All Forum Posts by: Kevin Romines

@Levi McDaniel Welcome to BP, glad to hear that you were a small town kid. Coming home can be such a great thing from time to time, with family and friends. If you ever need anything, feel free to ask, I'm always happy to help out.

I'm not on the servicing end of the lending spectrum, so I cant say with 100% accuracy that you cant do an assumption with any other lender than the servicer, but that would be my guess in this case. Below is some info. you will want to address as part of the assumption process. 

Suggested legal language for Purchase and Sale Contract: 

Seller and Buyer each acknowledge that in connection with Buyer’s application for approval to assume the loan(s) currently encumbering the property (the “Loan Assumption”) certain items must be delivered to __________________ [INSERT NAME OF LOAN SERVICER] (“Servicer”) so that Servicer may timely process the request for Loan Assumption. Seller has been advised that only after Servicer receives a complete Loan Assumption request package will Servicer then be obligated to begin processing such request. [On or before ______________, 20__] or [Within ________ [INSERT NUMBER OF DAYS] from the [date of this agreement], Seller and Buyer agree to deliver to Servicer all supporting documentation for Servicer’s Loan Assumption approval review. These items typically include the following: 1. Copy of executed contract of sale 2. Current financial statements and of proposed transferee and its principals, along with credit reports, real estate experience and background for each 3. Current and proposed detailed organizational charts 4. Freddie Mac Form 1115 – Borrower and Borrower Principal Certificate(s) 5. Freddie Mac Form 1116 – Real Estate Schedule for proposed transferee 6. Information regarding proposed professional manager and/or transferee’s management experience 7. Evidence of insurance 8. Current, certified financial statements for property (T-12, if not previously submitted to Servicer) 9. Budget for year 1 for property for proposed new borrower 10. Moisture Management Plan, certified by the Servicer 11. Copies of third party reports related to the ownership transfer, if necessary 12. Applicable fees.

While the above-referenced items identify what is customarily required by Servicer to support a Loan Assumption request, Seller and Buyer acknowledge and agree that the terms, provisions and conditions of the documents governing the loan(s) to be assumed will ultimately control, including, without limitation, transfer fees and costs, release language, legal opinions and the documentation required to evidence the Loan Assumption. Buyer acknowledges that submission of the required items does not ensure Servicer’s approval of the Loan Assumption, and that Servicer’s evaluation of Buyer’s application will be made in accordance with Servicer’s underwriting standards and the terms of the loan documents

@Conner Bland You can have as many second homes as you wish, up to the limit of numbers of financed properties. I'm referring to Fannie Mae's limits, not Freddie Mac, which is much more limited then Fannie Mae. 

- If buying an owner occupied home, there are no limits on the numbers of financed properties you can have.

- If buying a 2nd home or rentals, then your limits are max. 10 financed properties, also counting owner occupied homes as well.  Keep in mind a 4 unit, still only counts as 1 financed property, its not the numbers of doors, but the numbers of individual financed properties. 

Welcome to BP Nation @Anthony Patel The resources and connections here are invaluable. The money is made in the action steps, so be prepared as they say, to take massive action. If there is anything I can help you with, feel free to touch bases with me.

@Aaron Kramer Welcome to BP nation and all the resources that are available here. This website is hands down the dominant leader in providing real estate investment resources and connections. To that end, I would assume your going to want to align with other professionals on a team basis to complete the deals that you are working on. With that said, if I can be of any assistance, don't hesitate to reach out to me. 

Keep plugging away, and you will get where you want to be. Happy investing!!!

If the loans are done in your personal name, you can have up to 10 financed properties through Fannie Mae. If you want more rentals after that, you can go buy a new owner occupied home and turn the previous owner occupied home into a rental. 

I say that because there are no limits on the numbers of properties if your buying an owner occupied residence. If you want to do some through an entity, then PM me, I have a solution, but don't want to get to long winded on here. 

As far as cash out, you can get up to 75% LTV based on the new appraised value once you have been on title for 6 months or more.

Less than 6 months, you can do a cash out refinance up to the full amount of the purchase price + the closing costs on the refinance and a max of 75% LTV, the caveat is that you must have bought the property via cash and have no lien against the property at the time of refinancing. This is known as a Fannie Mae, delayed financing loan. I'm closing one today for an investor.

The issue that you sound like your running into is the fact that you may have been receiving the rental income for a short period of time and its not showing on your tax returns as of yet? If you have a traditional rental property then we can use the rental agreement to show income up until it starts showing on the tax returns, then we would look to the tax returns for that income from that point forward. 

With an Air BNB you have a window of time where your making revenue however its not showing on your tax returns at that point. Also because you don't have a traditional rental agreement, there is nothing to count until your next tax return comes around?  So you will most likely have to wait until you can show that income on your tax returns if you need the income to qualify for the mortgage?

Good news, that window of time is only temporary and will end in less than 1 year. 

Here is a note, you can buy a vacation rental using a Fannie Mae second home loan. The down payment would be as little as 10% down, the property must be at least 50 miles from your primary and you must agree to occupy the property for 15 days a year. 

I hope this helps?

Very well laid out @Account Closed. 

I have used the same technique in the past, but some minor changes from what you laid out. It was very lucrative and the deal was completed after a 3 year contract and a 1 year extension. I like you, didn't mind that the buyer needed the extension because it kept paying me and I knew I would get the back end a year later. The buyers did get the financing in place and so I made a nice sum off the minimal investment upfront. The buyers were happy because they had built equity over the 4 years, so it was a win / win / win deal for everyone. 

@Account Closed, when you say that you allocate $25,000 per house and the money you give the seller comes out of that, can you explain that in more detail? I'm not quite following it?