All Forum Posts by: Jim Blackburn

@Byron Broughten

You can move out anytime you want - nothing prevents life changes.

You can cash out 75% of the new higher appraised value on single family 6 months after the closing date. 

70% for 2-4 unit. 

/ˌjentrəfəˈkāSH(ə)n/

1. the process of renovating and improving a house or district so that it conforms to middle-class taste.

   "an area undergoing rapid gentrification"

   • the process of making a person or activity more refined or polite.

     "soccer has undergone gentrification"

@Erica A.

In San Francisco or anywhere in California really,  properties typically cost more.

Not sure if you own a house now. .. 

With 90k at your disposal, instead of tying up 90k to control and participate in appreciation on 450k valued real estate...  

Have you ever thought about controlling 1.448m in real estate with just $50k out of pocket, and keep 30k in reserves, and collect rent on 4 units?

Just 5% appreciation on a property valued at 1.448m is $72k per year in appreciation.

@Allen C Herring

99% of the time the appraiser will appraise the property for the price on the contract.  If it appraises for less, you can renegotiate with seller before proceeding to move.

Structure your offers with never reducing the credit, but only bumping up the price.  This way you strategically keep $8k in your bank account - "since cash is king" and you get to finance the costs and escrows into the price.

Example:  

Suppose 204k was the sellers bottom line. 

a) 212 with $8k credits towards buyers closing costs & escrows = 204 net to seller

b) 204 with $0k credits towards buyers closing costs & escrows = 204 net to seller

Seller nets the same either way, so just explain to seller that you want to raise keep the credit, and bump the price to whatever price he needs to do that.  

Happy investing! Ask anything.

You can only get an FHA loan for her if she is on the loan. FHA for you will not work since you are pegged as an investor.

@Gregg Heminger

Congrats buddy! I'm curious, did you buy it with 3.5% down or 25% down?  

Yes.  You buy now as second home (if 100 miles from your home) investment if not... Work on your mothers credit for two years.. Then she can refinance the note into her name.  

For primary residence, it's easy to get HLOC immediately after closing up to max 89% CLTV.

For investment, I do not know of any banks that offer HLOCs.  

If anyone knows, please pass on the lender info! 

Typically with commercial properties, only the income and the equity is considered for qualifying.  

@Christopher L.

Never heard of tri/fourplex loans at 90% LTV unless it's primary residence with 3.5% down.  

Would you mind sharing the name of the  credit union so we can add it to our lender portfolio?