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UTPhil2006

All Encompassing Mortgage and Real Estate Thread

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17 hours ago, UT_OB1 said:

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?  

Probably pretty smart from an accounting perspective.

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Yeah, and you can open a business account at Lowes and get 5% off everyday plus delivery for 25 bucks.  Great for a landlord.  

Are you purchasing in your own name?   An LLC might be a good idea. 

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11 minutes ago, Gil Bang said:

Yeah, and you can open a business account at Lowes and get 5% off everyday plus delivery for 25 bucks.  Great for a landlord.  

Are you purchasing in your own name?   An LLC might be a good idea. 

It will be in our name.  What advantages does an LLC provide?  Is that something we can start at a later date?  The seller is painfully slow signing paperwork, but we'll be completing the purchase soon.  

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(not a lawyer) The LLC is a single-asset entity and gives you the protections of a corporation.  Say that your house has some electrical defect, burns, and kills everybody in the house.  If you own the home as an individual, they can go after everything you own.  If you own the home in a LLC, they can only go after the assets of the LLC.  

There are disadvantages, such as the cost of forming and operating the LLC.  

You really should consult with a good R.E. attorney in your town, and speak to your CPA too. 

 

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Holy shit I feel like such a noob. But we’re doing this slow and one house at a time to learn what it is we don’t know. Hopefully I don’t have a panic attack or destroy my liver on the journey  

For any landlords out there, how do you recommend receiving payment?  I hate physical checks.  PayPal personal/family transfer seems easy to avoid fees seems easy. Are there any drawbacks with that?  I 

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On 5/10/2018 at 1:58 AM, Modessit said:

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.

 

 

 

 

We got this email in regards to VA loans from one of our primary lenders today..

Our VA loans offer:

  • No down payment
  • Low interest rates
  • Fast closings — typically in 30 days or less
  • Elite pricing for 640+ FICO

Plus, we’ll lend your client 100% of their new home’s purchase price, with no MI required. Give your veteran borrowers the service they deserve

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Hello

How wise would you think it’ll be to do an extended rate rock for 270 days at a .25 rate increase with Wells Fargo? today it’s 4.625% with no points.

So If they add .25% to that 4.625% rate the extended lock fee would be $500

They offer a one Time buy down with no fee so if rates drop by the time we close, they reduce it down to that rate.

Thanks!

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A friend of mine bought an 18th century house  with attached barn near Chaillac, France several years ago. Stone walls are 2' thick, but he built a new 2 floor framed house inside the old one (on the left). Now he's building a larger one inside the barn (right) that will also be two floors plus a loft on the 3rd. Dude is using some pretty big oak timbers for the frame & flooring and cinder block for the interior walls. 

 We were supposed to stay in the new barn house when visiting next month, but it looks like we'll be in a local B&B instead. Just the 1st ground floor has been framed in and this load is the material to start framing the 2nd level. Of course he had to replace the 250 year old roof on both sides:

file.php?id=1639&mode=view

file.php?id=1638&mode=view

Edited by Armybrat

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On 6/15/2018 at 4:02 PM, Stunns38 said:

Hello

How wise would you think it’ll be to do an extended rate rock for 270 days at a .25 rate increase with Wells Fargo? today it’s 4.625% with no points.

So If they add .25% to that 4.625% rate the extended lock fee would be $500

They offer a one Time buy down with no fee so if rates drop by the time we close, they reduce it down to that rate.

Thanks!
 

Just to answer on the thread as well - I don't like the up front fee of $500 and no one knows where the market will be in 9 months.  I think I would drag it out as long as you could (at least 180 days or less) as long as the market stays relatively in the same area.  You've got $500 and .25 to work with of going up before it becomes break even so you've got time to watch it.

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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

Down another 10 points or so to around 2.87... hopefully staying low or around this low through summer buying season

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On 6/14/2018 at 10:57 PM, UT_OB1 said:

Holy shit I feel like such a noob. But we’re doing this slow and one house at a time to learn what it is we don’t know. Hopefully I don’t have a panic attack or destroy my liver on the journey  

For any landlords out there, how do you recommend receiving payment?  I hate physical checks.  PayPal personal/family transfer seems easy to avoid fees seems easy. Are there any drawbacks with that?  I 

With the sketchy people I would say do a check so there is a solid paper trail.  As you become more familiar with certain tenants you can switch to my personal forms of payment.

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Have any of you tried rehabbing any flooded properties?  There are so many of them after Harvey. Lots of places with 3-6’ of drywall cut out. 

 

For those that have, besides the drywall and floors, what else do you run in to?

 

And Phil - thanks for the advice. 

Edited by UT_OB1

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On 6/19/2018 at 9:57 AM, UTPhil2006 said:

Down another 10 points or so to around 2.87... hopefully staying low or around this low through summer buying season

Couple days up, couple days back below where it started to 2.84.  Gladly will take the 1 step forward 2 steps back approach

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So we have been looking to buy in a certain neighborhood (currently own a home elsewhere) and we found a home that is in the early stages of being gutted and completely re-done. We have engaged the developer and they are interested in us being the buyer and customizing to our liking. 

How on earth would that work? What is the "typical" process there? I'm worried if we agree on a price and sign a contract now then all the incentive to do a good job is gone for the developer. Can you build in an "option" period for something like this to where after they finish we can see the house and back out for a fee? 

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My suggestion would be a real estate attorney to draw up something for you that gives you certain outs should it not meet your criteria.  But if you/they're treating it like a custom build then theoretically it would go like any other custom build in which there would be draws/checklists to be hit, etc.

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On 6/27/2018 at 11:15 AM, UTPhil2006 said:

Couple days up, couple days back below where it started to 2.84.  Gladly will take the 1 step forward 2 steps back approach

Still holding tight at 2.84 going into the holiday.  Definitely a welcome reprieve from the above 3.00 we sat at early summer.

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1 hour ago, Hefeweizen said:

I already have one I can't afford. Thanks!

Ha! Time to Buy a lake and/or Beach House now.  Seems to be the it thing to do this summer 

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Just a bit of a rant here about the utter nonchalance and lack of urgency in the retail and professional services business in europe.

I want to buy a house from my colleague-friend.  He owns it outright with no liens.  Seller-to-buyer, no agents employed.

I have financing all set and ready.  We have move-in date all agreed and free. 

Standard procedure is to get a notary to register the sale/deed with the county; register with tax authority (to collect property tax); and create escrow account to broker the sale (not really since needed in this case since its not a deal between strangers).  The notary collects a 1.5% fee for this.  

***

Another colleague literally just bought a place this month.  His notary/lawyer executed the contract overnight because it's literally a copy-and-paste job of standard forms with a new buyer/seller names on it.  

***

My bank referred me to a certain notary firm because "they do lots of deals in English so all of our international/UN clients are very satisfied with them".

I contacted them and we had a few back and forth emails and then they just went on radio silence.  My office is 5 minutes from theirs and they never bothered to ask for a sit-down.  

The aforementioned colleague said to use his notary instead, and I emailed them "we're ready to buy, we have the date, we have the funds, we have full agreement, just need to execute the sale"... 2 business days and 0 reply.  

***

It's maybe 10 minutes of paperwork and sending 1 assistant to the courthouse in order to collect a 5-figure fee.... and these guys just dont seem to give a fuck.  I don't know if its just laziness or xenophobia or what but between us at the office, we have countless stories of examples just like this.  Like a few months back, I saw a car I wanted listed on 5 dealer websites as being in-stock... i emailed a short "i'd like to buy this specific car, in cash, can you give me the cash price".  1 dealer responded.  It's pretty much free money and seems like nobody in this country wants to take it.  

 

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9 minutes ago, Dbeasy said:

That’s a lot of words just to humble brag about your European castle.

I guarantee 2/2 apartments in Texas have more sq-footage than this place

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9 hours ago, 52-80 said:

Just a bit of a rant here about the utter nonchalance and lack of urgency in the retail and professional services business in europe.

I want to buy a house from my colleague-friend.  He owns it outright with no liens.  Seller-to-buyer, no agents employed.

I have financing all set and ready.  We have move-in date all agreed and free. 

Standard procedure is to get a notary to register the sale/deed with the county; register with tax authority (to collect property tax); and create escrow account to broker the sale (not really since needed in this case since its not a deal between strangers).  The notary collects a 1.5% fee for this.  

***

Another colleague literally just bought a place this month.  His notary/lawyer executed the contract overnight because it's literally a copy-and-paste job of standard forms with a new buyer/seller names on it.  

***

My bank referred me to a certain notary firm because "they do lots of deals in English so all of our international/UN clients are very satisfied with them".

I contacted them and we had a few back and forth emails and then they just went on radio silence.  My office is 5 minutes from theirs and they never bothered to ask for a sit-down.  

The aforementioned colleague said to use his notary instead, and I emailed them "we're ready to buy, we have the date, we have the funds, we have full agreement, just need to execute the sale"... 2 business days and 0 reply.  

***

It's maybe 10 minutes of paperwork and sending 1 assistant to the courthouse in order to collect a 5-figure fee.... and these guys just dont seem to give a fuck.  I don't know if its just laziness or xenophobia or what but between us at the office, we have countless stories of examples just like this.  Like a few months back, I saw a car I wanted listed on 5 dealer websites as being in-stock... i emailed a short "i'd like to buy this specific car, in cash, can you give me the cash price".  1 dealer responded.  It's pretty much free money and seems like nobody in this country wants to take it.  

 

Laziness (in this or any industry) no longer surprises me.  You'd be surprised how lazy (and rude) some people can be.

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Whats the story on buying a vacation home, from a relative, to primarily rent  to others?  Would a mortgage company consider the potential rental income in determining my mortgage eligibility?   

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2 minutes ago, Nice Guy Eddie said:

Whats the story on buying a vacation home, from a relative, to primarily rent  to others?  Would a mortgage company consider the potential rental income in determining my mortgage eligibility?   

As far as the mortgage side of things, they would not consider the potential rental income for your DTI (debt to income ratio).  As far as the down payment, since it would be an investment property and not a second home you would be looking at 20% down.

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11 minutes ago, UTPhil2006 said:

As far as the mortgage side of things, they would not consider the potential rental income for your DTI (debt to income ratio).  As far as the down payment, since it would be an investment property and not a second home you would be looking at 20% down.

Now, there are such things as gift equity and such if you are buying from a relative.. I can get into that further with you if you'd like (PM sent)

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On 7/7/2018 at 9:42 PM, MNLonghornFUKM said:

just listed my home FSBO style. Im f5'ing the hell out of my zillow to look at views & saves. lulz.

 

who wants to move to Minnesota?!

What else did you list it on?

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2 hours ago, UTPhil2006 said:

What else did you list it on?

zillow. got a showing tonight for 2 people w/a realtor...pretty sure after tonight Ill pay for  Flex MLS/Reatlor.com  if nothing transpires 

Edited by MNLonghornFUKM

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On 7/7/2018 at 7:42 PM, MNLonghornFUKM said:

just listed my home FSBO style. Im f5'ing the hell out of my zillow to look at views & saves. lulz.

 

who wants to move to Minnesota?!

What the fuck is wrong with you man?  Selling yourself when you have an all-star agent in your area who also happens to like lattes and takes his car to the dealer to get air in his tires?

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What the fuck is wrong with you man?  Selling yourself when you have an all-star agent in your area who also happens to like lattes and takes his car to the dealer to get air in his tires?
What the hell are you talking about

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Anyone got ant recs on a realtor in Houston that deals with people looking for properties that need a little work before renting out? We used the same realtor for our first rental that we used for our last residence. He’s a nice guy, but he’s not doing the leg work I need/want looking for good properties. 

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3 minutes ago, UT_OB1 said:

Anyone got ant recs on a realtor in Houston that deals with people looking for properties that need a little work before renting out? We used the same realtor for our first rental that we used for our last residence. He’s a nice guy, but he’s not doing the leg work I need/want looking for good properties. 

Fire his ass.  Get somebody hungry.


I hate lazy agents. 

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1 minute ago, Gil Bang said:

Fire his ass.  Get somebody hungry.


I hate lazy agents. 

Yeah, we won’t be using him on the next rental. Just don’t know who to go with. The very first realtor we had years ago when we bought our first residential house was terrible. I almost feel like I don’t need one. 

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Ok so my first open house is tomorrow. I'm gonna put together a flyer with info about it and a few pics.

I have no idea how many agents or people will show up. Any pro tips if I'm suddenly swarmed by like 3 or 4 offers? I know Phil said make a deadline in a PM...but dont commit to anything obviously.

Anything else?

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21 hours ago, 3adays said:

Anyone seeing any softening in the Austin market? 

Depends on what part of the city but on the whole not really. 

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