All Forum Posts by: Winston Covington

Hi Brandon, FHA is probably the most lenient loan that you will find on the market. Your friend can co-sign with you. However; your interest rate will be based on the lowest mid score on your credit reports. * Note * FHA loans made with the minimum 3.5% down payment require the intent of being owner occupied.

Furthermore, it would be ok to rent out one of the rooms for additional income.

Hi Jaron. If the time limit on the Counter Offer has expired...your current offer is dead. Unless you signed a Buyer Broker Agreement with the Agent that wrote the offer for you, you are free to use the Agent of your choice.

However; it sounds like your Agent was being honest with you and disclosed information to you as soon as he could.  Go with the Agent that you have confidence in along with a good feel for their experience, knowledge and integrity.

As we say in Real Estate “ Time is of the Essence “. Waiting 4 days to write your offer is a disservice to you as the Buyer as well as the Seller. Unless your Realtor had an unusual situation, it might be time to look for a more responsive Realtor.

Also while on this subject, I can tell you from years of experience...Have your Realtor present your offer in person.  Too many Agents are lazy and just email or fax their Buyer’s offer to the Listing Agent. No one can present your offer better than your Agent. Presenting your offer in person allows your Agent to read the Seller’s response as well as build rapport.

Knowing the Seller’s motivation and understanding their needs is much clearer when presenting your Agent is offers in person. You’ll find a much higher acceptance rate and better counter offers when  your offers are presented in person.

Good luck !

Hi Kundan,  the majority of loan documents that I have seen have required the borrower to sign that it is their intent to occupy the property as their primary residence for at least one year. How they verify this is unknown but I have heard of lenders making checks at the property to verify that it is being owner occupied.

You have the right to cancel your loan application. However; you will face the cost of the appraisal and potential escrow / title cancellation fees. Other than that, you should have no further obligation to the lender other than the cost of your credit report.

Years ago I represented several REO's that were being handled by Auction.com. We were required to hold the properties open on certain dates and times so that Buyers could see the properties. ( I wouldn't call it an inspection period but many of the potential Buyers brought Contractors with them )

The properties that I handled were all vacant and were all being sold in “ As Is “ condition. I also recall that a  5% Buyer’s premium was added to the final purchase price.

Last, it didn't happen often to me but I was aware of several REO Agents that had deals fall through. Whether the Buyer felt they paid too much or discovered too many repairs is u known.

Cheers, Winston R. Covington

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Hi Adrien, when purchasing a property the lender will require that your down payment be based on your contract purchase price.  Example - Say you’re buying an investment property for $ 100,000 and the lender requires a 25% down payment, your down payment will be $ 25,000.

When purchasing a property that you will not be living in as your primary residence ( Non Owner Occupied ) it is common today to see the Banks requiring a 20 to 30% down payment depending on income, credit and debt ratios. Furthermore, interest rates are normally higher for non owner occupied loans vs owner occupied loans.

Hope this helps.

Hi Maureen, my primary goal is to buy turn key  rental properties in good areas with good school districts. These investments will be funding my retirement so they will be long term holds.

With that said, I am open to other opportunities. I saw that you’re based in Birmingham, do you have an office in Huntsville or a local affiliate that will be available during my visit from 09/28/19 to 10/05/19 ?

Thanks !

Hi Caleb and thanks for your response. I’m interested in meeting with local investors while I’m in Huntsville from 9/28/19 thru 10/5/19.   Cheers, Winston

Good afternoon Bigger Pockets Family,

I’m interested in purchasing Single Family Homes and 2 to 4 unit properties in Huntsville and the vicinity for my retirement  
plan.  I will be attending the Bigger Pockets Investor Conference in Nashville in October so I will be in Huntsville from 9/28/19 through 10/5/19 and  then off to the BP Investor Conference.

I’m looking for local, reliable contacts to work with and would love to meet local investors ( lunch on me ) and get
introductions to well connected Agents, Property Managers, Appraisers, Contractors, Real Estate Attorneys and other quality Real Estate related services to build my team of professionals.

I’m a Realtor in Southern California and I was stationed at Redstone Arsenal while in the Army back in the 70’s. I’ve never posted on Bigger Pockets before so I’m hoping to find the help I need.

Thank you all in advance for your help.   :-)

Winston R. Covington