All Forum Posts by: Noah Corwick
Noah Corwick has started 7 posts and replied 234 times.
Post: STR in proximity of Bay Area
- Realtor
- Phoenix, AZ
- Posts 238
- Votes 108
Quote from @Jillian OrRico:
Hi Noah - also looking to connect - could you DM me? I tried but new to the platform. Not sure if I did it right. Thanks!
Hi Jillian! I just responded to your DM.
Looking forward to connecting you with my Bay Area contact.
Post: Seeking advice on Seller finance terms
- Realtor
- Phoenix, AZ
- Posts 238
- Votes 108
Quote from @Ty Coutts:
Hi, Victoria E., it’s common to ask for a down payment of 10-20% of the sale price.
1. In your case: For a $200K house, a 10% down payment would be $20,000, and a 20% down payment would be $40,000.
2. Check current mortgage rates as a reference. As of now, mortgage rates vary but are generally around 6-7% for a 30-year fixed-rate loan. Rates for seller financing are typically higher than conventional mortgage rates to compensate for the increased risk. A good range might be 7-9%.
3. As for fees, you should consider origination, processing and late payment fees.
4. Loan servicing companies charge for managing the loan, collecting payments, and handling escrow. Fees can range from $15 to $50 per month, or a small percentage of each payment. You can pass these fees on to the buyer, include them in the monthly payment, or pay them yourself. If the fees are passed to the buyer, ensure this is clearly stated in the terms.
5. The closing costs to consider are the recording, legal, title search, insurance, appraisal, and escrow fees.
6. Some terms you may find helpful:
Repayment Schedule: Clearly outline the payment schedule (monthly, quarterly, etc.).
Balloon Payment: If applicable, specify the amount and due date of any balloon payment.
Prepayment Penalty: State if there’s a penalty for paying off the loan early.
Default Terms: Clearly define what constitutes a default and the consequences, such as foreclosure procedures.
Insurance Requirements: Ensure the buyer maintains property insurance.
Maintenance Responsibilities: Clarify that the buyer is responsible for property maintenance and repairs.
I hope this helps you out, have a great day!
This is a fantastic breakdown by Ty.
The only thing that I'd add to this is to have the loan amortization schedule clearly defined as well. Basically if the payment amounts would be calculated like they are being paid over a 30/15/10, etc. year term.
Best of luck!
Post: Recommended Lenders for small MFR investors
- Realtor
- Phoenix, AZ
- Posts 238
- Votes 108
Quote from @Kelsey Vander Meulen:
Hi all,
My husband and I easily qualify for a conventional loan. We're looking to purchase a small MFR (2-3 units) in Tucson, AZ. We plan to put down 25-30%, and manage it as a midterm rental. Does anyone recommend any lenders?
Best,
kelsey
Hey Kelsey,
UofA alum here (Bear Down!). I have a great lender who specializes in investment properties that I would highly recommend. Let me know if you'd like his info.
Post: Improving existing property with new construction
- Realtor
- Phoenix, AZ
- Posts 238
- Votes 108
Quote from @Rodney West:
Quote from @Noah Corwick:
Quote from @Rodney West:
Quote from @Noah Corwick:
I would say that this is definitely worth exploring. Downtown PHX has been growing decently in recent years. With PHX expanding rapidly with no end in sight, it's only inevitable that Downtown will follow suit. Obviously I don't know where exactly your property is, but even if it's south of the sports arenas (which can be pretty rough), it will worth it in the long term.
Near 3rd ave and camelback, not on the main road…. I feel like it would be a good area. Thanks for your input!
If it's near the Lylo Swim Club & the LA Fitness, I would say this is 100% worth exploring for sure. The appreciation of midtown is booming.
It’s straight south of there on Highland. It also might be historic district, i’m not 100% sure though, does that pose any serious challenges?
Possibly. The city can be super slow to approve permits and it being in a historic district could make it drag even longer. So I would plan for a long review period.
But the fact that you already have property on the land should hopefully translate into it being ultimately approved.
But I'd definitely talk to the city or a GC (I can connect you to one if you'd like).
Post: Flipping and Rehabbing in Arizona
- Realtor
- Phoenix, AZ
- Posts 238
- Votes 108
Hi Armando,
If you are looking to flip in the heart of PHX, a $250k-$300k purchase price budget would likely get you a condo or townhouse. If you look outside of the greater PHX area, that could open up to possibly a SFH.
Obviously you'll have more restrictions on the condo/townhouse side rehabbing, so thought I'd call that out so that you can plan accordingly.
Best of luck!
Post: Improving existing property with new construction
- Realtor
- Phoenix, AZ
- Posts 238
- Votes 108
Quote from @Rodney West:
Quote from @Noah Corwick:
I would say that this is definitely worth exploring. Downtown PHX has been growing decently in recent years. With PHX expanding rapidly with no end in sight, it's only inevitable that Downtown will follow suit. Obviously I don't know where exactly your property is, but even if it's south of the sports arenas (which can be pretty rough), it will worth it in the long term.
Near 3rd ave and camelback, not on the main road…. I feel like it would be a good area. Thanks for your input!
If it's near the Lylo Swim Club & the LA Fitness, I would say this is 100% worth exploring for sure. The appreciation of midtown is booming.
Post: Improving existing property with new construction
- Realtor
- Phoenix, AZ
- Posts 238
- Votes 108
I would say that this is definitely worth exploring. Downtown PHX has been growing decently in recent years. With PHX expanding rapidly with no end in sight, it's only inevitable that Downtown will follow suit. Obviously I don't know where exactly your property is, but even if it's south of the sports arenas (which can be pretty rough), it will worth it in the long term.
Post: Real estate investor actively looking for single family homes to fix and flip
- Realtor
- Phoenix, AZ
- Posts 238
- Votes 108
Hey CJ!
The PHX market will have plenty at that price point with fit your criteria.
I'll shoot you a DM.
Post: Hello BiggerPockets! New PRO here
- Realtor
- Phoenix, AZ
- Posts 238
- Votes 108
Hey Dianah,
Welcome to BP! It's a great place to network and learn. There are so many perspectives.
Cheers to successful investing!
Post: Hard Money Lenders
- Realtor
- Phoenix, AZ
- Posts 238
- Votes 108
Quote from @Chris Seveney:
Quote from @Robert McDonald:
Quote from @Chris Seveney:
Quote from @Noah Corwick:
Hi Robert,
If you wholesale properly, you don't need to come out of pocket at all. You would assign the contract and have whoever the Buyer is pay all of that.
I think he is referring to Earnest Money Deposit to get it under contract.
Exactly
Typically EMD is like $3-$5k. I would focus on saving the money for an EMD before doing anything in real estate.
Sound advise.
The rule of thumb is EMD is typically 1% of the purchase contract price.