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Professional Investor's Advice

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  • 42 Contributions
  • 2 Best Answers
  • 3 Helpful

Professional Investor wrote:

I want to get a home equity loan for $50k, but my bank's interest rate is 7.20. Can I check around ?

Answer
This is a good rate.  You are lucky to even get approved for a HELOC in these times.  I would only look elsewhere if you think they would give you a higher line of credit.  Otherwise, go with the HELOC you mentioned.
September 11 2009
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what does the # in lot size signify?

Best Answer
You are probably referring to the square footage of the lot.  Sometimes, the number is listed as .15 acre, which translates to 6534 sqft.1 acre = 43,560 Sqft. .5 acre = 21,780 sqft.25 acre = 10,890 sqft.15 acre = 6,534 sqftThis will give you a general idea of the size of a lot.
August 18 2009
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Can someone email me the updated loan guidelines for CA investment property Cashout Refinances?
I was wondering if someone has a copy of updated guidelines for a 30 year fixed investment property cashout refinance?  I would like to know the max LTV for a cashout refi.  Looks like you now need 2 years of actual rental income to count the income against the PITI.  Is there a seasoning requirement for the cashout if you don't need the rental income to qualify?  Probably 1 year seasoning to use current appraised value?Thanks,Randyrlacy916@gmail.com
August 18 2009
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can you get a loan if you are on a fixed social security income and have a criminal record?

Answer
If the income can be determined to be fixed and continues for at least 2 years then you should be able to qualify for a loan.The criminal history has no bearing on a loan unless you are getting an FHA insured loan and your criminal history is within a certain time-frame and has to do with certain frauds against the government. 
August 17 2009
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What are the pros and cons of FHA 203k loans?

Answer
Hmm...if you are from Fairfield, CA you will have a lot of issues.  Your number one issue will be getting an offer accepted.  I can bet that you will be targeting REO properties.  I know from experience that there will be up to 30 offers on many of the homes priced below $150,000.00, so your offer will fall by the wayside.  It is difficult enough to get an offer accepted with a Conventional loan with 20% down for these same properties.  I suggest that you look into a Rehab loan with Community Commerce Bank (ccombank.com).  If you qualify for this loan you will probably have a better chance in closing a deal since more people (i.e. Realtors) are familiar with this bank and this program.  You may be able to find the biggest dog of a house and make an offer since offers may be scarce on the property.  If you are the only offer you may have a chance to close under the 203(k) loan.  Do your numbers and figure out what you qualify for and then look at houses within that price range.I'm an all cash buyer in Sacramento, and I still sometimes have issues getting my offers accepted.Another hint: always contact the listing agent directly and let them double end the deal.  This way you will be working directly with the person in control of the deal.
August 17 2009
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IT IS WORTH TO KEEP A HOUSE THAT I BOUGTH FOR 259.000.00 NOW I OWE 178.000.00 TO THE BANK?

Best Answer
Depends on if you can really afford the payments and what the true current value is today.You are missing a lot of vital information such as if the $178k 1st mtg is a result of you putting down $81k or did you get a debt reduction?A lot of people who are upside down over $50k on their properties tend to want to walk away from the house even if they can really afford the home.I suggest you contact your lender first if you are significantly upside down or cannot afford the payments.  You never know they may just modify and/or do a principle reduction.
August 17 2009
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how is ARV formulated ??

Answer
ARV is After Repairs Value.  We used to call it Future Market Value.  The ARV is absolutely based on the current comps in the area.  After Repairs you will no longer compare the property to other dilapidated homes, but rather to other regular resale properties.  You can always get an appraisal based on an ARV value.  Just call your appraiser and tell him you want to know what the value will be after the repairs are completed.If you are a wholesaler then you will definitely have seasoning issues if your buyers are looking to purchase with a loan.  Nowadays, you have to have owned the property for at least 1 year prior to getting a new conventional loan.  This is a guideline restriction, so there is no way around this.  If you have a cash buyer then you are all good.The banks calculate value for LTV purposes based on the lower of the purchase price or the appraisal if the property has not been owned at least 1 year. 
August 17 2009
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I have 150k in cash and would like to invest iin properties in LA,CA. Recommendations?

Answer
ATTN: Gregorio DennySo, you want to get into technicalities?  I own property as it should be owned in an LLC.  And I buy properties in the Ghetto and rehab them and rent them to Section-8 tenants.  Slumlord?  You're an idiot.  If you were smart enough to know where the money is at you would be doing the same thing...if you had money to begin with. 
August 17 2009
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I'm considerung buying a manufactured home and would be very thankfull to hear from the people who a

Answer
I know that some Manufactured homes are nearly identical to a stick built home, but they are completely different when it comes to financing.Houses have sufficiently depreciated enough to be affordable throughout the country.  I would not go with a Manufactured because they are not as financiable as other properties.  This means that you may have issues buying and selling the property.  And your appreciation will not be as great as a regular SFR. 
August 17 2009
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