All Forum Posts by: Michael Lam

Hi @Geoffrey Jones

My brother in-law is a real estate attorney.  Although he practices in Boston, he may have a license for NYC.  Either he is pretty well connected and can make you a reference.

I don't feel comfortable sharing his contact publically, so send me a PM and I'll share contact.

@Zach Schwarzmiller

Just like any career change, you won't know till you test it out.  You may have this luxury of time to see what works.  If you do, let your wife do what she likes to do.  If keep options narrow, you'll just come back to same situation with the corp job if you don't have the undeniable passion.

My wife was a cosmologist before getting involved with my real estate investing career.  She wanted to be involved but didn't know exactly what to do.  I looked at her skill set suggested some task that may fit her, but also kept door open for her to try other things that best suit her.

At the end, she turned out to be a great stagger,interior/exterior home designer. 

@Eric Stevens

In my opinion, yes I think you will need to take a loss.  Because putting just a stick is just that, a "sticker".  It'll come off and you could be liable for misrepresentation.  Although I can see the "grey" line of First Contact.  In which you can disclose immediately upon a first encounter, but lets say you didn't do that by accident.  Where does that put you legally?  You're better protected by disclosing this upfront. 

Hi @Tou Lor

If your implying that a FMHR (fannie mae home ready) loan don't require you to pay mortgage insurance, then you may be mis-informed or the laws last changed on me.  From what I know:

1. Both are similar in that they target first time, low-income, less FICO sensitive applicants.  In general you will be charged a higher interest rate overall  with a HomeReady loan.  

2. In terms of mortgage insurance, FHA bakes this part of your monthly mortgage. HomeReady doesn't force you pay together (upfront) but still requires insurance.

3. There are loan limits to both, i forget which is more limited.

4.  Both offers low down payment options.  Friendlier to low fico scores and low income earners

5.  Key difference is in HomeReady loan, you can pool together income to qualify for mortgage.  Meaning you can claim "income" from friends,family,relatives to qualify and they don't have be put on as "borrowers".  Does this sound familiar to anyone?  (2007-2008)

Hope that shed some light.  Remember to make sure you confirm and speak with a broker to get facts and on the latest policy changes.

Hi @Brandon Hobbs

Have you figured out your DTI? Traditional lending will require something of that amount (20%) if you want to avoid PMI. For investment properties its generally favorable to put 25% down for the better rate. But you also need to consider the long term investing plan and how to best leverage your own capital vs leveraging OPM (other people's money).

I suggest get with a loan brokers who have access to various lending programs .  You don't have to put down 20% to get a rental.  You can put down much less.

In the past I've worked with this lender who has done some pretty amazing things.  Reach out to him, his name is Michael Quihuiz.  He can get you into some pretty flexible programs, especially if you have the income to support it.

http://www.realestatewhisper.com/michael-quihuiz-p...

Hi @Jason McLendon

You have some valid concerns.

1.  Have a vacant home showing visible "long term" vacancy will certainly not ADD value to your home

2. The overall neighborhood is it up-kept?  Does it appear run down?  You have to assess or ask existing neighbors if that vacant home been broken into already.  If it has, most likely it'll be vandalize again.

3.  I think with what you have provided, if that is the only home vacant on your block it'll be in your best interest to take that vacant home down and renovate to either sell or rent out like your original plan.  

4.  Contact information is generally public, so go to the city to find who owns that home and if its under a trust, find the contact info and make the proper connection.  Agents may be limited in this scope.

5.  If your able to contact the home owner of the vacant home,  have an offer ready to send.  I wouldn't do it right away, instead I would try to get some info to why its vacant and let him/her know that your considering buying the home next door.  If you can feel the person out to see if they are willing to sell, then your strong offer comes into play.  Remember the emotional side of things from the seller/landowner perspective.  Use that to your advantage. (a lot of time its physiological negotiations that you have to hone in on as a Real Estate Investor)

Hope that helps :)

hi @Lorin K.

What a big topic!

If anyone can answer this, they wouldn't be on this board, they'd be busy investing their billions!

1.  I agree that China will influence a crash.  I do believe based on the research and data I've collected that China will influence world economies.  The fact that a very  good portion of foreigners purchasing homes in Vancouver is Chinese plays into this narrative.

2.  Remember the market news is several months behind.  Pay attention to leading indicators like building materials or permit pulls.

3.  Another factor that isn't getting nearly enough attention is corporate play into this "crash".  You'll notice if not already companies are tightening up on their fundamentals.  

4.  If your into stocks, look at the option play for home builders or mortgage companies.  Market will price that in (a way to look at sentiment instead of reading surveys)

Hi @Dottie W.

I'm not familiar with USDA type mortgages.,  but a few things I noticed from this post and would like to provide some feedback:

1. Never look at homes that your "pre-qualified". What you are experiencing is the exact reason to get "pre-approved". As a pre-qualification is marginal at best to see if you can really afford a home. Getting a "pre-approval" does more investigation of your DTI, desktop underwriting approval can be done that goes through much more stringent checks. Once you have such pre-approval you can be much confident pursuing and closing in on a deal.

2.  Under table money is never legit in the eyes of any established lender.  They care about documented income.  Without documentation, your essentially doing a stated-income.  Those days are over (but they are creeping back....we can discuss this on a separate thread).

Although I didn't help you, I still felt inclined to share and point out some things that will help you in the future.

Good luck

@Douglas W.

Welcome, this place is a wealth of knowledge!

Hi @Daniel Bolinger

Your playing on a thin line with that approach, "knowing I will be able".  You never know the future holds and it can change on a dime.  Its good that you may have strong idea and strategy to refinance, but its important for you to assume that play won't be available when calculating your affordability of a home.

If you can't see yourself purchasing a home with PMI for extended time, then it means you could be over stretching yourself.

Remember, for a refinance to work is your assuming you'll get the cash in the future (seasoned) to put in 20% down.  You also assume the price of your home stays the same or appreciate.  You also assume you still have your job and pays the same or more.  Do you get the [hint]?  Few assumptions are made, and if this doesn't ring a bell,  think 2007-2008 housing crash.  

Now I could be wrong with my analysis above because I'm assuming you don't have the capital now to put down 20%, hence going down the FHA route. But if you had the cash but your electing to go through FHA route to leverage rest of your liquidity elsewhere, that is another story. But brings up some more questions if that is the case.

Hope that helps :)