All Forum Posts by: Richard Scholtz

Seattle is such a city also .....I have to agree with this - Some cities do not cashflow ---  Only the multifamily units do since the multiple rents are larger....as in a 4 plex will cash flow....In Seattle 450K will buy you a single wide mobile home just large enough to house a small dog.... Seriously....we just financed a 950K 1400 square foot 2bdrm 1 bath rental....which may rent for $2500 but will not support a 700K mortgage even with 250K down.

So the folk that can pay the 5,000 a month for rent will buy something they do not rent homes ....The market RENTS ANALYSIS  Form 1007 attached to the rental appraisal will not support the rents needed to cover the mortgage payment...so Gateway cities are tough to cash flow. RE prices have grown faster than rents. Thus, they do not cash flow. 

Financed a few in Washington. They are underwritten based on "giving units"...since there are no gross sales and net profit margins.

Higher risk non-profits (church schools) can get bond financing if traditional bank lenders will not if you are looking at a higher loan amount. There are one or two lenders that just float bonds for the church which then get sold as investments to the congregation for their IRA's and so on.

Church buildings are sort of a single-use property....so limits its commercial Value.

Hello there...

The manufactured homes are the kiss of death --  since they are depreciating asset ...which means every year they are worth LESS not more......and mobile ...means you can load them on a truck and drive away...LOL!!

Any mobile before 1878 --  can not get financing since the high use of lead paint and asbestos insulation ...Google 1978 mobile homes...

We will finance a mobile home park as a commercial loan ...but given their low values and the unique issues they have ...I won't touch them --  despite the lenders that say they will.

Life is too short...

Travel well

Richard

FNMA uses a 6 month waiting period....and if you can get the purchase money with out encumbering this house,  you can actually get a loan based on a  new appraisal a few days after purchase using the "FNMA delayed financing option" (google that) up to 75% of new valuation. We just closed 2 x4plexes in Washougal W.A. under 4.0%. See my other posts....

I just got off the phone with Dependable Doors in Puyallup--They would not just sell me the spring (liability issues) but for $250 - $300 would install it.Two Five Three - Five Three Seven etc etc  ....They were a referral from my neighbor and they did 2 new doors on our street....""Rob"" was the installer.

Hello

House on Lake Tapps -  Some un-permitted changes made after construction ...

Now trying to get those repairs signed off by City/County

Went to the City - 

1) They want it inspected by Structural Engineer....

 2) They want validation on the insulation depth

Then to write it up --- so they can sign off on it ...

Any recommendations for the BP Community???

PM me ---  My Email is also on my profile

Thank you

Blackstone has issues...I don't like their insurance coverage requirements....add a layer of unnecessary costs to the loan ...and on small loans is gets pricey. There are others ((you get the general idea.)) 

Same pricing as Blackstone ((blanket portfolio loans))...other lenders underwrite and price 1- 4 family units.....

Those are called STATED INCOME loans....I wrote on the 2 tiers of those on some previous posts...BLACKSTONE and some other hedge funds are doing those again....Basically underwriting rental properties like commercial loans....and skipping the owner's taxes and income documentation.  They price about 250 basis points over A paper bank financing and are 30 year fixed loans....and way cheaper than hard money. See my prior posts on stated income loans or No Doc loans.

@Jay Baxter  Hello -  he/she is correct as once you are in title you are not buying it....you are refinancing it as you already OWN IT....it is your name on title.

The rules of refinancing for all FNMA loans are more conservative than when you buy it. When you buy it you get the 3% FHA down and 5% Conventional down and 0 (zero) down VA loans .....NONE of those HIGH LTV's are available as refinance.

Yes FNMA does hit your pricing for the Cash out.....

https://www.fanniemae.com/content/eligibility_info...

https://goo.gl/IhW4d                              Here are all the FNMA matrixes

https://www.fanniemae.com/content/pricing/llpa-mat...      Pricing Adjustments matrix

https://goo.gl/hRZ221

Those two matrices will show you all your options

Good luck

Delayed Financing Defined

“Delayed” simply means a property owner can finance a property even after the property has been purchased. The transaction involves an owner paying cash for the real estate then immediately financing the purchase with a new loan, replacing most of the original cash used for the transaction. But the program had to address the “seasoning” issue. And this program does by eliminating a seasoning requirement altogether.

Check rates for Delayed Financing refinances here.

A “seasoned” purchase is one that has been in place for a minimum amount of time. This has been put in place to more accurately determine the current market value of a property. Before seasoning requirements, a buyer and a seller could collude and sell the property below market then immediately pull cash out of the home with an inflated value. The borrowers would pocket the money and if a foreclosure ever took place, the lender found that the home was worth much less than what is owed.

Fannie’s seasoning requirement was six months but is now effectively eliminated. You can pay cash for a home today and apply for a cash out refinance the very next day. No seasoning needed. Why the change?

Fannie Mae Delayed Financing Rule meant to Move Housing Inventory

The program was first introduced three years ago to help distressed properties get back into shape and ready for the market. There are few options for permanent financing that allow a buyer to obtain financing to acquire and rehabilitate a property with one loan program, such as FHA's 203(k) program. But unless the lender has direct 203(k) experience, this program can be confusing as well as time-consuming.

When any conventional mortgage is placed on a home, both the borrower as well as the asset being acquired must pass certain qualification tests. Besides helping determine market value, the lender must make certain the property is habitable. If the home is in such poor shape that no one can reasonably live there, the home must be repaired or rehabilitated prior to any loan approval.

Prior to the introduction of the delayed financing program, borrowers had to wait six months before tapping into the equity of the home with a cash out refinance. With this program, the requirement is waived.

That means borrowers can buy properties that need some repairs with cash, make the necessary changes to the property then reimburse themselves by pulling cash out of the property and replenishing their cash reserves.