All Forum Posts by: Nick Foundas

@Marielle Walter just an FYI you may have "100k" in equity but that is not the amount you would get access to from a bank. Most banks will do roughly 80% LTV for a home equity line. So with that said if your appraised value is $430,000 then the available equity that you can take out would be $14,000.  The math would be:

$430,000 x 80% = $344,000.

$344,000 - $330,000 = $14,000

You can find some banks that will go above 80% LTV for a primary residence which will get you a higher line of credit but the interest rate will be higher.

I'm looking to start a large scale direct mail campaign for small multi family properties (2-4 units) but one thing I worry about with multi family direct mail is if the letter will actually reach the Owner.  A lot of the times the public record will say the Owner lives at the property but of course they dont and the house is being fully rented out.  Have you run into this issue?  Do you get a lot of mail kicked back as a return to sender?  Since the public record says the owner lives at the property (even though they dont) I wonder if a lot of mail ends up being delivered at the house and then just gets thrown away, unless of course the tenants are good and give the mail to the Owner.

@Ricky Beliveau first off excellent job on the recent BP Podcast!!  I saw your comment above, would you mind shooting me a message with the names of those local banks? Thanks!

Some of the things I do when trying to learn a new market are set up some searches on MLS so that you receive new listings for Single Fam, Condo and Multis that come on the market, visit those open houses and then keep an eye on them to see how fast they go under agreement and if they sell above list etc. You definitely want to see them in person because if the house is a dump and still sells fast then you know its a desirable area. Also, read the descriptions of listings in Waltham because most Agents will include in the write-up if its a "highly desirable" area of the town (most towns have sections that are more desirable than others), for example in Waltham you may see "Highly Desirable Cedarwood location". Some write-ups may also say mention other aspects that make that location desirable for example close to train etc. As you read the descriptions and track how they perform you will quickly understand the hot/desirable areas. Finally, you could simply call up the local real estate office and pretend to be a Buyer interested in the area and ask them to tell you about the town and which areas are good, which streets etc.

Ive used Stanley Steemer for cleaning and they did a good job, but dont think they do repair?

Hi Patrick, I was running into the same issue, mostly finding 75%. If you wouldnt mind, would love if you could send me a PM with any Lenders you found that may go to 80% LTV.

I heard Eastern Bank has been good to work with but I havent given them a call yet, you may want to check them out if you havent already.

Hi Flavio, I ended up closing on my HELOC (on my personal residence) with Hanscom about 3 months ago. All went great

Hi Calvin, your friend described a typical real estate transaction for a house being listed by a Realtor on the open market. A Realtor that represents the seller is going to be looking to protect the sellers interests and will expect a $1,000 deposit when you make the offer and then they will expect an additional 5% deposit when you sign the purchase and sale agreement (5% is typical not 10%). None of these are the law or a requirement but simply the norm when dealing with a seller that is represented by a Realtor. If you are working directly with the seller yourself then you can negotiate whatever terms you both agree to in terms of deposits, close dates etc. Offering an upfront deposit (earnest money) during the purchasing process shows you are serious about purchasing (the more deposit money you offer then the more serious you come across to the seller)...and from the sellers standpoint it protects their interests by forcing the buyer to have some skin in the game and making it less likely the potential buyer will just walk away from the deal and risk losing their deposit.

What are the typical LTV banks are offering these days for a cash out refi for an investment property? Is 80% typical/standard or is 75% more typical and you need to dig around for the 80?

I guess it all depends on what your end goals are (Flip, Long Term Buy/Hold, Cash out Refi etc....This is just a quick back of a napkin # crunch but a cash out refinance may be a consideration especially if you want to hold onto it long term in your portfolio: Purchase at $215k, 20% down payment = $172,000 initial loan balance. If the house appraises at $295k post reno then an 80% LTV Cash Out Refi on the appraised value would result in a new loan of $236,000 which allows you to walk away with roughly $64,000 at closing (not factoring in closing costs etc) which means you could recoup the majority of your renovation budget and re-use it for another investment property. You would need to also crunch the #'s on the rental income to make sure the monthly rental income would support the new loan balance of $236k plus operating expenses. If its a duplex and you are living in 1 unit then you would only be getting $1200 in gross rental income while you live there, not the $2400. Need to just play with the #s under different scenarios and figure out what your end goal would be