loan repayment schedule)?

The next time you're applying for something, be it a job or a loan, you might want to make yourself take some time to answer the question, "what could I convey to this person in our first contact that will help them realize I'm qualified to receive what I'm applying for?"

PS - The ones that I've said "yes" to, I've come to trust.  We work on an informal basis, I fund them overnight (based on a phone call and existing escrow relationship), some of the paperwork sometimes gets done after the fact, and keep each other apprised of what's going on.