All Forum Posts by: Michael Dunn

Those properties that will " Easily " get approved and have the least amount of trouble in getting financed and or the money in Escrow for those repairs ?

I've been looking over the properties listed on the HUD website, as well as the HomePath website, and some Properties say that they ARE Insured, while others say they are NOT insured... or Un-Insured

So for the properties that are Insured, what exactly does this mean ?

Does this mean that if a Property is Insured, that there is minimal repairs that are REQUIRED to be down... under $5,000 worth of repairs needed, based on the bank sending out an inspector/appraiser , and them giving it an Insured Passable grade ?

Reason I'm wanting to know is, that if a property is Insured and thus this means that the Bank or Lender that owns it is saying that the repairs they will require to be done before they will finance the property is under $5,000 .... Then By the pictures alone, if I can see that all else is needed / I'm wanting to do is to update it a little bit , I.E. new flooring and paint the interior, and maybe paint the cabinets and replace the countertops in the kitchen and put on some new hardware and the total of these upgrade is under $5,000 ....... Then if my Budget I have saved up in cash and set aside is $10,0000 , I should then in Theory be good to go in having enough money to pay for the MANDATORY repairs as stated by the Lender/Bank, as well as do any upgrades to the property that I see fit, and stay just under my $10,000 set aside cash reserves ... In theory :)

Thank you both for the replies

Quick question please.... Upen, you mentioned that I would first have to

refi the loan way from FHA

So would I then be refi the property into a regular conventional mortgage with a Bank ?

Thanks again for the help

Good Afternoon,

I am hoping that someone can shed some light on using an FHA , and how many times an individual can use an FHA .... so long as they meet the standards each time they go to apply for the loan ?

So if you were to use an FHA loan 1 year from the date that you closed/purchased a property as an O.O. , could you in theory 1 year from that day get another FHA loan at 3.5% down ( so long as you still meet the guidelines and qualified ) ?

I am trying to way and look at all available options , as which best way(s) to go about acquiring Rental properties .

I want to buy them as an Investor so that I can Rent them right away, but I can't afford putting 20% down right now in order to do so . So buying them as an O.O. and living in ach property for 1 year is my best and likely option right now ( until I can save up the money to put down on a $80,000 - $100,000 property ..... so I'd need $16,000 - $20,000 to put down on a property in my area, that is in a good neighborhood and that has great Rent to value ratios. Jus not quite there right now with having that amount of $ for a down payment.... hopefully within the next year or two though  :)

Thanks for the help and advice

Jean ,

Thank you for your reply and advice

Jean, Mark and Joe,

Thank you all for replying to and contributing to the thread. I really appreciate it

I did have some questions regarding the HUD and HomePath properties, and buying these as an Investor please.....

Questions:

1. What % down do you have to put , to buy a HUD or a HomePath listed property ?

I'm assuming it's 20% down ? Or is there a way to purchase these properties with having to put less down .... 5% ? 10% ?

2. To have a likelihood of getting a listed property on HUD Homestore at a " Big " discount , what is the average listed range that a property usually has to be listed for , before a Likely discount can be had ... over 30 days listed? 45 days ? 60 days ?

3. I see that on HUD homes .... any property with an Exclusive by it ,is open to all buyers ( Investors included ) ?

4. How long until a listed property becomes open to Investors.... is it up to 15 days of being listed ( as HomePath is ) for a listed HUD property ? Wondering this because... there's a property that shows a List Date of 7/21/2015 , and the property has already been reduced in price on today's date of 8-11-2015 ..... which is less than a 30 day period, but yet the property has already had a price drop

5. Does Insured ( IN )  vs  Insured Escrow ( IE )  vs  UI ( Uninsured ) mean , as far as the difference between the three ?

If a property is listed as Uninsured, then this means that the property will NOT qualify  for any type of repair financing ( 203K ) ?  And if not, then how would you get the money for the repairs.... Have to pay for them out of your own pocket OR do the repairs yourself after you purchase the property?

6.  Say a property needs $10,000 in repairs, and you don't want to add on any financing for the repairs to the loan ( 203 ) ..... will you still be able to purchase the property and then after closing/ you own the property , you can then do all of the work yourself if you wish to do so ?

The properties are sold As-Is , so it seems that it's up to the buyer as to whether or not they want to add any costs to the loan for repairs ?

7. I noticed that HUD doesn't " Show " how many days a property has been listed ... you pretty much have to do your own due diligence and add the days up , from the date the property wwas listed, up until that day that you're looking up a property.

This is where having a qualified HUD agent can really help you out , in that they can notify you as soon as....

1. A property goes into the Extended period ( open to investors )

2. When a property hits those Key days on the markets ..... 30, 45 , 60  ( and thus a better chance of getting these properties at a discount )

3. When a property is Reduced in price

8. What does " Bid Open Date " reference on the HUD properties ?

9.  What does Period Deadline mean on a Property?  There is a property I am looking at , that has the date of  10/15/2015  listed under the  " Period Deadline "  ?

Thanks so much again for all of the help and input , Really appreciate it

I just wanted to put forth and ask those familiar with HUD , if you can purchase the properties listed on HudHomeStore as an Investor ( or has HUD too, done away with allowing the purchase of the properties as an Investor as HomePath has apparently done ) ?

And also, is the price that is listed for a property ever negotiable , Or is it pretty much set in stone , and the price you see, is the price you'll pay to purchase it ?

Thanks for any and all input

Good Morning,

Hoping that some fellow members can please recommend a few Portfolio Lenders who they have used and worked with , in the Memphis,TN and or Desoto County,MS area ?

Thanks so much

Hi Mark,

Thank you for the update regarding the HomePath loans and buying them as an Investor

Since this is no longer available as an option to purchase as an Investor at 10% down through HomePath , Is there any other option(s) out there that allows for purchasing properties as an Investor ( and having to put down 10% or less ) ?

Thanks so much, I appreciate it

Good Evening,

Just wanted to ask and run by a few questions, regarding some general Investor and Rental Properties .....

1. Once you start receiving Rental income , How long do you have to wait, before a Lender will let you use that Rental Income as your own Income .

Say you clear $500 a month from a Rental property , and have had a renter renting that property from you for 4 months at the time that you go in to the Lender to try and get another Loan for another Rental Property...... will they likely use that $500 that you're making from the Rental,  " Go Towards " your actual income ?

2.  I know that HomePath has an Investor based loan at  10% down ?  ( I guess it is still 10% down , if purchasing as an Investor ) ?

Aside from HomePath's Investor Loan , are there any other Loans out there that have " Lower " than 20% down , if you are wishing to purchase a property as an Investor ?

3.  Is there any  " Investor " Loan out there , that will allow you to do some of the basic rehab work yourself .... I'E.  let you install the flooring and paint the inside and outside of the house ?

Thanks for all of the help,

always appreciate it - Michael

I have a call with a Lender today in about 4 hrs. from now ,

and before that call , I wanted to run by a few things with fellow members , and get there advice and knowledge on some certain things I should Ask and or expect when I talk to the Lender.

1. As stated in previous posts, this Property I am wishing to purchase is a bit of an " Out of the Box property " , in that it is being sold via a Trust and my Mom is the Trustee of the Property ( conflict in selling between seller and buyer.... due to Family ties ) ?

2. The property is in a distressed state .... needs a new Roof, painted inside and out , some Electrical work is needed, needs new appliances , new water heater and new flooring ( these are the necessary and essential thins that need and will have to be done )

now it does need a new AC unit , BUT .... I am considering just putting in 3 window units vs buying a brand new unit.  There are many houses in the neighborhood that have AC units , and these houses sell and rent quite easily.  The houses were all built in the 40's and 50's

Well, the seller ( Mother/Trustee ) and the buyer ( myself ) , have agreed that she will sell and I will buy the property as it currently sits ( in it's current As-Is condition ). The question with this I have is ...... I will be using a Regular FHA loan to purchase the property , and am wondering what the Lender is likely to say and offer us as options on this agreement between the two of us ? Will the Lender " likely " give me a loan on the property, knowing the needed repairs that it needs, as long as ..... we put in the contract that I will make the necessary repairs in a timely manner ( within 3 - 4 months from the time we close ) ?

My dad and myself are both Contractors ( although neither of us are liscensed ) , But I am wondering if the Lender will allow us and trust us in getting the forementioned repairs completed, by allowing us to do the work ourselves ?

3.  I could do the deal as a 203K rehab, but the issue with this that I am concerned about are ..... I will be purchasing the property for whatever the appraised value of it is.... which is likely to be around $55,000 - $57,000

And I have heard that with a 203K ..... that you can only get an extra $10,000 for repairs if the property is within the $50,000 - $79,999 price range ?

4. I am assuming that if the Lender allows the seller and myself to purchase the property in it's As-In condition, with making NO repairs prior to closing..... that I will have to pay for the repairs out of my own Pocket ?

If this is so ..... Is there a way that I could get an " Added " $10,000 onto the Loan , that I can use to make some of these repairs?   Maybe as a 2nd mortgage ? Escrowed ?

Thank you so much for any help and advice ,

Really appreciate it