New Deal - Renewed Faith in REI

go to chase.com and look for loan officers in your area type in the zip code for whatever area you live in and find the region manager for the brokers and ask for the one who is sending them the most deals and im sure that is the one that can help you in your local area hope this helps and good luck

Great job. It is so funny about the "only having 4 mortgages thing". I remember the first time I heard of that silly rule. The cool thing now is that I have 10 times that number of mortgages! That rule sucks that is why i don't abide by it.

Sounds like a great deal! You're positioned well and I look forward to reading more deals you line up!

PS - I edited the topic title a bit to move it to the homepage, hope you don't mind.

Thanks for sharing and way to watch those REOs!
I ran into the same thing for personal mortgages. We got cut off after the 5th (6th?) and sent to the business banker with the loan officer's blessing. Like CBR said, there's always a way for a stubborn REI. lol With the new LLC, we've purchased one property. When I get another locked up we can move on from there. But now there are other connections as well (new mortgage broker and private investors), so it will be interesting to see how one can make it work.

I'm glad you've joined the DG family. It will be awesome to follow along and hear your experiences and your personal "take" on REI. Keep us posted on the property. (Thanks for including the history. Cool.)

Rina

P.S. Love the Dean story, too. Inspiring, isn't he?

I really appreciate the comments!

DGadmin-You're title is MUCH BETTER. I should take the time to proof and make things easier to read but I just get too excited.

CBR and Rina like your advice and you're right. I'll just keep going and asking until I get what I want..I've been called stubborn before so why stop now. Heck..I'd want to lend to me.. Rina, I also just sent in paperwork to form a LLC and plan to put this one it but I'll have to figure that out. I don't know if I will be able to do that at closing since the purchase contract is in my name or if I will just quit claim it later. Are you leaving the other properties in your name? CBR suggested I call the bank and tell them I want to move them into the LLC but I am a little afraid to tip them off that I don't live in them anymore. I don't want to risk the loans called.

One more thought for anyone who has been afraid to jump in thus far. The price I negotiated on this REO is only 3K higher than the price I paid for my first house 12 years ago (which is the one I mentioned I rent for $975). That is AMAZING. 12 year ago prices and present day rent.

thanks for the chase idea..I will try that. Are you a mortgage broker?

Hey, we are in the same state! Another Ohioan. GO BUCKS!

you said "I did get approved for owner occupied"

how did you get that? I assume you already have a Primary residence.

Also, has anyone done a quit claim to their LLC and have had the loan called? What did you do if it was called??????

If you don't know for certain what you will do with the property (flip, wholesale, use as a second home), unless you specifically say you're buying it as a rental, you can say owner-occupied (not necessarily primary residence). This is what has been implied to me, and how loan officers (and realtors/title companies) view it and fill out paperwork. THEN, at some point, if you decide to use it as a rental, you just comply with local licensing laws.

so I can technically say I plan to move into any new house I am purchasing and was pre-approved (Countrywide) for a loan to purchase this. (I am living in a home that was vacant to help sell it.)

However, she made a point to tell me THEY ARE VERIFYING OWNER OCCUPANCY because of the market. Now, how they are doing that..I don't know and I didn't want to move into this house so I found an alternative way to buy it (funding from the person who got me into this business 7 years ago..except she has to get a loan which will be no problem its just nothing seems to happen quickly right now) and since I offered cash to get the best deal since a loan will not be involved in the closing, today I am trying to scramble a Proof of FUNDS.

As Rina said about, unless you actually said it was an investment property, was sort of a don't ask/don't tell thing and owner occupancy was the assumption but it seems the banks are cracking down some...??

I'll add to your question as I would love to know the answer to about has anyone had a loan called?

Has anyone experienced a verification of occupancy? THANKS !

Maybe they will verify by calling the utility company to see if the lights/water etc... has been turned on in your name? They may even do an actual walk through. I hope all goes well for you.

BUT this is sort of a funny or maybe ironic thing.

I ran an ad to rent the above place out as we are supposed to close by the 31t and it shouldn't take me too long to get ready to turn over. I want to line up a tenant so I ran ad (for $995) and am getting calls but missed one of them yesterday. The number looked so familiar and I am trying to figure out why..I just kept looking at it instead of doing what I normally do which is call right back. All of the sudden it dawns on me, it is my "challenging tenant" I referred to in the beginning. At first, I forget that I had an ad in (early memory loss or something) and think sh--..what the heck is he calling me for, has he come up with some silly lawsuit 8 months later as we never really ended it right. I then put it all together. He must be getting evicted and is back looking again. Sad but glad it's not my issue right now. I never had the chance to give a reference as nobody called me but this made me think. What would I have said?

I am curious to know how other landlords handle bad tenants. Are you honest with your references or are you afraid of the consequences of telling the truth? It would be a disservice to another landlord to not tell the truth. I'll be the one checking again soon.

That is so weird. I never thought about it until I read your post. In as long as I've had rentals, I've never had a call from another landlord asking about one of my former tenants. I ALWAYS call references. Apparently not everyone does. Of course a lot of my familes move right into BUYING a house, but still. hmm... and funny thing is, there's only one that I would have had to "divulge" bad information on.

Another thing, have you found that the references you call are all to willing to give information to a complete stranger over the phone? I've found only about 5% ask for permission in writing from the applicant.

Rina

I have only talked to two other landlords as with the other ones:

1. The tenants told me everything and I verified some of it. I had a really good feeling with these applicants.

I had one gentleman talk rather freely on the phone as it was mostly good and another who was very reluctant to say anything except they were nice people but..then he stopped and would not divulge anything else. (I know why..they are continoulsy late. These are the tenants I asked for 2 months deposit as I was not concerned how they would keep it but did have some concerns that they may fall behind).

I have only had to give one reference to somoene who moved on to purchase a home which I happily did.

With my one bad tenant, I had a bad feeling when I was signing the contract and rushed into renting it. Overall, it didn't turn out that bad it was just a constant battle to get timely payments and they left it terribly filthy. It could have been much worse though and they still paid my mortgage down quite a bit so OH WELL!

I'm getting some rather good leads though for this one which is very encouraging as I had heard that people were getting less for rent. That doesn't seem to be the case on this one. Yeah!

Kate

I closed on the 30th and have been doing some work over there everyday. The first couple lookers did not work out but I am confident I will have it rented for next month. The place was soo flipping smoke filled..it was REALLY unbelievable but other than the darn smoke..it was really in nice shape and I have had some pleasant surprises as well.

Even better however, I have been working on another deal that is life changing (not dollar wise but more importantly "living"-wise) that I will share after we fly to Ft Myers to see it tomorrow. I am soooo excited and it is kind of an interesting story!

Happy New Year! I have a feeling 2009 is going to be an awesome year!