All Forum Posts by: Pete Fiannaca

Originally posted by @Joshua Fulenwider:

Option 3 sounds like the way I would go with this lender. You have the added benefit of not paying interest on the HELOC whenever you have it a zero balance.

What other lenders have you talked to?  Are these terms typical for your area?

I'm leaning that way too... I've spoken with a bunch on lenders. This is the only one I can find that offer anything like the 95% LTV cash or HELOC. Pretty much everyone is happy to refi conventional at 80%. And rates are close enough between lenders to be negligible. Good call on the no interest at 0 balance.

Hey Folks!

Last week was HUGE for me as a new investor, having closed on my first cash out refi of a small SFR I bought about 9 months ago. Numbers were great as I ended up out of pocket about $15k for a down payment (20%) and another $15k in rehab costs. We refi'ed at 80% and I ended up depositing my check of $30k in the bank just the other day. So altogether, I'm out $0 and now have 20% equity in a property that nearly doubled in appraised value and is cash-flow positive to the tune of +$450/month.

With that out of the way... here's where I really need to tap into the knowledge in this community.

I'm interested in refinancing my primary residence which was purchased 2 years ago via a 3.5% down FHA loan. The goal is to free up FHA so that I can use it again to move out of my primary (rent it) and move into an owner occupied situation in a 3 or 4 unit. With renovations that have been done to the house, I'm confident that I'm sitting on the border of 20% equity. I have a couple options and I'm not sure which one would put me in the best option moving forward...

OPTION #1: A local lender in town currently offers a 95% cash out option on primary residences with NO PMI. The catch there is that they ad .75% to the rate, so as of today, we'd be looking at a straight 5%. As long as the appraisal goes peachy, We stand to cash out around $20k minus closing costs. Payment stays the same since we drop PMI, but also hike up the rate.

OPTION #2: That same lender will refi conventional 80% LTV. Appraisal comes back peachy and it's a break even. I drop my PMI, payment goes down which helps me cashflow more when I turn my current primary into a rental. However, I forgo the $20k lump sum which might be helpful down the road.

OPTION #2B: Quick audible on option #2 as I could do 80%LTV and drop to a 15 year mortgage only increasing my current payment $50 or so a month. Again, no lump sum cash, and not increasing cashflow, but cutting the term in half.

OPTION #3: This was the most creative option (bank suggested it). Do the 80%LTV so that I get the best rate possible and schedule a double closing which would include a HELOC for the other 15% (95% total). In this situation, I'd have the best rate, the most equity, AND the flexibility of about $20k in a HELOC locked in at 4.2% for 10 years. Again, it's not cash, but it's firepower if I need it.

HELP! So many implications here. Again, trying to put myself in a situation where I can scoop up the deal of a lifetime as soon as I find it!!! 

Thanks

Pete 

Hey Friends,

Quick situational breakdown for everyone, and I'd love to have my blind spots pointed out since I'm still quite new in the game.

- I own my single family primary residence, having purchased it with an FHA loan (currently 15% equity in the property)

- I recently purchased, waited, and cash-out-refinanced a SFR in town, putting 100% of my investment back in my bank account and maintaining 25% equity in the property.

As I continue to focus on cashflow, I found a FSBO duplex that I'm very interested in. The owner is an investor who mentioned having "friendly terms with the private money lender who is holding the note on the house".

Here's what I'm trying to figure out...

Since I'm working with another investor (two if you include the guy who's his private financing on the duplex currently), what are some attractive ways to make an offer on the property if my goal is to come out of pocket as little as possible? I'm stuck with option 1, below, but I know that there must be at least a few more things I'm not thinking of.

Option #1: Offer to take over seller's current loan (retain current terms) AND create a 2nd loan that the seller would hold himself? 

Help me get the creative juices flowing! The property is a gold mine, being offered at <$90K and bringing in gross monthly rents of $1800/Total/Month. Would love to snag it before someone else does!

BONUS QUESTION: What should I be aware of if I work out creative financing with the seller and then 6 months down the line, want to cashout refi with a bank? Are banks less likely to look at deals like that when investors are hold paper on the original loan?

Hey Everyone, Quick and relatively simple question. I own 1 SFR in addition to my primary home that I live in. With being so new to the game, should I consider using an accountant for taxes this year to ensure Im not missing out on anything, or is turbotax competent enough to help me out my first year dealing with a rental? Would love to hear from both sides of the aisle! Thanks Pete

Hey Folks -

Wanted to see if anyone knows of a bank in upstate NY that offers a unique loan product advantageous to house hackers. Generation Bank for example offers a 100% LTV for owner occupants with no PMI, BUT only on 1-unit houses.

My wife and I are looking to move from a SF home into a 3-4 unit, but would like to see if there are any low down payment mortgage products out there that can be applied to a multi.

Thanks in advance for any leads!

Best,

Pete 

Hey BP -

Looking for someone who's seriously interested in being the cash part of a partnership for at least 1, but possibly a future of, small flips in the WNY area. 

I just finished up a yellow-letter campaign and have one lead that's outstanding in a "B" area, but with an "A" mailing address and "A/A+" schools. 3 bed, 2 bath, 1400 sqf. Potential numbers below...

Acquisition (Aggressive): $35K

Acquisition (Conservative): $45K

Rehab (Aggressive): $35K

Rehab (Conservative): $45K

ARV (Aggressive): $170K

ARV (Conservative): $150K

Rough Total Profit (Range): $60K - $100K

Would be looking for a cash partner that would want to fund, both, the acquisition and rehab. I would manage the design/project, serve as contact with GC, and work with the RE company to list/sell. Profit would be split 50/50.

Looking to move on this ASAP. Happy to chat details.

Best,

Pete

Matt - Thanks for the reply. ARV was a little tough to come up with as the house is one of the biggest SFH in the area. 16 Marlow sold earlier this year at $65k and is 600 SqF less than this home. Was also looking at 190 Dakota and 99 Avery (among others) when determining fair comps. There's no reason I can see that a price tag of $70k can't be substantiated after repair. Thoughts? Best Pete

SFH available for immediate assignment at the price of $20,000.

Home is located in Rochester, NY, in the Lyell-Otis neighborhood. Very strong rental market. Estimated rehab budget of $22k-25k with an ARV of $70k - $75k. Estimated monthly rent after repair is $900/month.

Serious inquiries only, please. Can provide photos upon request.

Best,

Pete 

607-382-1247

Zac - What's going on? Sorry to hear that you're spinning your tires. I'm actually in the opposite situation... finding too many deals and not enough liquid $$$ to close and get them done. Would love to chat more and see if we can help each other out. Feel free to shoot me an email/give me a call. Contact info is listed in my profile. Pete

Anyone know what these are? They are progress. They are action. They are a first step.

I refuse to let my dreams avoid me because I failed, or was afraid to take action.

These are my first 50 mailings (out of 500 total) going out this week to absentee owners who also live out of state. I'll post back here in a month regarding my success. My 2% success, my 50% success, or my 0% success. I've already succeeded by ACTING and thus, don't have to fear for the next 30 days that I'll fail. I can see if I hit or missed my benchmarks, but I KNOW that I wouldn't have failed.

I hope you are all inspired to ACT today.