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ch3cooh posted:We're trying to raise $55,000,000 while the acquisition and capital program only requires $45,000,000 so we'll have a good amount of working capital. Would lenders be hesitant even with this amount of cash on hand? It's a pretty good rule of thumb in life that $10mm in the bank changes everything. But in that case why not just buy it outright and not have to deal with financing.
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Mar 11, 2013 07:45
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I did vinyl on my 1500 sq foot home, plus aluminum capping and a new roof for $10k in the DC area.
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Mar 12, 2013 00:45
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dreesemonkey posted:Anyone from the Columbus, OH area? My friend moved there recently and was thinking of buying a home. I went through the typical warnings this thread gives out but then I saw how loving depressed that market is. He could buy a ranch home duplex with garages for like $60k - it's freaking nuts! I'm a little late to the party but my wife and I have been shopping for a home in Columbus area (more specifically, Westerville and New Albany area) for the past month. I don't know where your friend is finding those places at, but they can't be in good neighborhoods or the houses are pretty crappy. In the area we've been looking at, for a 1800 sq-ft place with 3-4 bedrooms and 2.5 baths, you're looking at least 150K-200K. We've not had a whole lot of luck in our search. We've been through 13 different places with our Realtor now. We've made two offers on different places and got outbid both times. The latest time we lost out because we got screwed over by the seller's Realtor. We went and saw this place on Friday and really liked it. We liked it so much that we called up my parents who've been in the home construction business for 35+ years and had them drive an hour and a half to Columbus on Saturday to look at it too. We put in a really strong offer on Saturday after it got my dad's approval. Then on Sunday, we found out the seller's Realtor neglected to tell our Realtor that there was already low-balled offer already on the house before we looked at it on Friday. Ours came in higher than theirs but then they countered and the sellers ended up taking it. From what I can tell, the other buyers were also clients of the seller's Realtor and she pretty much played us to get a higher offer out of them. My Realtor and I are pretty much furious but there's not a whole lot we can do about it and now it's back to waiting for more places to come on the market.
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Mar 12, 2013 00:49
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Maybe it's because I've been raised to believe that banks have standards, but I'm kind of curious as to what the likelihood is that I can get a decent loan for one of the modest condos that I've been looking at. I have around $12,000 in cash that I can comfortably put toward a down payment on a property in my area (possible price range from 28k-60k). That amount can be raised to around $20,000 over the next few months. During this time, I can also reduce my revolving credit card debt from around $6,000 to around $2,000, and I have no other debt to speak of. My credit score has been hovering above 780 for years and I currently make just above $60,000 a year. From what I understand, the more, the better at the time of applying. So are factors like the above taken into consideration when getting a loan, or am I kind of loving myself if I just apply now with the amount of cash on hand that I'm willing to throw at this? If it's not shockingly obvious already, I'm really ignorant about this stuff in general.
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Mar 12, 2013 07:09
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ButteryNoodles posted:Maybe it's because I've been raised to believe that banks have standards, but I'm kind of curious as to what the likelihood is that I can get a decent loan for one of the modest condos that I've been looking at. If you're looking at a condo for less than your annual salary, that should be a slam dunk. I have eerily similar stats (although substantially more cash on hand and closer to 2K revolving debt, most of which was transactor behavior) and recently got a loan at 5% down for a condo worth 3x my annual salary.
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Mar 12, 2013 07:34
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ButteryNoodles posted:Maybe it's because I've been raised to believe that banks have standards, but I'm kind of curious as to what the likelihood is that I can get a decent loan for one of the modest condos that I've been looking at. The more what, the better? You have a fantastic credit score, your debt ratios sound incredibly low, and you have a good down payment it sounds like. Short of your appraisal being jacked or the title work having something screwy there's not really anything of concern in your scenario. The outstanding balance of your credit cards is basically irrelevant, we care about your minimum payments (for debt ratios) and your payment history.
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Mar 12, 2013 07:40
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Captain Windex posted:The more what, the better? You have a fantastic credit score, your debt ratios sound incredibly low, and you have a good down payment it sounds like. Short of your appraisal being jacked or the title work having something screwy there's not really anything of concern in your scenario. The outstanding balance of your credit cards is basically irrelevant, we care about your minimum payments (for debt ratios) and your payment history. Thweet. Like I said, I'm an ignorant bastard. Thanks!
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Mar 12, 2013 07:43
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ButteryNoodles posted:Maybe it's because I've been raised to believe that banks have standards, but I'm kind of curious as to what the likelihood is that I can get a decent loan for one of the modest condos that I've been looking at. Given the price range and your salary(as well as DTI and credit score estimate), I'd buy a house closer to the high end of that range to get the best possible place you can. Give a 48000 mortgage(you put that 12k down on the 60k note hence the 48k) on a 30 year loan, you'll be paying 221$ a month for a mortgage. To say that's "stupid cheap" is an understatement. I think I spend more on gas a month.
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Mar 12, 2013 14:26
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lord1234 posted:Given the price range and your salary(as well as DTI and credit score estimate), I'd buy a house closer to the high end of that range to get the best possible place you can. Give a 48000 mortgage(you put that 12k down on the 60k note hence the 48k) on a 30 year loan, you'll be paying 221$ a month for a mortgage. To say that's "stupid cheap" is an understatement. I think I spend more on gas a month. I think it would be just plain stupid to go with a 30-year loan on that small of an amount. See if a 5-year or 10-year note is doable for you, and save thousands on interest over the life of the loan.
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Mar 12, 2013 16:56
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Nocheez posted:I think it would be just plain stupid to go with a 30-year loan on that small of an amount. See if a 5-year or 10-year note is doable for you, and save thousands on interest over the life of the loan. True, but I was just pointing out the ridiculously low payment at a 30 year.
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Mar 12, 2013 16:59
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Imo you might want to up your budget, depending on how long you can see yourself living in a $60k condo while making $60k a year. Personally I would pretty quickly start eying more expensive property if I knew I could afford it easily. You might not. But it is pretty easy to out grow a place, whether in terms of square footage, location, or amenities. And selling and buying can get expensive. Just something to keep in mind.
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Mar 12, 2013 17:52
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Are people really suggesting to spend more on a house just because he makes enough? Shouldn't you spend as little as possible while still getting a place you like? I can't imagine spending more money on a house just because I could, if a cheaper place got me what I wanted.
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Mar 12, 2013 19:35
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slap me silly posted:I have no idea what my sewer line is made of and I am confidently expecting this to happen to me any day now. Three years with no trouble so far! Pay a plumber $50 to run a camera down there and find out! don't do this voodoocat posted:As long as it is maintained, clay can last a long time. In our neighborhood of 70-120 yr old houses, you'd be lucky to find a place that has replaced the clay. Yeah, ours... wasn't. Which, again, run a camera down there before you buy. Can't say it enough.
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Mar 12, 2013 19:46
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ObsidianBeast posted:Are people really suggesting to spend more on a house just because he makes enough? Shouldn't you spend as little as possible while still getting a place you like? I can't imagine spending more money on a house just because I could, if a cheaper place got me what I wanted. I think some people were scared by the housing crash and stories of people buying homes they couldn't afford. Maybe $60k buys a really nice condo in a nice area where butterynoodles lives and thats all he needs to spend. But my guess is that those condos are $60k for a reason and he should make sure he isn't going to want to move up in a couple years. There are plenty of people out there who are happy driving 15 year old cars. But if you're making good money you might decide a newer car is worth it. Now if it costs $5k in agent fees to sell your beat up civic and buy a newer car you might end up wishing you would've bought the newer car to begin with.
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Mar 12, 2013 19:57
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All good advice. Property in general is pretty cheap where I live depending on the area. The $28k condo is a weird anomaly and the association fee is relatively large compared to the units on the higher-end of my price range. Most of the condos in the area I'm looking at are $45-$120k if you want a 1 bed, 1 bath. They're all appealing for very different reasons, but I know what I'm willing to spend and what I want. And, yeah, the housing bubble and the general shittiness of the economy scared the ever loving hell out of me because I know a couple of people who lost their homes. If I were a little older and/or in a different place in my life, I'd probably be looking at a more expensive place or even a house out in the burbs, but it's just not something that works or appeals to me given where I'm at. A 5- or 10-year loan is something I'm definitely eyeing though.
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Mar 12, 2013 21:38
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What are the tax implications of receiving financial assistance from my family to help with a house downpayment?
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Mar 13, 2013 03:16
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Spazzle posted:What are the tax implications of receiving financial assistance from my family to help with a house downpayment? Probably none for either of you. There are never tax implications for receiving money. As far as giving money, you are allowed to give up to $13,000 per year without needing to file a gift return, and anything above that isn't taxed until you hit a lifetime giving exclusion of $5,120,000.
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Mar 13, 2013 03:32
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Zeta Taskforce posted:Probably none for either of you. There are never tax implications for receiving money. As far as giving money, you are allowed to give up to $13,000 per year without needing to file a gift return, and anything above that isn't taxed until you hit a lifetime giving exclusion of $5,120,000. The lender will want a letter from the donor saying that it's a gift.
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Mar 13, 2013 05:56
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gvibes posted:This is my understanding as well. And also a bank statement of the donor to show they had the money in the first place, and a bank statement from you showing you deposited the money, and a copy of the check from them to you.
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Mar 13, 2013 21:54
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Just wanted to say that after 3 months of searching I finally made an offer on a house. Exciting! Two hours later the words I've already heard too many times on my hunt "we've got a full price cash offer" shot me down. Buying a house right now in Austin is going to be really tough. :-( It feels like it's investors snatching up all the homes and I hate it.
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Mar 14, 2013 03:59
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Hella Nervous posted:Thanks for the heads up, all. I need to keep looking for other quotes. I'm not sure where everyone else gets their siding done, but we had three quotes a few years ago for our 1100 sqft house in Ohio, the cheapest one was right around 10k. Our house is old and isn't just a big rectangle so that contributed to the price, reportedly. We had 1 larger regional company and two smaller local places quote it. To be honest, the prices seemed high and maybe if we called a bunch of other people we would have found more reasonable prices, but we kind of just gave it up...our siding is ugly, but functional.
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Mar 14, 2013 13:49
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Lixer posted:Just wanted to say that after 3 months of searching I finally made an offer on a house. Exciting! Two hours later the words I've already heard too many times on my hunt "we've got a full price cash offer" shot me down. Even the investors I am working with can't find houses right now. We've bid 20%+ over list price and still been blown out by other investors.
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Mar 14, 2013 18:14
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I Love You! posted:Even the investors I am working with can't find houses right now. We've bid 20%+ over list price and still been blown out by other investors. Wow, that's crazy. I'm a native Austinite and once I got old enough to think of these things I figured I'd never be able to afford a house here. It wasn't until I really looked at my finances and house prices this past fall that it actually seemed possible. Looks like it may be out of my grasp again until this all (hopefully) settles down. Who knows what Austin will be like then? /Debbie downer
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Mar 14, 2013 20:19
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Lixer posted:Wow, that's crazy. I'm a native Austinite and once I got old enough to think of these things I figured I'd never be able to afford a house here. It wasn't until I really looked at my finances and house prices this past fall that it actually seemed possible. Looks like it may be out of my grasp again until this all (hopefully) settles down. Who knows what Austin will be like then? It is still possible to get houses, it's just tough in certain areas and price ranges. Don't totally despair! I still see solid listings pop up every day. It's just tough if you're looking to BUY UP as all the investors are.
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Mar 15, 2013 01:34
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Captain Windex posted:
Thats like saying the local bike store is going to have better prices on bikes because he has access to the local Walmart and Target. I'm guessing he's a broker. Brokers send their loans to banks. Loans originated by brokers have higher foreclosure rates and are therefore riskier to the investor. Brokers have fewer options today then they did 5 years ago due to major banks (like Wells Fargo) cutting them off. They do not have direct lending ability to gain access to the money offered by Fannie/Freddie/Ginnie. A broker may occasionally be better than a bank in costs but more often than not the reverse is true. What is true is that a broker can offer better service since they typically have fewer responsibilities than a bank originator. Broker = Good service, fewest options, slightly higher rates/costs. Average speed. Corespondent lender = Good rates, medium options, average costs. Fastest. Large bank = Most options, good to medium rates, average cost. Slowest. Thats 13 years of Origination experience with 7 being Broker, 3 being Corespondent lender and 3 being a banker.
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Mar 16, 2013 00:34
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I Love You! posted:Even the investors I am working with can't find houses right now. We've bid 20%+ over list price and still been blown out by other investors. Its a sellers market now in the southeast. Low volume of homes still on market so I'm hearing that story more and more.
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Mar 16, 2013 00:35
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Randomly posted:Its a sellers market now in the southeast. Low volume of homes still on market so I'm hearing that story more and more. Yeah, that's one of the reasons I've been moving more of my time over to our agent matchmaking service. It's so hard to help first-time homebuyers in Austin right now other than "wait and watch the market like a hawk and hope for a good deal" and that's most of whom I work with - but people in other parts of the country still have a lot of options. On that note, thanks to everyone in this thread that has been contacting us about agent matchmaking; we've had a great response and have spoken to a ton of people this last month already. We're working on growing the service now and will probably start running ads with the positive response we've seen on SA this year. Tentative yayyy improving economy and housing market, and thanks to everyone who we've talked to!
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Mar 17, 2013 20:56
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Randomly posted:Its a sellers market now in the southeast. Low volume of homes still on market so I'm hearing that story more and more. It is? Hot drat, time to list!
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Mar 18, 2013 13:48
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Randomly posted:Its a sellers market now in the southeast. Low volume of homes still on market so I'm hearing that story more and more. Same in many parts of northern CA. We bought in wine country late 2011, and any home that wasn't infested with black mold and/or overpriced by 100k would have 5+ offers within 24 hours of being listed. The one we ended up purchasing was one that had been listed for only 4-5 hours, and we submitted our bid within 30 minutes of viewing. There were other bids within 15 minutes of ours. God drat that was a stressful hunt
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Mar 18, 2013 14:08
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Yeah, having the same problem in DC now. Sucks that I'm looking in a neighborhood that's an hour away from where I live now, which makes getting to day-its-listed viewings somewhat tough.
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Mar 18, 2013 14:24
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Baruch Obamawitz posted:Yeah, having the same problem in DC now. Sucks that I'm looking in a neighborhood that's an hour away from where I live now, which makes getting to day-its-listed viewings somewhat tough. We had this same issue when looking in the DC area. We just sacrificed one day each weekend to the hunt and accepted that we were going to miss out on some houses because of that. We got lucky that the place we ended up buying waited until late Sunday to look at all the offers after going on the market the previous Thursday. There were seven offers in all, including one that was 10k higher than ours and waived the inspection contingency. Yay DC metro area! On the bright side, it's still way less insane than NYC or SF.
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Mar 18, 2013 14:49
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Well, after much searching and looking after listing after listing and almost putting in an offer on an inventory new construction, my fiancee and I have decided to build a new home and signed our contract a week ago for a 2056 sq ft, 4 bedroom, 2 bath home in a new emerging community here in Orlando. I'm really anxious and want this whole process to move fast even though we're projected for a September move-in. I can't wait to have a legitimate kitchen to cook in, our cabinets are so crammed now and the appliances are terrible. Much thanks to Have Some Flowers! and his realtor matchmaking service for finding me a great realtor down here. We ended up going with a broker who owns a small agency and I'm not certain I would have found him on my own, but he has been really awesome to work with and is guiding us through the whole process. I can definitely recommend having him help you find a realtor if you don't know anything about the process like I did.
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Mar 19, 2013 00:36
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It is comforting to hear that there are other folks in the DC metro area in the same boat as we are. I was blown away that all of the places we were interested in were under contract within 24 to 96 hours from the time they were listed. We've since started meeting up with our agent late in the evenings if we think it might give us a leg up. This last time, my fiance and I went to view the house within six hours of listing, got an offer with a 10% escalation over the asking price to the listing agent the following morning, and were promptly blown out of the water by an all-cash, no-contingency bid. When we started officially looking at real estate last year, I remarked that at least home shopping had to be less frustrating than car shopping. My realtor must have been laughing his rear end off internally when I said that.
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Mar 19, 2013 21:25
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Chicago is the same way right now. Inventory is incredibly low and decent properties are flying off the market. It makes me really cautious that we're headed right back into another irrational bubble or if lending standards have just loosened up to the point where people who've wanted to buy for a couple years are finally able to. Possibly both.
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Mar 19, 2013 21:55
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10-8 posted:Chicago is the same way right now. Inventory is incredibly low and decent properties are flying off the market. It makes me really cautious that we're headed right back into another irrational bubble or if lending standards have just loosened up to the point where people who've wanted to buy for a couple years are finally able to. Possibly both. I'm thinking it's a normal cyclical action, not yet a bubble by any means, but a very volatile upwards swing. The savvy people who bought in the last two years are sitting pretty, and now everyone with any significant cash and/or credit who's vaguely interested in real estate right now is buying before (they believe) prices will skyrocket and interest rates will rise again. I think we're past a temporary bottom on the way to a temporary high. If you can buy in the very near future, that's great, but otherwise I'm thinking waiting a year or three may see a counter-swing as more and more people buy rental property that can't sustain itself.
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Mar 20, 2013 02:24
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Damnskippy posted:It is comforting to hear that there are other folks in the DC metro area in the same boat as we are. I was blown away that all of the places we were interested in were under contract within 24 to 96 hours from the time they were listed. We've since started meeting up with our agent late in the evenings if we think it might give us a leg up. This last time, my fiance and I went to view the house within six hours of listing, got an offer with a 10% escalation over the asking price to the listing agent the following morning, and were promptly blown out of the water by an all-cash, no-contingency bid. Out of curiosity, where exactly are you looking? I'm looking in Silver Spring/Kensington and coming up pretty empty so far.
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Mar 20, 2013 02:51
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Baruch Obamawitz posted:Out of curiosity, where exactly are you looking? We're primarily looking in the North Arlington area, but we've been keeping an eye peeled for places in our price range in Bethesda too. Most of our hopes are on Arlington providing a place that won't make one or both of us hate our commute. I have to make it out to Reston every morning while she needs a way to commute via public transportation in to DC.
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Mar 20, 2013 21:33
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Baruch Obamawitz posted:Out of curiosity, where exactly are you looking? I'm in the same boat here. We aren't looking until the fall at the earliest but I still check listings once a week to get an idea of what's going on. I'm pretty sure we're going to wind up in Gaithersburg or Germantown. Maybe we'll get lucky and find something in Rockville that feeds into the better schools.
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Mar 20, 2013 21:52
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Damnskippy posted:We're primarily looking in the North Arlington area, but we've been keeping an eye peeled for places in our price range in Bethesda too. Most of our hopes are on Arlington providing a place that won't make one or both of us hate our commute. I have to make it out to Reston every morning while she needs a way to commute via public transportation in to DC. I work from home, which is nice in that we only have to worry about one commute, but lovely in that we need a bigger place for my office. My wife's commuting into DC, and pushing an hour for the commute is already lovely.
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Mar 20, 2013 22:18
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It's a sellers market her in MA as well(or at least in my town). I'm trying to capitalize
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Mar 21, 2013 00:46
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