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reo: Critical information for rehab projects and flips - 05/30/12 06:25 AM
More profit, less risk, fewer hiccupsImportant tips for REO rehabs and flips
In my experience 2,3,4 family properties have the best risk-reward ratio, the best profit potential iow. Aquisition prices tend to be lowest, and rental incomes offset monthly interest, insurance, and tax expenses. Avoid profit erosion/losses by leasing properties at the earliest earliest opportunity - even if you plan to sell. Sales can take a long time. (See #1 above). 2,3,4 family properties work best for rehab loans, resale, and refinance to a home loan. (See #1 above). With the exception of the FHA 203K (owner-occupied only) there are basically no home loans … (0 comments)
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reo: Do Fix & Flips with our money - or your money... - 01/15/12 12:42 PM
We are still faced with the best real estate opportunities of a lifetime. As sad as it is to say, the economic malaise continues to serve us very well. My investment group is interested in funding
highly profitable (fix and) flip projects - up to 100% of hard cost.
INVESTMENT CRITERIA
Our investment criteria are as follows:
1-4 family properties only. (2,3,4-family preferred) Preferred investment size: $20K-$100K ($200K max) NJ, NY only ARV (After Repair Value) of at least 150% of hard (purchase and rehab) cost Cross-collaterization on other properties considered.
If you are interested in:
Fix & Flip project funding, go here for … (1 comments)
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reo: Financing REO projects in 2012 - 01/05/12 08:53 PM
We are still faced with the best real estate opportunities of a lifetime - and amazingly there are even getting better! As sad as it is to say, the economic malaise continues to serve us very well.
FOCUS ON RENTAL VIABILITY
Because resale markets remained weak (and rental markets strong) during 2011, we started assisting developers with refinances to convert rehabbed properties to rental properties rather than wait for the re-sale. This way we were paid back, and developers could cash out and move on to the next project. Long-term rental viability is therefore now more important than resale value - which is why we prefer 2,3,4-family … (2 comments)
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reo: Market assessment - Rate influencers - Closing costs - Year-end tax pointers - 12/16/11 02:07 PM
As the year draws to a close, time to do a little market assessment....
It's a buyer's market, for homes and investment. Short sale and REO values are low due to market weakness and over-supply. REO rehab values are even weaker due to lack of mortgage programs to finance them. (Ever wondered why the lender doesn't just provide the loan?) Rental markets are strong. (I prefer 2,3,4 unit investment). More info. Mortgage financing is (an inceasingly more) fickle business. Thorough prequalification is key. Here is a form you can use to get a PQ from me. Credit improvement is even more fickle, and also becoming … (0 comments)
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reo: You can have >1 FHA loan - Mortgages after foreclosure, short sale - New REO inv company - 12/03/11 04:11 PM
Developers present me with REO projects on a daily basis. They need financing and investor capital. I am starting a new company dedicated to highly profitable, short-term, REO investments. If you are interested in being part of this as a (founding) shareholder, let me know. /// This week a quick review of mortgages after deed in lieu, foreclosure, or pre-foreclosure (short) sale. See below, or go to my website. - Paul :)
Can you have more than 1 FHA loan?Yes, under the following cirumstances:
Relocation. Must document unreasonable commute distance from current home. Increase in family size. Must have current mortgage balance at or below 75% LTV. Vacating jointly owned … (0 comments)
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reo: Homepath reno loans - Credit refresher - Why REO rehabs are cheap, and tough to buy - 05/07/11 09:55 PM
We offer Homepath renovation loans. Prospect is a national Top 5 lender for FHA 203K loans and Homepath loans. We now also offer the Homepath renovation loan. See below. /// I am still waiting for the launch of a new construction/rehab program. Without it REO rehabs remain super cheap, and also tough to buy. See below. /// Contact me for expert service. I'm open for business! - PaulHomepath renovation loanHere are the highlights. Also note the current incentives offered.* High LTV: 97% financing available for O/O SFR properties* Loan amount is based on the as-completed value or purchase price and improvements, whichever is less* Renovation funds are included … (0 comments)
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reo: Why rehab REOs are so cheap - Homepath incentives - Declines for no good reason? - 04/23/11 01:14 PM
The reason liquidation values of 1-4 unit, rehab, REOs are so low is because other than the FHA 203K (Prospect is the #2 FHA 203K lender in the country) there are no mainstream financing programs available. For investors there is no financing at all! In addition, seller ("the bank") usually wants you to close in 30 days, which is virtually impossible. This supresses the liquidation value of these types of properties even further. And it also means opportunity! How to invest? How to finance? How to sell under these circumstances? (See below). /// Closing cost assistance is offered on new Homepath purchase through June 30th … (2 comments)
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reo: Fix-Flip funding, 100%xcost, 1-4 units, NJ, NY, PA - 04/03/11 11:47 AM
Fix-flips are lucrative because lenders need to liquidiate. The fact that there is no mainstream investor financing available further suppresses the liquidation price. LX Financial can fund up to 100%xcost. We need ARV 150%xcost. Go here for a scenario quote: www.fixflipnow.com
… (0 comments)
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reo: Senate approves tax credit close extension - 90%LTV without PMI - Homepath - Credit tip #3: Card balances - 06/18/10 03:36 PM
The Senate has approved an extension of the closing date for tax credit deals. The House has not yet. Details. /// Reminder: Fannie Mae has 93,000 REOs to sell through Homepath, and Prospect is an approved lender. See below. /// We now have up to 90%ltv available without PMI. See below. /// Make it a good week folks. - Paul Up to 90%ltv without mortgage insurance
The FHA upftront premium is now 2.25%, up from 1.75%, which was up from 1.5% - that's up 50% total. The annual is 0.55%, up from 0.50%. Conventional is up significantly also, plus you need a … (3 comments)
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reo: Distressed RE loans - High Jumbo rates still high - "Cram-Downs" - 01/09/09 07:27 PM
It appears that the stimulus plan set to be proposed by President-elect Barack Obama will include the long-contested "cram-down" proposal, which allows bankruptcy courts to modify the terms of a mortgage loan. The most common criticism is that this will raise the cost of borrowing for everybody because lenders need to charge risk premiums. (See below). As real estate pros we should welcome the initiative because it will contribute to the emergence of loan modfication standards. Right now it's a zoo. Having said that, I think that some of the deals we can get for loan loan mods may not be … (3 comments)
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