All Forum Posts by: Moises Carlos

Interested.  Please contact me.  310-902-6128

Byron, you seem like a good guy with a solid set of business skills. Maybe we can meet for coffee. I'm in the Greater LA area. I'm a mortgage broker and own/manage MFR, have done flips and broker real estate. Would be good networking. All the best. - Moises

You should look at refinancing before you move out because primary residences get lower rates than investment properties. Your rate is the base rate plus what you pay in MI. FHA does not allow MI to go away if you put less than 10% down when you purchased and I believe this rule was in effect when you bought the property. If you have 20% equity now, look to refinance into a conventional loan with no MI. The rate may be a little higher but loosing the MI will make it worth it.

Bad idea.  You need to be around or maybe you can esign documents but what if you need some paperwork that is back at your home, the loan would go nowhere. 

First you need a 20% or greater savings in the interest rate between the HELOC and your first mortgage. If your HELOC and First Mortgage aren't at least 20% apart, don't bother. IF they are, taking out a chunk of money to pay down the first with the HELOC then attacking the HELOC balance and repeating will save you some interest. That combined with making aggressive principal payments will get your mortgage paid off very fast. My suggestion, if you can achieve the interest savings, do it and then at some point, look to refinance to a 10 or 15 year loan because the rates will be as low as the HELOCs. ONce you get there, you can forget about using the HELOC. Even if you don't employ the HELOC and you want to aggressively pay down the debt, look to get into the 10 or 15 year when the payment you will make is comfortable and approximately the amount you've been sending in month-to-month to pay down the principal.

I am a lender and have come to the determination that using an FHA loan to buy your first property is a fantastic opportunity that should not be passed up on. It's the opportunity to get into a rental (after you live in it for the required time) with very little money down. As long as the rents cover the payment and you cash flow a little, does it really matter your rate of return? You'll own that property free and clear if you keep the loan to maturity. I'd say skip the condo and look for a 3 to 4 unit property to buy with your FHA loan. One you buy your first home, the possibility of using 3.5% down will be much more difficult (in the same market you live in) due to FHA rules, etc. You buy one property with 3.5% down and still have the money to make another investment. What could be better?

No and no. All of those are nice to haves if you are working in a small environment, then the E&O might be a waste. Especially if you are just buying for yourselves. If you are trying to represent other people or are going to be listing property, then knowing what you are doing is more advisable than the E&O but E&O would be good.

Escala Financial (I) can help you in California. i can break it out in a few different ways.  Thank you.

I came up with 3600 in monthly exp (PITI) using 20% down and a 4.5% interest rate. Unfortunately in SO Cal, most SFH are going to be upside down as investments due to the demand. You might want to look for 3+ unit properties because those, especially 5+, are supposed to have a return on them. Also my PITI does include Principal so you could back that out of the equation. You would not get cash flow but the payment is paying down your principal so it is a forced savings.

I am a mortgage broker in So Cal.  I use about 10 different lenders and Stearns gets most of my activity at Escala Financial.  THye are great.  Not the quickest turn times but very good rates.