All Forum Posts by: Mike Lee

Thanks Jon,

I too thought 6pts was alot, but that is what she says I will end up paying after all is said and done.

What are most investors doing now?

Okay I went today to the bank just to get an idea what I may borrow. I mentioned to the loan officer that it will be NON owner occupied. I told her my intentions of buying a duplex or SFR and renting out. I was told a minimum 25% down & ~6pts for all closing, attorney fees, etc. I also asked if I should buy in the name of a LLC she wasnt really clear, but basically they want the property to be under my name. I asked if later on I could transfer title of property into LLC she mentioned that the bank states in their contract that they would have to approve, and that there will be another fee for that (she didnt specify). I asked if I could buy fixer upper with private lender and then refi after repairs are made she said yes after 6 months seasoning and NO Cashout.

1. Are you guys buying under your name and then transferring title to an LLC later on?

2. Is it possible (or legit) to buy as a personal residence and rent out?

What are you guys doing?

Bump for more info

How much earnest money do u guys typically put up? Also when do you submit the earnest money? After your offer is accepted or when u submit your offer

I am a little confused. How does one go about this?

Do you try to get contractor bids before you make an offer?

If so, do you send contractors out to every house you checkout?

or do you have an idea of what the costs will be and after getting offer accepted you send out your contractors to get bids?

Any help is greatly appreciated.

Mike

Okay this is kind of a dumb question. When buying an REO do I have to pay the commission, or does the bank who is listing through agent?

Hi,

I have always thought that the ideal "first rehab" would be one that I live in. I heard from several people that banks will not allow you to buy their REOs if you are using an FHA loan...especially if the property requires repairs. I was wondering if I closed on the property (either under my name or an s-corp.) with hard money would I still be able to refinance with an FHA loan as a first time homebuyer (still get tax credit)? I have some cash (enough for 20% down), but would prefer to use OPM and hold on to the cash. Is this possible? Has anybody done this? I would like to get into my first home with as little out of pocket as possible.

Mike

Hi,

I have always thought that the ideal "first rehab" would be one that I live in. I heard from several people that banks will not allow you to buy their REOs if you are using an FHA loan...especially if the property requires repairs. I was wondering if I closed on the property (either under my name or an s-corp.) with hard money would I still be able to refinance with an FHA loan as a first time homebuyer (still get tax credit)? I have some cash (enough for 20% down), but would prefer to use OPM and hold on to the cash. Is this possible? Has anybody done this? I would like to get into my first home with as little out of pocket as possible.

Mike

Is it possible to fill out a post occupancy agreement indicating tenant has 10 days to vacate property and close with a hard money lender? I have checked the lender's website and it says: Due to insurance restrictions and issues with construction work around tenants, EDC will not fund properties that are occupied at the time of purchase.

Is this the case with all hard money lenders or just this one? Tenant has no money to vacate the property. Is there a way or loophole around this? I guess tenant can maybe leave their stuff in the house, come back and move everything out w/in 10 days but just not sleep there.

Sorry for not being clear Wheatie. I guess I mean a regular sale by owner with a regular lender (no hard money). Only thing is that the contract will be assigned to my end buyer who will have the advantage of going with a lower interest rate loan.

I'm not too familiar with the whole "subject to" thing. I've read it's a risky thing because the lender can call the "due on sale clause".