All Forum Posts by: Paul Crosby II

Hi Jordan!

First congrats on driving for dollars. It is something alot of people underestimate.

The best thing to do would be to go to your county's website and get information on the house. Tax situation, liens and last assessed value are few things to get you started.

You should then get the owner's info and see what their interest is in selling. This would help you figure out if you want to buy it, wholesale it etc.

Lots of loan options once you get control of the property. Hard money, Private money and renovation loans are all available for someone with a 750 score.

Hope that helps get you started

As someone that is passionate about passive investing it would be great to have a conversation on why to choose different vehicles. 

REIT ownership vs directly holding the note

MLP Ownership vs Syndication

Deciding between becoming a PML or HML?

This isnt an exhaustive list but definitely sharing your thought process behind why to choose either would be helpful.

Thanks in advance!

Hi Bach,

TLDR: FHA does not like seller financing and you will have to get this deal to 75% LTV in order to assume the mortgage

I agree with one of the previous posts that you should run from this deal. 

Here is a link to FHA assumption guidelines which would require you to pay to have the deal (https://www.hud.gov/sites/docu...)

For quick reference i have put the section of concern below

"

When assuming a mortgage not subject to the HUD Reform Act of 1989, an
investor must pay down the outstanding mortgage balance to a 75% loan-tovalue (LTV) ratio if the current owner occupant requests a release of liability,
and the mortgage
 was originated by an owner occupant pursuant to a Certification of
Reasonable Value (CRV) issued by the Veterans Administration (VA), or
 is one for which a Direct Endorsement (DE) underwriter signed an appraisal
report on or after February 5, 1988.
Either the original or the current appraised value of the property may be used
to determine compliance with the 75% LTV limitation.
This requirement continues throughout the life of the mortgage."

Rates will continue fluctuate.

I guess the real question is what rates people are getting. Wealthy clients securing funds off their securities and assets are getting sub 4%

Credit Unions and Private lenders are taking 4-5s

Jumbo lenders, physicians loan folk and Gov loans are usually low 5s to low 6s.

Then you have everyone else

Thats awesome as you are farther ahead than most!

Between the resources here on BP and driving around your local market, you are sure to find no shortage of opportunities.

Looking forward to hearing what your next deal looks like

I know my bio says Columbus however i end up doing alot of loans in Texas (still licensed)

There are a ton of foreclosures soon to be hitting the market because of layoffs and people buying at the top of the market and their budget.

All that to say keep on keeping on. Marketing like @Guy Gimenez says will help you find future foreclosures and all kinds of other opportunities.

This might seem odd since i am a lender myself, however I have found going to networking events to be the best way to find good lenders and i have met a few to help me with deals i cant do myself.

Usually, if someone takes the time to attend such an event they are:

1. Decent with talking to people and explaining what they do

2. Hungry/Appreciative of new business

3. Willing to work outside the normal 9-5pm

4.Possessing some kind of unique portfolio product that differentiates them from banks, credit unions etc

 Its is up to you.

You could utilize a renovation or construction loan with your lender to make that happen so you dont have to pay alot of the expenses out of pocket.

ADUs are nice because some municipalities do not look favorably on duplexes and multi units tend to command higher interest rates outside FHA.

Hi Adam,

That is awesome that you and your wife on both on board with house hacking! Tried to get my wife to do it and she wouldnt share the space.

I would also suggest looking into a single family property and adding an ADU(accessory dwelling unit). You can usually get this approved via Fannie Mae and it might open up some other options for you on getting a cashflowing property.

Good luck!

Hi.

I had this with a few tenants as well.

What i would suggest to make things more personal is possibly doing a video using Youtube, Loom, Vimeo etc to go through the property, neighborhood and the process to move forward.

This will have the potential tenant feel "warmer" and also have it seem like you gave them something (more detailed info) so that they will feel some reciprocity and send it all back to you.

The problem seems to be that the data you are providing in the listing doesnt answer enough questions or create enough of an emotional pull for them to make a decision.

Just my two cents hope it helps