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UTPhil2006

All Encompassing Mortgage and Real Estate Thread

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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.

It is Texas. Phil would need to weigh in here, but I don’t think there are any Texas based loans that can go ahead of the mortgage.

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1 minute ago, Dbeasy said:


It is Texas. Phil would need to weigh in here, but I don’t think there are any Texas based loans that can go ahead of the mortgage.

The ones I'm talking about get attached to the tax bill.  

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a quick googles found:

Quote

Texas Property Assessed Clean Energy (PACE) Program

Texas Property Assessed Clean Energy (PACE) Program is a simple and affordable way to finance energy and water efficiency upgrades for commercial properties. PACE provides low cost, long-term, 100% financing for these qualified “Green” improvements. Eligible upgrades are financed over time through a voluntary property tax assessment attached to the property. PACE improvements add value to the property and reduce utility bills with the upgrades typically paying for themselves with positive cash flow over time.

Lone Star PACE provides energy efficiency, renewable energy and water conservation improvements to existing properties while generating tangible benefits to property owners, local governments, contractors and the community as a whole. PACE financing requires lender consent for any existing mortgage and the assessment is attached to the property. This provides flexibility as the assessment can either be paid off or assumed by the new owner in the event of a property sale[/quote]

so yeah, this is commercial, but it's what I'm talking about

Edited by Gil Bang

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1 hour ago, CooterBrown said:

Why on earth would you want to?

 

If I'm holding the note it's because the buyer can't otherwise qualify and he/she is paying me 8-10% interest.  So a 15 year note at 9% interest is a fantastic option.  Just make sure they put down no less than 5k.  If you can squeeze 10k even better (on notes $120k or less, obviously the bigger the note the bigger the down payment).  Make sure they have some skin in the game so that leaving the property via foreclosure or deed in lieu of foreclosure is not the route they want to go.  

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5,000-10,000 can disappear pretty quickly in foreclosure costs, carry costs (if buyer quits making payments), damages to the home, replacement of shit the buyer stole, etc. 

IMO anything less than 20% down is a major risk.  Also, I'd recommend impounding taxes and insurance.

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1 hour ago, Dbeasy said:


It is Texas. Phil would need to weigh in here, but I don’t think there are any Texas based loans that can go ahead of the mortgage.

Correct

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I have my DD214 so that's not an issue. I remember reading about the inspection issue. Not sure about credit scores for me and the wife (she was behind on student loans for a while) so I'll check that out. Wasn't planning on a fixer upper, but probably something in the $100k range outside Austin proper - preferably in or near Round Rock - although if the no MI requirement allows a low enough monthly payment then that price point might go up.

 

The hot market concerned me about VA loans and owners accepting them. I remember a while back watching one of the house hunting shows where a Navy guy in CA with a VA loan went thru 35 properties before finally closing on one.

 

 

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I have my DD214 so that's not an issue. I remember reading about the inspection issue. Not sure about credit scores for me and the wife (she was behind on student loans for a while) so I'll check that out. Wasn't planning on a fixer upper, but probably something in the $100k range outside Austin proper - preferably in or near Round Rock - although if the no MI requirement allows a low enough monthly payment then that price point might go up.
 
The hot market concerned me about VA loans and owners accepting them. I remember a while back watching one of the house hunting shows where a Navy guy in CA with a VA loan went thru 35 properties before finally closing on one.
 
 

When the CA market is hot, it’s that way for a lot of folks, not just VA. Cash is king.

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I sent you a PM, but I can send you properties that match that criteria so you kind of know what you're looking at.  Just let me know.

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I sent you a PM, but I can send you properties that match that criteria so you kind of know what you're looking at.  Just let me know.
Until I know if my credit scores are in the proper range, it makes no sense starting anything. Have to know I can get a loan first before I can think about buying. If my scores are too bad then I work on it for a year and then check into it again.

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On 5/11/2018 at 9:07 PM, Modessit said:
On 5/11/2018 at 8:35 AM, UTPhil2006 said:
I sent you a PM, but I can send you properties that match that criteria so you kind of know what you're looking at.  Just let me know.

Until I know if my credit scores are in the proper range, it makes no sense starting anything. Have to know I can get a loan first before I can think about buying. If my scores are too bad then I work on it for a year and then check into it again.

We can assist with that 

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1 hour ago, UTPhil2006 said:

We can assist with that 

Yeah, unless you're more sophisticated than most, I'd seek a pro's counsel when trying to improve credit scores.  Say you have an old collection account...sometimes you want to pay them off, sometimes you don't.  Not enough current accounts?  Secured credit cards can be effective if used properly.

There's a lot of ins, a lot of outs, a lot of what-have-yous. 

Consult Phil (or somebody else that know's what the F they're doing).

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On 5/11/2018 at 6:57 AM, Modessit said:

I have my DD214 so that's not an issue. I remember reading about the inspection issue. Not sure about credit scores for me and the wife (she was behind on student loans for a while) so I'll check that out. Wasn't planning on a fixer upper, but probably something in the $100k range outside Austin proper - preferably in or near Round Rock - although if the no MI requirement allows a low enough monthly payment then that price point might go up.

 

The hot market concerned me about VA loans and owners accepting them. I remember a while back watching one of the house hunting shows where a Navy guy in CA with a VA loan went thru 35 properties before finally closing on one.

 

 

I bought a house in the Denver metro area a year and a half ago on a VA loan. You should be fine.

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On 5/11/2018 at 7:57 AM, Modessit said:

I have my DD214 so that's not an issue. I remember reading about the inspection issue. Not sure about credit scores for me and the wife (she was behind on student loans for a while) so I'll check that out. Wasn't planning on a fixer upper, but probably something in the $100k range outside Austin proper - preferably in or near Round Rock - although if the no MI requirement allows a low enough monthly payment then that price point might go up.

 

The hot market concerned me about VA loans and owners accepting them. I remember a while back watching one of the house hunting shows where a Navy guy in CA with a VA loan went thru 35 properties before finally closing on one.

 

 

Do you have an account with USAA?

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RE: VA loans, if you have a disability rating of at least 10%, it can cap some of the closing cost fees.

 

 

“You do not have to pay the fee if you are a:

Veteran receiving VA compensation for a service-connected disability, OR

Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR

Surviving spouse of a Veteran who died in service or from a service-connected disability”

 

https://www.benefits.va.gov/HOMELOANS/purchaseco_loan_fee.asp

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Commercial lease question. Texas. Retail space. Tenant installed track lighting. Do the track fixtures have to stay upon termination, or just the track? Track is affixed with screws and hardwired in. Fixtures are just snapped in to track and can be easily moved/removed. Thanks

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On 5/18/2018 at 2:01 PM, Texaus said:

Commercial lease question. Texas. Retail space. Tenant installed track lighting. Do the track fixtures have to stay upon termination, or just the track? Track is affixed with screws and hardwired in. Fixtures are just snapped in to track and can be easily moved/removed. Thanks

Commercial guys can step in, but my reading of that is they should stay 

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I know it's a TX lease question. 

In CA, there's no hard-and-fast rule on commercial. The only correct answer is "read the lease".  The answer is in there. 

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On 5/11/2018 at 7:57 AM, Modessit said:

I have my DD214 so that's not an issue. I remember reading about the inspection issue. Not sure about credit scores for me and the wife (she was behind on student loans for a while) so I'll check that out. Wasn't planning on a fixer upper, but probably something in the $100k range outside Austin proper - preferably in or near Round Rock - although if the no MI requirement allows a low enough monthly payment then that price point might go up.

 

The hot market concerned me about VA loans and owners accepting them. I remember a while back watching one of the house hunting shows where a Navy guy in CA with a VA loan went thru 35 properties before finally closing on one.

 

 

Did you get my PM?

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18 hours ago, UTPhil2006 said:

10 year with a good 2 days trying to sneak back below 3.00 to 2.99 which would be a great reprieve from the last 2-3 weeks.

Down .04 again to 2.96... best in a couple months at this point

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I wanted to thank Phil for working with me. We ended up getting a family business partner, but Phil would have been the good option if that hadn’t fallen in to our laps. 

We are looking at a property to rent out in Galveston.  the current owners just signed some shit heads to the upper duplex. In one month they’ve taken a very nice recently cleaned up place and made it in to a mess. Dogs, cats, reptiles and their shit all over the tile floor. It is 2 bedrooms, and they have 2 kids plus someone seemed to be staying with them when we inspected?  And they managed to put a hole in one of the doors...

The siding is in need of repair.  1/3 has been replacef with hardi plank.  At least 1/3 needs some serious patching of the current wood so that water and bugs can’t get in.  I’d like to replace it, but I don’t think I can afford that now. Has no attic ventilation, roof was recently put on, but they didn’t put a rolled roof, so we’ll need to add the ventilation so that the roof makes it hopefully 5 years.  

 

first question - as long as they are paying the rent, do you care about the shitty tenants?  Would this scare you away?  The money is what I consider very good as long as both are paying  ($600 a month in cash after paying bills).  My realtor, who I do trust and who manages quite a few properties, said stuff like that doesn’t bother him as long as they pay.  This is our first rental though  

second question, and this is a morals thing - for any of you doing this, have you or would you ever call cps?  Again, 2 small kids and literal shit all over the floor. Dad and whoever was staying with them passed out in the 2 bedrooms after 1 while we were doing inspection. Trash and food everywhere. Just didn’t seem healthy.  I’ve lived in some bad conditions, but it wasn’t for lack of trying. This just seemed... I don’t know. Hard to describe, and I felt terrible for the 2 little ones. 

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8 hours ago, UT_OB1 said:

I wanted to thank Phil for working with me. We ended up getting a family business partner, but Phil would have been the good option if that hadn’t fallen in to our laps. 

We are looking at a property to rent out in Galveston.  the current owners just signed some shit heads to the upper duplex. In one month they’ve taken a very nice recently cleaned up place and made it in to a mess. Dogs, cats, reptiles and their shit all over the tile floor. It is 2 bedrooms, and they have 2 kids plus someone seemed to be staying with them when we inspected?  And they managed to put a hole in one of the doors...

The siding is in need of repair.  1/3 has been replacef with hardi plank.  At least 1/3 needs some serious patching of the current wood so that water and bugs can’t get in.  I’d like to replace it, but I don’t think I can afford that now. Has no attic ventilation, roof was recently put on, but they didn’t put a rolled roof, so we’ll need to add the ventilation so that the roof makes it hopefully 5 years.  

 

first question - as long as they are paying the rent, do you care about the shitty tenants?  Would this scare you away?  The money is what I consider very good as long as both are paying  ($600 a month in cash after paying bills).  My realtor, who I do trust and who manages quite a few properties, said stuff like that doesn’t bother him as long as they pay.  This is our first rental though  

second question, and this is a morals thing - for any of you doing this, have you or would you ever call cps?  Again, 2 small kids and literal shit all over the floor. Dad and whoever was staying with them passed out in the 2 bedrooms after 1 while we were doing inspection. Trash and food everywhere. Just didn’t seem healthy.  I’ve lived in some bad conditions, but it wasn’t for lack of trying. This just seemed... I don’t know. Hard to describe, and I felt terrible for the 2 little ones. 

Galveston CPS: 409-763-0277

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I’m afraid to ask but how long is CoA permitting taking for plans on a new residential buil?.  We hope to formally be submitting plans in a week or so and I’ve heard time ranges anywhere from a few weeks to a few months.  

Is it worth spending a few grand on an expedition or have their roles largely diminished now because of the backups?  

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On 5/28/2018 at 5:58 AM, Chet Steadman said:

I’m afraid to ask but how long is CoA permitting taking for plans on a new residential buil?.  We hope to formally be submitting plans in a week or so and I’ve heard time ranges anywhere from a few weeks to a few months.  

Is it worth spending a few grand on an expedition or have their roles largely diminished now because of the backups?  

We didn’t have too much of a problem on our flip recently. 

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10 year has fallen through the floor. Down 13 basis points to 2.80, down approximately 30 basis points over the past 10 days or so. Definitely a good step in the right direction after the last couple months. 

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On 5/28/2018 at 5:58 AM, Chet Steadman said:

I’m afraid to ask but how long is CoA permitting taking for plans on a new residential buil?.  We hope to formally be submitting plans in a week or so and I’ve heard time ranges anywhere from a few weeks to a few months.  

Is it worth spending a few grand on an expedition or have their roles largely diminished now because of the backups?  

My experience is primarily on the commercial side, but the expeditor is now the new normal.  Everyone uses them for every project, if you don't you are at the very back of the line. Again, my be different for residential. 

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On 5/27/2018 at 9:00 PM, UT_OB1 said:

I wanted to thank Phil for working with me. We ended up getting a family business partner, but Phil would have been the good option if that hadn’t fallen in to our laps. 

We are looking at a property to rent out in Galveston.  the current owners just signed some shit heads to the upper duplex. In one month they’ve taken a very nice recently cleaned up place and made it in to a mess. Dogs, cats, reptiles and their shit all over the tile floor. It is 2 bedrooms, and they have 2 kids plus someone seemed to be staying with them when we inspected?  And they managed to put a hole in one of the doors...

The siding is in need of repair.  1/3 has been replacef with hardi plank.  At least 1/3 needs some serious patching of the current wood so that water and bugs can’t get in.  I’d like to replace it, but I don’t think I can afford that now. Has no attic ventilation, roof was recently put on, but they didn’t put a rolled roof, so we’ll need to add the ventilation so that the roof makes it hopefully 5 years.  

 

first question - as long as they are paying the rent, do you care about the shitty tenants?  Would this scare you away?  The money is what I consider very good as long as both are paying  ($600 a month in cash after paying bills).  My realtor, who I do trust and who manages quite a few properties, said stuff like that doesn’t bother him as long as they pay.  This is our first rental though  

second question, and this is a morals thing - for any of you doing this, have you or would you ever call cps?  Again, 2 small kids and literal shit all over the floor. Dad and whoever was staying with them passed out in the 2 bedrooms after 1 while we were doing inspection. Trash and food everywhere. Just didn’t seem healthy.  I’ve lived in some bad conditions, but it wasn’t for lack of trying. This just seemed... I don’t know. Hard to describe, and I felt terrible for the 2 little ones. 

No worries bud.  Let me know if we can help any of your family or friends.

As far as the tenants, how much is it going to cost you to bring it back up to a clean space again?  How much of that profit would that be eating?

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Hello, All.

We’re in the process of getting a new home built and our State Farm rep forwarded us reference to their Water Damage and Foundation Endorsements.

They stated that they make the homeowner aware of these endorsements at the start of a policy because if the policy does not begin with the endorsements, they cannot be added at a later date. We can elect to have either or both endorsements on the prospective State Farm Homeowners policy.

We’re building in Dallas proper and it isn’t a flood zone or the area isn’t flood prone that I know of. This would probably be a no-brainer in Houston though.

Anyone have experience with this? Any advice or recs?

Thanks

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Flood would be a separate policy, not an endorsement to a HO policy.  Is this an endorsement for water discharges? 


It’s defined as coverage provided for deterioration, wet rot or dry caused by continuous or repeated seepage or leakage of water or steam from a heating, air conditioning or automatic fire protective sprinkler system, household appliance or plumbing system.

Thanks

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15 hours ago, Stunns38 said:

 


It’s defined as coverage provided for deterioration, wet rot or dry caused by continuous or repeated seepage or leakage of water or steam from a heating, air conditioning or automatic fire protective sprinkler system, household appliance or plumbing system.

Thanks

 

Sounds like it wouldn't be the worst idea to have.

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Quick update on our cash out programs.. one of our lenders now will go up to 85% LTV instead of 80% as long as it is the Primary Residence and 740+ credit

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16 minutes ago, UTPhil2006 said:

Quick update on our cash out programs.. one of our lenders now will go up to 85% LTV instead of 80% as long as it is the Primary Residence and 740+ credit

Nix that.  They just sent out a retraction email for all branches in Texas.  I was curious how they were getting around Texas' law.

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On 5/24/2018 at 9:35 AM, UTPhil2006 said:

Down .04 again to 2.96... best in a couple months at this point

Got down to 2.76 and has now leveled off in the low 2.9's so kind of back to where we've been most of the year, and certainly a welcome reprieve from the 3.12 we were at a week or two ago

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On 5/27/2018 at 9:00 PM, UT_OB1 said:

I wanted to thank Phil for working with me. We ended up getting a family business partner, but Phil would have been the good option if that hadn’t fallen in to our laps. 

We are looking at a property to rent out in Galveston.  the current owners just signed some shit heads to the upper duplex. In one month they’ve taken a very nice recently cleaned up place and made it in to a mess. Dogs, cats, reptiles and their shit all over the tile floor. It is 2 bedrooms, and they have 2 kids plus someone seemed to be staying with them when we inspected?  And they managed to put a hole in one of the doors...

The siding is in need of repair.  1/3 has been replacef with hardi plank.  At least 1/3 needs some serious patching of the current wood so that water and bugs can’t get in.  I’d like to replace it, but I don’t think I can afford that now. Has no attic ventilation, roof was recently put on, but they didn’t put a rolled roof, so we’ll need to add the ventilation so that the roof makes it hopefully 5 years.  

 

first question - as long as they are paying the rent, do you care about the shitty tenants?  Would this scare you away?  The money is what I consider very good as long as both are paying  ($600 a month in cash after paying bills).  My realtor, who I do trust and who manages quite a few properties, said stuff like that doesn’t bother him as long as they pay.  This is our first rental though  

second question, and this is a morals thing - for any of you doing this, have you or would you ever call cps?  Again, 2 small kids and literal shit all over the floor. Dad and whoever was staying with them passed out in the 2 bedrooms after 1 while we were doing inspection. Trash and food everywhere. Just didn’t seem healthy.  I’ve lived in some bad conditions, but it wasn’t for lack of trying. This just seemed... I don’t know. Hard to describe, and I felt terrible for the 2 little ones. 

Did you call CPS? Whatever came of all of this 

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2 hours ago, UTPhil2006 said:

Did you call CPS? Whatever came of all of this 

Wife convinced me no to, and she’s a good judge of these things in my mind. She said yes the place looked bad, but the kids looked well fed, appeared to be talking well, and appeared to be loved in the interactions she saw. Kids didn’t have bruises. She’s seen nicer looking cps homes where the kids appeared to be worse off (hopefully that makes sense without the long cat it would take to describe). 

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Ended the 10 year week at 2.95 (still a solid number considering the past month) with the Fed Policy Announcement and Euro Central Bank announcement coming next week

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Have been watching the Austin home market and I see an unusually high number of fee simple houses in condo regimes. I know that developers do that a lot to get around minimum lot size zoning laws, but are there other reasons why they do that? Are buyers of those properties somehow taking on a less valuable asset or potential problems down the line? It is my understanding that they own the land as a group but it is undivided for each house. Thus the owner of one of these houses doesn’t technically own the land underneath them, but an interest in all the land of the development.

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On 6/8/2018 at 12:09 PM, UTPhil2006 said:

Gotcha, makes sense.  And these people are tenants in the house you are buying?  Or in another unit?

In the house we are buying. 

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12 hours ago, UTPhil2006 said:

How long is the lease? I would be ushering them out as fast as possible. 

That is the plan, unfortunately they just re-signed 12 month lease at the beginning of April. 

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On 6/10/2018 at 8:28 PM, UT_OB1 said:

That is the plan, unfortunately they just re-signed 12 month lease at the beginning of April. 

Ouch.

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On 6/10/2018 at 8:28 PM, UT_OB1 said:

That is the plan, unfortunately they just re-signed 12 month lease at the beginning of April. 

It's possible to buy them out early depending on how much you want to spend

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May sound like a stupid question- is it best to have a completely separate bank account and credit card to help track expenses?  Does it make sense to open something like a chase business account?  

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