FHA Down Payment

the author of this article is an 'active loan officer', so he definitely puts an 'action urgency' spin on the story

By Q2 2010, the FHA was insuring nearly 38% of all new mortgages and it's easy to understand why.

Now the FHA is in the red. This is not a normal cyclical real estate market driven by fundamentals. Hedge funds are buying in bulk, supply is artificially constricted, mortgage rates are at unprecedented lows, employment and wages aren't rising. There is too much govt interference in the market place. This market can turn on a dime, depending on the success or failure of various policies the govt implements. This is far from a healthy cyclical housing recovery. There is no free lunch. We are going to have to revert to the mean eventually. Whether it's sooner or later is anyone's guess. Just my opinion and I may be wrong.

It's not for investors - just for owner occupants of single family residences, but if someone buys a HUD owned foreclosure with an FHA loan, they can actually get a $100 down payment, and HUD will pay for some repairs to the house in some situations.

I just made a $12,500 fee today at a closing, came home and got a motivated seller's house under contract for $140,000, assigned the contract for another $12,500 fee. Less than 2 1/2 total hours into it!! I was busy doing deals, not reading "oh no, what if stuff." Did two earlier this month for a $4500 fee. The months not over yet!! NO MONEY OUT OF POCKET!!! Net in 2013 = $29,500 so far.
Denver has less than 10 weeks inventory and supply and demand is in full effect, yet I'm KILLING it!
If the bottom falls out again, we'll be there, if the upswing continues, we'll be there.

Go make some offers guys!!

Michael Mangham
Mentoring, Team Building Nationwide
MD Home Acquisitions LLC

What's up with the mobile home park, Michael? Ever find a buyer?

I took it down myself! Got a Private Money Equity partner. We are doing our due diligence as we speak. We will fly down there in 3 or 4 weeks. If the pro forma numbers prove accurate it is a done deal. The bank assures us the numbers are real. We will see.
Anyway, our plan is to cash flow the property for five years and then sell it for $5,000,000 or more. I gave up my $700,000 fee for 40% of the yearly net cash flow and 25% of the net at the time of sales! (We are buying at 1.9 million.)
For me that is $230,000 a year for 5 years and then $800,000 plus in five years.
AND a place to dock my boat and park the RV in FLORIDA for free!
WE will see, I am not counting on anything until I am walking away from the closing table.

More to come!
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Sweet! Is your partner putting up the 20% down or the $1.9 in cash?

He is putting the 20% down and borrowing the balance from his bank, 5 year balloon. We may be putting around $150,000 into the place over the next year or so. We will see when we fly down and look it over in person.
Anyway, my partner is good for the money at any time. He purchased 8 of my properties in the last 12 months. He has about $20,000,000 available give or take a few million depending on how many projects he has going.

It is not over till it is over!! Our CPA is doing the financial due diligence. In the mean time I am making and will continue to make offers. My hopes are high but I am keeping them in check. We all know how this business is. Count it done after closing!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC