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UTPhil2006

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Just wanted to say what a great job Thad and Phil did for me.  Thad helped me get my old house remodeled with his crew for a fraction of what it was going to cost otherwise.  Helped us find a house that we liked and the transaction went smooth, other than my wife leaving her license at home during closing but that is more a topic for "Stupid shit my wife does" thread.  

Thad had us on a premarketing list and the first people that looked at our old house made an offer and we are closing today.  Couldn't have asked for things to go any smoother on both transactions.

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1 hour ago, Buck Strickland said:

Just wanted to say what a great job Thad and Phil did for me.  Thad helped me get my old house remodeled with his crew for a fraction of what it was going to cost otherwise.  Helped us find a house that we liked and the transaction went smooth, other than my wife leaving her license at home during closing but that is more a topic for "Stupid shit my wife does" thread.  

Thad had us on a premarketing list and the first people that looked at our old house made an offer and we are closing today.  Couldn't have asked for things to go any smoother on both transactions.

Thanks bud! Glad we could get you taken care of on multiple fronts!

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18 hours ago, Gil Bang said:

Yeah, that sounds like a title company problem.  The Reconveyance should have been recorded. 

Also this, title should definitely have things from the previous time they closed.

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On 4/16/2018 at 2:18 PM, next2naus said:

shit that pisses me off...seller of the house I'm buying cannot find her mortgage satisfaction letter, which we need for me to get my mortgage and close on this house. who loses/misplaces shit like that? Her old lender is moving slow to find a copy as well. 

is this in Texas?

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45 minutes ago, UTPhil2006 said:

is this in Texas?

Nope, NY. the seller "got the house" in her divorce and when the husband left he apparently took all the documents. She can get what she (we) need from the previous lender but they have little interest in doing this quickly, she should also be able to get this "satisfaction" info via a title search if I'm not wrong. We wanted to clone on Monday but now that's basically blown as I have meetings on Monday, we need to do the walk through first as well. it's a day for the walk through and day for the closing. (we currently live in the city and the house is in the burbs). Our nanny has a doctor appointment on Tuesday so that's a blown day. 

I don't mind moving the close if I could just get her, to get her shit together so we could commit to the dates. 

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On 4/9/2018 at 9:57 AM, UTPhil2006 said:

Still hovering between this and 2.80 depending on the Fed, China, etc

Back up to 2.90 area.  Basically we go up to around 2.95 then down to 2.75 and hover in between in the interim, at least that's how it's been for about the last 90 days for those that have asked about rates or the future of rates.

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Whats the smarter move...

 

take money out of my down payment to pay off specials(35K total, roughly 350/mo), or using that money to put 20% down and eliminating PMI/having the lower mortgage?

 

Its almost a wash for my total monthly payment, but Id still have 10% down if I paid off the specials, and I figure itd be quicker to get to that 20% then refinance vs taking 20-25 years to pay off specials, any advice? 

Edited by MNLonghornFUKM

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13 hours ago, MNLonghornFUKM said:

Whats the smarter move...

 

take money out of my down payment to pay off specials(35K total, roughly 350/mo), or using that money to put 20% down and eliminating PMI/having the lower mortgage?

 

Its almost a wash for my total monthly payment, but Id still have 10% down if I paid off the specials, and I figure itd be quicker to get to that 20% then refinance vs taking 20-25 years to pay off specials, any advice? 

20% down 

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Highest priced sale in LA County history just went down.  $110 mil for a Malibu estate.  To a Texan no less.

Quote

The priciest home on Malibu's famed Billionaire's Beach has found a bona fide billionaire buyer.

In what will be the most expensive home sale ever for Los Angeles County, hotelier Peter Morton has an agreement in place to sell his oceanfront property in Malibu's Carbon Beach, better known as Billionaire's Beach, to natural gas billionaire Michael S. Smith and his wife, Iris Smith, for $110 million.

 
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It's an astronomical sale even in the world of luxury real estate. The previous county record was $100 million, which was hit twice in 2016: for the sale of the Playboy Mansion in Holmby Hills, and for a mega-mansion built on speculation in the same neighborhood.

The Malibu sale, expected to close Tuesday, is the latest huge deal for the exclusive beachfront city, where two $85-million sales have closed in the last year and a half.

 
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Long a local getaway for Hollywood's elite and, more recently, a favorite haven and investment area for tech entrepreneurs, Malibu continues to open pocket books. If only there were more of it to go around.

"There are never going to be that many giant sales [in Malibu], because there are only so many homes that have a lot of beachfront and multiple parcels," said Jack Pritchett, co-founder of Malibu-based brokerage Pritchett-Rapf Realtors. "We can say $110 million is a joke, but you can't find multiple-lot properties like Morton's."

Squeezed between two homes owned by Oracle Corp. co-founder Larry Ellison, the half-acre property on Pacific Coast Highway comprises two parcels with two structures and more than 100 feet of beach frontage.

Morton, 70, acquired the two properties over the last three decades in separate transactions totaling $5.6 million, public records show, and commissioned architect Richard Meier to design the compound.

Wrapped in rich teak wood, the main house and guesthouse combine to offer seven bedrooms, nine bathrooms and about 8,000 square feet of living space. Shutters and windows throughout the contemporary homes are automated, and wrap-around balconies are centered toward the ocean.

A swimming pool and a courtyard garden filled with native beach landscaping make up the grounds. Wood-plank walkways connect the structures while leading to the shoreline.

Hilton & Hyland agent Brandon Williams, who teamed with his wife, Rayni, to sell Morton's home, said the Hard Rock Cafe co-founder had no intention of selling property when Williams first broached the topic two years ago.

Morton was hesitant at first, Williams said, but the real estate agent knew the hotelier was spending most of his time in the Hamptons in New York.

"I'd worked with Peter before. This was my eighth or ninth deal with him," Williams said. "He trusted me."

Williams asked for a number; Morton came back with $110 million.

What followed was a two-year courtship of the buyers that included multiple showings and saw them leasing the property for an extended period of time. Barry Peele of Sotheby's International Realty represented the Smiths in the sale.

Smith is the chairman and chief executive of Freeport LNG Development, a Texas energy company that offers vacuum-insulated gas transfer lines, regasification services and storage facilities for liquefied natural gas. He previously served as president of both the Colorado Oil & Gas Assn. and Basin Exploration Inc.

Williams confirmed that the $110-million price is for the home only; furniture and artwork, negotiated items often used as deal sweeteners in the high-end market, were not included in the sale.

What will be the next big domino to fall in L.A.'s red-hot luxury market? There are plenty of candidates.

Four L.A.-area homes are currently priced at $110 million or more, according to the Multiple Listing Service, not to mention a handful of large estates and spec-built mansions circulating as pocket listings from $100 million to $500 million.

Atop the MLS list is the onetime Holmby Hills home of Candy Spelling that currently lists for $200 million. Known simply as the Manor, the 56,600-square-foot palatial estate is the largest single-family home in Los Angeles County. It has spent more than 17 months on the market since its current owner, Petra Ecclestone, listed it.

And still up for grabs is Billionaire, the larger-than-life compound developed by handbag mogul Bruce Makowsky. The amenity-filled compound was reintroduced to the market last week at $188 million, a 25% reduction from its original price of $250 million.

For those holding out for a market correction, a warning: Don't expect to see one soon, if it all.

"I would have thought we'd have another recession two years ago," said Jeff Hyland, co-founder of Hilton & Hyland. "Even if things start slowing down in other parts of the country, like Manhattan, where you can build another high-rise, you're not going to see that in L.A. because there's no land left."

A limited supply of homes on the market has continued to drive up price appreciation throughout the Southland. In March, median home prices in Southern California climbed 8.4% from a year earlier, setting a new all-time high.

The same goes for the luxury market, particularly in leading sub-markets such as Malibu, where an eroding coastline has been a topic of conversation for years.

Sales activity indicates that while some long-term investors are bearish on the consequences of climate change, others have no issue with it, according to Paul Habibi, a professor of real estate at UCLA.

When Hyland shows homes in Malibu to clients, he does so with a caveat: The property may not be here for your grandchildren. But even with potential issues down the line, he says most people aren't dissuaded.

"They're looking to enjoy themselves now," Hyland said.

For the rich and famous looking to enjoy themselves, Carbon Beach has long been an appealing address.

Ellison is perhaps Billionaire Beach's most well-known resident; over the last two decades, he's purchased at least a dozen properties in the beachfront area.

Other notable homeowners include film studio head Jeffrey Katzenberg and billionaire Eli Broad. Former Dodgers owner Jamie McCourt bought her Carbon Beach home a decade ago from "Friends" actress Courteney Cox. Oscar-winner Leonardo DiCaprio sold his longtime home in the area two years ago.

Meanwhile, median home price in the six counties consituting SoCal set a new record of $519K.  It really is out of hand.  My wife has been pushing for a new house, but no way.  If I sold and rebought my own home, my property taxes would likely more than double.  Taking a step up to a larger house is a non-starter.

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On 4/20/2018 at 8:42 AM, UTPhil2006 said:

Back up to 2.90 area.  Basically we go up to around 2.95 then down to 2.75 and hover in between in the interim, at least that's how it's been for about the last 90 days for those that have asked about rates or the future of rates.

Passed 3.00 for the first time since 2013 sitting at 3.03 currently. 

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On 4/25/2018 at 1:34 PM, UTPhil2006 said:

Passed 3.00 for the first time since 2013 sitting at 3.03 currently. 

Got about 10 points of it back.  Hopefully keeps sliding back down, especially with the housing market really about to heat up for Summer season

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Back on the other site several people had tossed out questions to those with more experience to see if they thought it was a solid deal.

 

I'm looking at a house that currently has a tenant paying $700 a month that would like to stay.  It is a small 2 bedroom 780 sqft house, built in the mid 60s, near a good elementary, 1/3 of an acre, near TX city.  The seller wants 60k for it.  It was listed in 2015 for 34k, went to pending sale, and then the listing was removed.  It is definitely the smaller of the homes in the neighborhood, and probably on the lowest priced of them.

 

50% increase in price since 2015 seems steep.  I'd be looking at 460 a month in mortgage, taxes, and Ins (I'm being pessimistic, that might be a little high).  So $240 a month in cash before having to pay for the random garbage disposal that goes out.

Thoughts?  I feel like for only $700 a month, 45k is a more reasonable price.

Edited by UT_OB1

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6 minutes ago, UT_OB1 said:

Back on the other site several people had tossed out questions to those with more experience to see if they thought it was a solid deal.

 

I'm looking at a house that currently has a tenant paying $700 a month that would like to stay.  It is a small 2 bedroom 780 sqft house, built in the mid 60s, near a good elementary, 1/3 of an acre, near TX city.  The seller wants 60k for it.  It was listed in 2015 for 34k, went to pending sale, and then the listing was removed.  It is definitely the smaller of the homes in the neighborhood, and probably on the lowest priced of them.

 

50% increase in price since 2015 seems steep.  I'd be looking at 460 a month in mortgage, taxes, and Ins (I'm being pessimistic, that might be a little high).  So $240 a month in cash before having to pay for the random garbage disposal that goes out.

Thoughts?  I feel like for only $700 a month, 45k is a more reasonable price.

Hell, can't edit post.  

I forgot to add in a 1% repair estimate.  So that'd actually be 501 in monthly costs, with a cash flow 190 a month.

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2 minutes ago, next2naus said:

I just closed yesterday, 4 checks and 50 minutes of passing paper and signing my name

Did they say how they finally found the paperwork that should have taken 5 min to find? 

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3 hours ago, UTPhil2006 said:

Did they say how they finally found the paperwork that should have taken 5 min to find? 

funny, they actually talked about how prepared we were and how smooth and fast it was compared to the closing they did before ours. It was less than an hour. 

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8 hours ago, UT_OB1 said:

Back on the other site several people had tossed out questions to those with more experience to see if they thought it was a solid deal.

 

I'm looking at a house that currently has a tenant paying $700 a month that would like to stay.  It is a small 2 bedroom 780 sqft house, built in the mid 60s, near a good elementary, 1/3 of an acre, near TX city.  The seller wants 60k for it.  It was listed in 2015 for 34k, went to pending sale, and then the listing was removed.  It is definitely the smaller of the homes in the neighborhood, and probably on the lowest priced of them.

 

50% increase in price since 2015 seems steep.  I'd be looking at 460 a month in mortgage, taxes, and Ins (I'm being pessimistic, that might be a little high).  So $240 a month in cash before having to pay for the random garbage disposal that goes out.

Thoughts?  I feel like for only $700 a month, 45k is a more reasonable price.

You can use the rental income as the deal breaker for you,  but you can't expect the seller to consider rents when pricing the home.  Comparable sales are really all that matters. 

Also, you really need to be considering cash-on-cash return.  How much are you putting down?  You're getting $240/mo return on that cash investment, not on the sales price of the home. 

Let's assume that you are putting $12,000 down.  Your annual return is $2,880 on that $12,000 investment.  That's a pretty great ROI. 

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There were 2 thoughts going on that i jumbled together.  My annual return would be $2200 a year if nothing breaks.  Being that this is a 50+ year old house, i'm expecting something to happen.  So at 60k for the house i don't think the return is worth the risk.  Also, the $/ft2 at 76 appears to be the same or higher than other homes in the area that aren't over 50 years old and in better shape.  

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Anyone in DFW have any experience with Western Acquisition (or something similarly named). In-laws needing to quick sell their place and have an offer in-hand from said company that seems relatively fair (but what the fuck do I know). I'm adamant they talk to a realtor. 

Sent you an email Phil. 

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You mean New Western Acquisition?  They're a wholesaler.  They'll "buy" your house or at least put $5k down toward the purchase price then in turn add a small profit or just a $5k fee to whomever they in turn sell it to.  They'll 3rd party assign the contract to a flipper.  Generally that means that they agree to buy your house but in reality they're just the middleman for someone else to end up with the property.  The advantage to them is that they'll risk $5k to earn $5k in less than one month, which is a fantastic business model.

They're going to price the house according to the repairs needed to fix it up and add a little profit at the end for flippers.  That's the wholesale price.  There are a ton of companies and if they need a fast close I can give you the name of a few to price compare or hell I flip houses in Tarrant County so I can go give them an estimate or a bid as long as I'm not driving to north Dallas or anywhere else 40+ minutes from my house.

They're an honest company as far as I know.  If you sign a contract they'll honor it.  Just expect a fairly low bid, say 60 cents on the dollar but you can get paid in a few days or up to two weeks depending on the situation.  The title has to be able to clear so whatever price they offer has to exceed what's owed to the bank or the owner has to pay the difference.

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Thanks for the info Tx/Phil, that's about what I had assumed. Stubborn MIL is despondent about the house - It needs a roof and some other things and she's completely overwhelmed. Needs the cash sooner rather than later but I'm trying to get her to listen to reason/talk to an actual realtor so she at least knows where she stands. 

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1 hour ago, vicerous said:

Thanks for the info Tx/Phil, that's about what I had assumed. Stubborn MIL is despondent about the house - It needs a roof and some other things and she's completely overwhelmed. Needs the cash sooner rather than later but I'm trying to get her to listen to reason/talk to an actual realtor so she at least knows where she stands. 

Despite whatever repairs are needed her house in the metroplex has never been worth more.  Obviously the disadvantage to a realtor is the 6% commission but unless she bought the house just a few years ago she should have equity in it and assuming she's been there 20+ years her house could have doubled in value.  The roof is not nearly as big a deal as a new kitchen or bathrooms though that's going to be a big ticket item that gets her a lower offer.  My point is avoid a roofing company and find a roofer who works for one but does jobs on the side.  She'll need cash to pay but save 20% or more on the total job.  

Like I said if she's anywhere near Jerryworld I'll go by and give you an honest wholesale offer.  It won't be top dollar but nobody is going to offer top dollar to a house in need of repairs.

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7 hours ago, vicerous said:

Thanks for the info Tx/Phil, that's about what I had assumed. Stubborn MIL is despondent about the house - It needs a roof and some other things and she's completely overwhelmed. Needs the cash sooner rather than later but I'm trying to get her to listen to reason/talk to an actual realtor so she at least knows where she stands. 

Yep we’ll for sure give her a call today to go over things. 

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Phil - what do current rates look like in Austin for a 15yr fixed 2nd home (rental property).  740+ with 20 or 25% down.  Conforming loan.

Edited by FigurelliPwC

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4 hours ago, FigurelliPwC said:

Phil - what do current rates look like in Austin for a 15yr fixed 2nd home (rental property).  740+ with 20 or 25% down.  Conforming loan.

5.0 on a 15 and 5.25 or so on a 30. Our rate sheets don’t like the 15 year inv route apparently 

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18 hours ago, UTPhil2006 said:

5.0 on a 15 and 5.25 or so on a 30. Our rate sheets don’t like the 15 year inv route apparently 

Thanks Phil, that is exactly what my lender quoted so that makes me feel better.  He suggested we go with the 30 and just make extra payments if we want to payoff sooner.

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On 5/4/2018 at 10:13 AM, FigurelliPwC said:

Thanks Phil, that is exactly what my lender quoted so that makes me feel better.  He suggested we go with the 30 and just make extra payments if we want to payoff sooner.

Yep that makes a lot of sense. You can always pay the 30 like a 15 and have that cushion if something comes up.  Especially in this case where the rates are almost the same. 

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I just did my 2nd refi with Phil and Prodigy. I am probably a worst case scenario, I live outside of the US (in a country that basically has a 1/2 page yearly income statement), have limited US income, had a high credit to asset ratio and have a condo that is a rental unit -- but the guys got it done.

Thanks! No more CC debt!

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1 hour ago, Fastbreak said:

I just did my 2nd refi with Phil and Prodigy. I am probably a worst case scenario, I live outside of the US (in a country that basically has a 1/2 page yearly income statement), have limited US income, had a high credit to asset ratio and have a condo that is a rental unit -- but the guys got it done.

Thanks! No more CC debt!

That's right people - Prodigy Mortgage is worldwide bitches!  Thanks for the kind words, glad we could take care of you again!

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What can y'all tell me about VA loans?

 

I'm a poor and it would take me a long time to save up a decent down payment, but I'm ex-military (honorable discharge) so I should qualify - but I don't know if there are any other quals.

 

We'd be looking for a cheap starter home with monthly payments as low as possible, and as little out-of-pocket as possible (like sellers covering closing costs, etc). Currently rent a house at about $900/mo. Been here 5+ years. Never owned a home. Wife is a teacher with AISD and we've heard there are some programs to help them buy a home, too.

 

About all I know about VA loans is that they are supposed to be zero down, and no required mortgage insurance so you can supposedly get more house for your monthly payment (or a lower payment).

 

I've heard some sellers don't like to have buyers with VA loans because of the no down payment thing. True?

 

Feel free to answer here, as it might help someone else later.

 

 

 

 

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You are correct, VA is 0% down with no MI.  Seller can certainly help with closing costs as well (title, to be negotiated by your Realtor, which we can be and assist you with as well).  Credit score would be the other main qualification which as long as your 650+ (in most cases) and income requirements (Debt to income ratio) as well as making sure you are eligible for a VA loan (which it sounds like you are) via https://www.benefits.va.gov/HOMELOANS/purchaseco_certificate.asp

As far as sellers not liking VA loans, it just really depends.  It just is less wiggle room when the appraisal comes.  In a multiple offer situation they may choose a different loan because of stronger qualifications (higher earnest/option money, cash down, etc) but can't really speak to sellers across the board not liking them -- case by case basis.

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depends where the seller is located, IMO. I live in the shadow of Camp Pendleton, and VA loans are very common around here, and seller's don't bat an eye at them..

One thing to consider: you're not going to be able to buy a complete POS fixer with a VA loan.  There are minimum standards for the condition of the  home that a conventional lender will overlook.

Modessit:  Do you have your DD214?  If not, start looking for it now...you will need it. 

 

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45 minutes ago, Gil Bang said:

depends where the seller is located, IMO. I live in the shadow of Camp Pendleton, and VA loans are very common around here, and seller's don't bat an eye at them..

One thing to consider: you're not going to be able to buy a complete POS fixer with a VA loan.  There are minimum standards for the condition of the  home that a conventional lender will overlook.

Modessit:  Do you have your DD214?  If not, start looking for it now...you will need it. 

 

Guessing Austin because of teaching in AISD.  Good info on the minimum standards and DD214

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2 hours ago, UTPhil2006 said:

You are correct, VA is 0% down with no MI.  Seller can certainly help with closing costs as well (title, to be negotiated by your Realtor, which we can be and assist you with as well).  Credit score would be the other main qualification which as long as your 650+ (in most cases) and income requirements (Debt to income ratio) as well as making sure you are eligible for a VA loan (which it sounds like you are) via https://www.benefits.va.gov/HOMELOANS/purchaseco_certificate.asp

As far as sellers not liking VA loans, it just really depends.  It just is less wiggle room when the appraisal comes.  In a multiple offer situation they may choose a different loan because of stronger qualifications (higher earnest/option money, cash down, etc) but can't really speak to sellers across the board not liking them -- case by case basis.

I was in this situation as a seller a few years back - had multiple offers and I preferred a traditional over the VA loan for a couple of reason ( the offered a few thousand more - not much, the quicker closing was the most important to me). But then the traditional loan offer exercised the option to cancel and I went with the VA loan - so I would up getting paid a few hundred bucks for my trouble, and the VA loan buyer actually got the house. 

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For me the problem with VA loans is the longer closing time, never seen a VA loan close quicker than 30 days, and the extra inspections required by the VA regarding dumb things like plants and bushes too near the house that can supposedly carry in wood eating bugs.  

I've literally had to dig out a bush in December after a storm, so it was cold and muddy to the point to where the whole bush was gone and no roots were there as well in order to satisfy the VA inspector.  It was not what I planned to do the weekend before Christmas.  Point being that VA asks for things that conventional and even FA loans don't and most sellers don't want to deal with the extra delays and hassles.  VA loans always cost me more in "required repairs before the loan can be approved and the property closed."  

You've gotta do what you've got to do but don't be surprised or hurt, in this hot market, if you don't get the first, second, or third house you put an offer on because the seller chose the other loan options.

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On 5/3/2018 at 12:26 PM, UTPhil2006 said:

5.0 on a 15 and 5.25 or so on a 30. Our rate sheets don’t like the 15 year inv route apparently 

Man, I caught the bottom of the rate dip when I refi'd into a 15-yr fixed in Oct '16.  2.75%.  And it is a beautiful thing paying more than double in principal than I am paying in interest.

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2 minutes ago, TxEx99 said:

For me the problem with VA loans is the longer closing time, never seen a VA loan close quicker than 30 days, and the extra inspections required by the VA regarding dumb things like plants and bushes too near the house that can supposedly carry in wood eating bugs.  

I've literally had to dig out a bush in December after a storm, so it was cold and muddy to the point to where the whole bush was gone and no roots were there as well in order to satisfy the VA inspector.  It was not what I planned to do the weekend before Christmas.  Point being that VA asks for things that conventional and even FA loans don't and most sellers don't want to deal with the extra delays and hassles.  VA loans always cost me more in "required repairs before the loan can be approved and the property closed."  

You've gotta do what you've got to do but don't be surprised or hurt, in this hot market, if you don't get the first, second, or third house you put an offer on because the seller chose the other loan options.

I would wager in your cases, the lender doesn't do a lot of VA.  As I mentioned earlier, we do a  lot of VA out here, and close them in 21 days or so often. 

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2 minutes ago, Sbbruin said:

Man, I caught the bottom of the rate dip when I refi'd into a 15-yr fixed in Oct '16.  2.75%.  And it is a beautiful thing paying more than double in principal than I am paying in interest.

That 15 year quote was for an investment property so naturally higher, but I get what you're saying.

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Anyone ever done an owner finance as a seller? I’m kicking that around as an idea and have indicated owner financing is available on my listing.

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3 minutes ago, Dbeasy said:

Anyone ever done an owner finance as a seller? I’m kicking that around as an idea and have indicated owner financing is available on my listing.

Why on earth would you want to?

 

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Why on earth would you want to?
 

Higher sales price, and a return in investment on the cash in the house of >5%, which is better than bonds right now.

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12 minutes ago, Dbeasy said:


Higher sales price, and a return in investment on the cash in the house of >5%, which is better than bonds right now.

How much in legal fees and lost payments does it cost to foreclose on someone for non-payment?

No idea but that's my first thought at the idea of owner financing.

 

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16 minutes ago, Dbeasy said:

Anyone ever done an owner finance as a seller? I’m kicking that around as an idea and have indicated owner financing is available on my listing.

First, are you in Texas?  If "yes", does TX have "HERO" or "PACE" loans?  If so, don't carry paper.  

Let's say that the property value is 100,000 for simplicity's sake.  Buyer puts down $20,000, you hold a note for $80,000.   Buyer then gets a HERO or PACE loan for 40,000 worth of new windows, solar, whatever.  That loan goes ahead of your note.  Sure, the property is improved, but it's not likely worth $140,000 after the improvements.

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