| |
reo financing: 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)
|
reo financing: REO investments with limited hands-on involvement - 02/28/12 10:06 AM
REO InvestmentsNobody knows when real estate markets will rebound, but many people are looking to invest. The best opportunities are foreclosures and short sales. Banks own these properties but don’t want to lend money for buyers to take them off the banks hands. These are called "REO" properties, are often in need of repair, and can be purchased for 20-50 cents on the dollar.The next question is how to execute the project profitably. REO projects have inherent operational risks and hassles. Have you ever watched a rehab show on TV? Everything always takes longer and costs more than planned for, and the … (0 comments)
|
reo financing: 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)
|
reo financing: 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)
|
reo financing: 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)
|
reo financing: REO financing - Lending criteria - Mortgages after bankruptcy - 11/14/11 12:43 PM
All the money is being made in REOs at the moment. Lower risk than securities, and great cash on cash returns. You can buy them, or finance them at <50% loan to value. To add yourself to the mailing list for opportunities go here. /// This week a quick review of mortgages after bankruptcy. In short, the waiting period for FHA is 24 months, and for Conventional 48 months. See below. Next week: Waiting periods following foreclosure, short sale, or modification. /// Rates are still near record lows, but underwriting criteria are becoming tougher: Higher Fico requirements and rental revenue exclusions from … (0 comments)
|
reo financing: 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)
|
reo financing: 203K direct lender - 1 in 3 apps declined - HAMP laswuit - REO finance+investment - 04/08/11 06:07 PM
As many as 1 in 3 applications are declined, so says the Fed. My average definitely better :) but the fact is that the current maze of regressive rules is a real challenge - and risk-based pricing makes getting the best rate difficult to attain. More info. /// It's about time! A homeowner is suing her loan servicer for denying a HAMP modification alleging they never had any intention of permanently modifying her home loan payments to an affordable amount despite having her make a slew of trial payments. I have hear this many times! /// Rates were up a little this week /// And lastly, a reminder that … (0 comments)
|
reo financing: 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)
|
reo financing: 30-yr at 5.05% - Heloc to 85%LTV again - Avoiding PMI - Seller Concessions - 02/11/11 07:34 PM
30-yr skirting 5%. ARMs are well priced.The 30-yr fixed crossed the 5% mark this week, and the trend is not reversing for now. ARMs are relatively better priced. Check the rates. /// Why do we use seller concessions again? (See below) /// 85%LTV helocs and seconds are available again! - PaulSeller concessionsThe mere mention of a SC used give rise to a healthy dose of scepticism.Yet, they are (always been) allowed by virtually all mainstream mortgage programs. FHA announced an intention to at least partically eliminate SCs last year, but so far nothing has come of it. Why a seller concession?
1. Reduce the cash … (0 comments)
|
reo financing: 2011 opportunities, mortgage trends, credit checklist - 01/01/11 06:06 PM
Happy New Year, and best wishes to all for 2011! I see opportunities on the investment front: the economics of rental and fix-flip properties make a lot of sense. I have both loans, and investors for this. /// Home buyers, often driven by market stats, will probably not be in a hurry, but maybe they should be! There are deals to be had now which will be gone once the market turns or flattens. Regardless, I am ready with professional support and financing. /// Note that construction and rehab financing is now available for investment and owner-occupied property. /// Let's get busy! - Paul
- To apply … (0 comments)
|
|
|
|
|
|
Mortgage financing news and topics, and meaningful advice for real estate professionals and consumers.
 Listings
Links
Archives
|
;)
;)
;)
