All Forum Posts by: Tony Rodriguez

 That's odd; title companies on the west coast give agents/lenders/etc free access, which includes looking up real estate nationwide if it's a nationwide title company. 

Top of page for the White House:

And I pulled Ben Bernanke's after reading on the news that his mortgage refinance application was denied due to being self employed for <2 years after he was no longer Chairperson of the Fed.

Often these aren't super accurate; not uncommon for the preliminary title report to uncover more stuff. Which of course why a title report without anyone willing to issue title insurance holds zero value.

@Tony Rodriguez Can you provide the difference in FC timelines between those borrowers who had attorneys versus those that did not? We passed on a non performing note last year in which the borrower's attorney was using every trick in the book to stall the FC. It was a shame because it was a nice property in a nice neighborhood. When it comes to the court system, it sometimes seems that he who has the most cash wins. Wealthier borrowers may decide its better to pay attorney fees to prolong a FC rather than pay a mortgage on an underwater property. Poorer borrowers don't have the money to fight FC so they don't contest them. Just an observation but I wonder how true it is across the board.

It might be best for us as a general practice to avoid buying any non performing notes where the borrower has an attorney. (Especially in Crook County! I love that term...)

Small banks and credit unions will finance with out a W2 if you are making money with your flips and Realtor income. I quit my job in 2010 and was able to get around 50 loans with local banks. Call a few dozen and be sure to talk with the commercial mortgage lender. You will have better luck getting the loans in your LLC than if you try to get a 30 year Fannie/Freddie for a SF or small multi family.

The banks will look at you personally and want you to personally sign on the loan, but they will be nearly equally concerned with the property and will consider that income to you. 

 John, it depends on where you intend get your electrician license, in Chicago you either need an apprenticeship or two years of experience and a signature from a master electrician and off course you have to pass the exam. Some towns in the suburbs are more lenient and do not require a master electrician signature but the experience has to be in the electrician field, luckily I work designing lighting fixtures and I'm quite often at the job sites when electricians have issues/questions with our products so I will use that as experience, my co-worker did that to start his own business as an electrician last year. Once you have your electrician license then you can just register with the town you intend to do work with and they will take it regardless of where you got your license from. I will have to register as a contractor though but I intend to do that anyway to be able to pull permits, I intend to do some of the work myself and/or by hiring temporary workers, I have a guy who can remodel a bathroom in about 2 weeks at at a rate of $15/hour for a labor total of $1200, try to get this rate from a contractor.  Electrical work on other hand is expensive and an electrical contractor is needed to pull permits so I plan to do this on my own at least initially once I get my electrician license.

@Tony Rodriguez Isn't there an experience or apprenticeship requirement to get licensed??  Or does your experience count?  I have wired many houses on my own (with permits pulled and passed) but when I decided to make this a legit business I had to do it all correct and use licensed people.

RE license will save on the buy side and help get you in doors quicker. I do think it is a good idea if it will be your career. I flip properties, most everything is a cash deal. But, if you have the cash to purchase it it isn't too hard to find a bank that will finance the rehab. Just have to ask around, some may not want to bet on you yet but after you have more experience it won't be an issue. You should find a bank willing to take a first position, HML worse case.

Find an experienced mortgage guy in your area and get your ducks in a row before quiting. With $350k in cash and your purchase metrics you should do fine buying and rehabbing properties but may require use of a HML. You will likely be stuck working on one project a time which isn't bad but you may lose out on deals if you spend all your cash. You money seems like quite a bit now but it will get eaten away quickly with living costs, holding costs, etc. I would consider using financing even if you don't need it to keep cash available for the next deal and to keep a nice safety net.

After 2 years of reglar income from this you will be able to finance this business.  Rental income largely depends on whether the bank considers you experienced.  Many banks require 2 years of rental to consider them but if you they consider you experienced they will allow rental income right away.  WF was giving me credit for rental income started 1 month prior on a m2m lease...  But I have history managing rentals.

Last - I am not sure about your area but here you don't need a license to sell your property on the MLS. Can pay a flat fee listing service... And an electrician's license takes time to achieve, you may reconsider and get a contractor's license.

What was the $95K/yr job?  I could use a raise.  :-)

@Tony Rodriguez if you are flipping, you should be using hard money, or private money.  Conventional cash-out refi isn't in the equation.

@Tony Rodriguez Assuming you are talking about doing flips, not buy and hold (since you mentioned you would be listing properties for sale) I am not sure if it is going to make sense to go through the time and expense of a cash-out refi.  Hopefully you will have sold the property a couple of months after you finish the rehab, and you will save quite a bit in closing costs by skipping the refi process, given you would likely only hold the refi mortgage for a couple months or so.