All Forum Posts by: Matthew McNeil

I started investing in SFHs in the Boise area (Meridian) since 2008. I’ve enjoyed appreciation rates on my portfolio ranging between 15% - 73%. Currently, as @Mark H. Porter wrote above, the Boise areas is proving to be a tougher point of entry and you’re getting less cash flow per door. However, with the exodus of people leaving the larger west coast cities I think Boise will continue to grow over the long term. 

Originally posted by @Russell Brazil:

If your less than 80% ltv, escrow is optional.

LTV on that property is 64%. I was not given an escrow option. I'll push for it next time. Another learning notch in my RE experience.

Originally posted by @Kyle J.:

For what it's worth, I just did a refi on a different property last month, and that lender gave me the option of escrow account or no escrow account.  They didn't seem to care one way or the other (and no discount for picking one option over the other unfortunately). 

I ended up picking no escrow account to keep things simple and so I knew the insurance and property taxes would get paid.  :)

Kyle, I've been given the option to self-pay escrow on other loans. This one in particular, however, would not allow that as was very clearly detail in the loan documents. Thus, my reason for making this post. I'm going to move forward carefully to make sure they document their agreement allowing me to self-pay aside from an email.  And, I'll continue to pay the escrow until I'm assured in writing. Otherwise, I don't want them to come back on claiming a default as was mentioned above by Shannon.

Originally posted by @Shannon Robnett:

@Matthew McNeil First of all Nice Work! We have all had an experience with a bad debt servicer. Just be careful and follow up with something in writing while, because while this may look and sound good at first glance , you are going to want to get everything in writing. The reality is your loan docs stipulate that you will pay these things through escrow and if you do not you would be in default of the documents you signed. And as we all know it stated many times in the hundreds of pages of documents that you signed that failure to pay will result in default. We also know that while you are very keenlyaware of what is happening with all your properties, most servicers are not. Communication from one department to another could break down and you could find yourself in a world of hurt!

I am wanting to hear how this resolves its self so keep me posted, just document everything.

Shannon. Good advice! I'll make sure I get everything in writing and stay on top of this.
Noted regarding your "default" advice.  I certainly don't want that to happen simply because I trusted they'd accommodate my demands regarding the escrow. 

I'll provide an update as this unfolds....  Regards.

Originally posted by @Salvatore Lentini:

@Matthew McNeil - Wow!  Did you have to sign any additional or revised loan docs?  Who's the lender?  You can message me if you don't want to post in the forum.

Hi Salvatore. The lender is Lakeview Loan Servicing. I wasn't required to sign additional or revised docs.  Following is a paste from the email I received from their Oversight Manager;

"We have approved your request to waive the escrow account as an exception. There are some regulations surrounding that process which require a 10-day waiting period. Therefore, we entered the request today and unless you change your mind within that 10-day waiting period, we will process the waiver once the waiting period expires on or after October 9th. We cannot adjust the payment to remove escrow from the monthly payment until the waiting period has expired and the waiver is fully complete."

I plan to wait and see how this unfolds going into the next month.

Two months ago, I completed a REFI to lower my rate and increase cashflow. Within two weeks of closing, my lender sold the note to a large lender based in Florida which I’d never heard of. I was shocked to read ABYSMAL reviews from hundreds of people who had complained about the particular lender, and they weren’t shy about using some colorful language. The primary issue is the lender is repeatedly negligent about paying taxes and insurance from the escrow they're collecting with the mortgage payments.

Before my first payment was due, I emailed the new lender and included copies of the complaints I’d read online. I told them in no uncertain terms that I would place the house on the market, sell it, do an Exchange, and find another lender if they did not allow me to self-pay the taxes and insurance. Surprisingly they agreed.

QUESTION: Has anyone experienced a lender agreeing to waive the collection of escrow payments AFTER the loan docs have been signed which stipulate escrow payments will be collected?

Originally posted by @Aiden Hatchett:

A cash out refinance is an important part of the BRRRR method. I am a first time home buyer and at unease with the tender qualifications that are required while attempting cash refinance while being self employed. Are there any other ways to pull money out of a property, if so what are they? Have you experienced a cash out refinance while being self employed?

It’s early in my journey for both self employed and in the real estate business. All ideas welcome.

Thanks!

Have you experienced a cash out refinance while being self employed?

Yes, no problem.

Originally posted by @Jeff M.:

Originally posted by @Christian Cramer:

A real estate agent in the Philippines says its a good time to buy? 

Similar to asking a barber if you need a haircut. 

The Philippine real estate is still the best place for long term investments. Local investors usually buys from a reputable developer at pre-construction stage, with annual growth rate at 9%.

Then there's reality. Investors buy from a reputable developer then wait 2 to 3 and sometimes 4 years for the condo to be built. Those developers ride on the backs of investors who lose money from loaning their money to the developer to build the tower with ZERO return. Zero cashflow. 

I think it’s prudent to rethink your post title. It’s not about comparing RE vs Stock returns. The wisest man who ever lived laid the groundwork for a value that every serious investor needs to consider when he advised people to “divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.” The question you posed asking if it’s worth the extra work? Quantify “extra work.” Some investments take more work, and the level of work required varies based on the needs of the investment during various times. For the past 25 years I’ve strived to embrace the divide your portion principal.  I'm well diversified in the stock market and I hold a RE portfolio in a high value appreciating market. 

You lost me when you wrote, "You NEED to... ASAP. NOW."