All Forum Posts by: Maddy Lakshmanan
Maddy Lakshmanan has started 10 posts and replied 27 times.
Post: Pre-foreclosure home through conventional loan
- Posts 27
- Votes 4
Is it okay to buy pre-foreclosure homes? The home is relatively new so I’m not too worried about the damage inside (hopefully). Yet to see home though
what would be challenges in going through conventional loan? Would the current owner’s lender give any challenges?
would there be any existing liens?
Hopefully, I don’t need to evict or deal with emotional distress from the owner or family while they vacate home. I empathize with them but wants to make sure I’m not putting myself in trouble. Any thoughts on this would be appreciated
Post: Restoration loan guidance
- Posts 27
- Votes 4
Quote from @Linda Garcia:
Hi Maddy! I haven't done any rehab loans lately, but in general, yes they are more expensive. On top of an investment property having a higher rate and down payment requirement, a conventional construction loan will come with more points and fees due to risk. The lender has to pay for inspections, title updates, loan servicing, etc that a typical loan doesn't have, and these are of course passed on to you. If you want to go with private money, the rate will likely be even higher but you might have less fees and restrictions on using the funds. You would need to put some feelers out to some hard money lenders and see what they would be willing to give you based on your plan for improvements.
You could also consider finding a property that is just dated but doesn't have anything that HAS to be done. Then you can tackle a few of the most desired upgrades first, as your budget allows, and add more upgrades between tenants.
Post: Restoration loan guidance
- Posts 27
- Votes 4
Looking to buy an investment property (40+ year) that requires significant repair
Is it worth investing in such, or wait till I save money for a better house? What are the things I should lookout for ?
Are restoration loan more expensive than conventional loan ? can you suggest good lenders ?
thanks is advance for the community to share your knowledge
All the wholesale deals that I'm observed from my wholesaler so far is not giving me enough equity. I was expecting at least 30% equity after refinancing.
I'm following auction.com as well. However, the price seems to constantly climb.
- What are others experiences with auction vs wholesale?
considering to buy a sectiom 8 rental townhome.
Is it worth to become a section 8 landlord? What are some of the challenges someone dealt with .
Can you kindly share ?
Post: Wholesale dealers - double closing cost
- Posts 27
- Votes 4
Quote from @Ty Coutts:
In my experience all wholesalers have slightly different practices when it comes to their costs.
I have a few people I can connect you with, feel free to DM me or call/text anytime!
Sure. Can you please message me few wholesalers when you get a chance? Thank you.
Post: Wholesale dealers - double closing cost
- Posts 27
- Votes 4
Quote from @Jesse LeBlanc:
@Maddy Lakshmanan a double closing generally isn’t required. One could assign their contract to their end buyer. But if you do, then generally you would pay for your side of the closing costs, when you buy the property.
It’s easiest to find a good referral for a title company or closing attorney from other local Facebook groups. Simply ask “who is an investor or wholesale friends closing company” and you’ll have a lot of ppl reply with their favorites and why.
I'm a real estate investor and trying to learn the ropes of wholesale. I want to avoid paying double closing cost. If I request my wholesale dealer to connect me to seller, would they allow that? I will certainly pay their fee. Just wanted to avoid paying double closing cost.
Post: Wholesale dealers - double closing cost
- Posts 27
- Votes 4
Does all wholesalers require double closing costs?
How to find any good reliable wholesale dealers that would take single closing cost?
Quote from @Nicholas L.:
what you are proposing will not work.
you can't just 'refi' and pay the HML back unless you've added significant value to the property.
otherwise you'll just be out a bunch of cash.
do the math and you'll see.
I missed couple of costs in my earlier calculations earlier
- any repair cost to increase value of house
- double closing cost for wholesalers
let us add the risk -
— what happens if the house value goes down and refinance doesn’t willing to pay for the loan
- if I couldn’t find a tenant & make positive cash flow
- what if there are major repairs involved
I’m still positive about the whole process but going to tread carefully
let me know if I missed any other hidden costs and risks
Quote from @David Ramirez:
If your numbers make sense with those terms why not. You make money when you buy!