All Forum Posts by: Tim Swierczek

@Kelly Conrad I live in & invest the Payne Phalen area which is very close. Reach out if you would like to connect

@Joe Schaak & @Bruce Runn the TISH is not the full story.  If you encounter a Category vacant home you still must complete the required repairs.

Vacant Building Sale Review Program 

https://www.stpaul.gov/departments/safety-inspecti...

The City of Saint Paul requires a review of the sale of all vacant buildings. Requirements differ based on the category of vacancy:

Category I

• Payment of registration and fees
• Notify the City of new ownership
• Restore utilities and comply with orders for legal occupancy
• Obtain a Truth-in-Sale of Housing Report

Category II (No sale without City approval)

• Registration of new ownership
• Payment of registration and fees
• Code compliance report
• Cost estimate from licensed contractor for all repairs
• A schedule for completion of the repairs
• Proof of financial capability to complete all repairs.

Category III (No sale without City approval)

• No sale without a Certificate of Code Compliance or Certificate of Occupancy.

For full program details, contact Vacant Buildings in DSI at 651-266- eight9 eight9 . There is a fee for the Sale Review Process!

~Tim

@Kelly Conrad   I hope you found what you need.  This page should be Helpful.  https://www.stpaul.gov/departments/safety-inspecti...  

You apply, and then they come out to inspect.  This page has a pre-inspection checklist.  Make sure you score 100% on the checklist and you will get an A rating.

@Adam Irvin There is no such thing. Here are the exact Conventional guidelines as published by Fannie Mae (Freddie Mac's are the same). This means it is not up to the lender to decide, or in other words, no matter how hard or far you look you cannot finance an LLC with a conventional loan.

Having said that I do offer investor loans in Minnesota in the name of an LLC, but they are not conventional loans.

Link to confirm

https://www.fanniemae.com/content/guide/selling/b2...

General Borrower Eligibility Requirements

Fannie Mae purchases or securitizes mortgages made to borrowers who are natural persons and have reached the age at which the mortgage note can be enforced in the jurisdiction where the property is located. There is no maximum age limit for a borrower.

Exceptions to the requirement that borrowers be natural persons are:

• inter vivos revocable trusts,
• HomeStyle Renovation mortgages, and
• land trusts in those states where the beneficiary is an individual. (Note: Fannie Mae permits land trusts on a negotiated basis for states where land trusts are widely accepted.)

Cheers,

~Tim

@Jonathan Larkin you can do both, buy investment properties with your HELOC, and then eventually BRRRR a property. I would keep your options open by retaining 3.5-5% for a BRRRR and use the rest to buy non-owner occupied investments. BRRRR is my favorite way to get started if you do not have access to large down payments, but if you do there are advantages to doing both.

That being said, do not focus on getting the lower rate by putting an extra 10% down and it will reduce your ability to buy at least one property.  Too many early investors focus too much on the first properties cash flow and they use a massive amount of capital down, which dramatically impacts their ability to buy multiple properties.  

PS- @Amber Gonion has a great point.  Rehab sparingly as a new investor.

@Luis Vilar You are correct in spirit as it would be a gift to the parties involved, but when a parent co-signs on a loan and they provide a portion or all of the down payment it is not classified as a gift to the lender.  

@Kevin Romines way to clarify. I have only closed two FHA loans below 600, so that caveat was not on my radar, so we both learned something. Cheers

Jason Brown your overall strategy is good however I highly recommend you get the largest bank loan you can and take the smallest amount from the owner that you need. For example if you need 25% down get 25% from the seller and take the rest from your bank. The reason for this is two fold number one you will be able to more easily pay off the sellers small note over a shorter term. Number two you should get a better interest rate from the bank then you get from the seller I’m guessing here but that should be the case. Number three your bank loan will be amortized over a longer period of time which would make it easier to cash flow and pay off the seller note.

Brian K. I use www.rentapplicantion.net. Don’t settle for cozy or smart moves crappy applications. 100% customize your application and require documents to be uploaded with the application.

@Kevin R. You can’t be serious saying that FHA does not allow a non--occupant co borrower. They most certainly do them, and have for as long as I’ve been doing FHA loans. In fact there used to be a term for it called the kiddie condo because parents would often help their kids purchase condos as non-occupant borrowers while the kids are at college. I do a minimum of one of these every single month more than 50 in my career.