Learn from mistakes - tips and suggestions # 3

Learn from mistakes - tips and suggestions

Learn from mistakes - tips and suggestions # 3

 

Today I am going to talk to you about a mortgage I took on the properties and a story that lasted 3 months of seven generations from hell to the promised paradise of real estate, Lior I had to… 🙂
There was a lot of talk in the forum about financing and various ways including mortgages. So yes it is rare for foreigners but definitely exists.
Ido expanded on financing methods here and also spoke here by Shai Halevi, Eran Linker, Yair Yongji and other friends about financing methods and brokers who give mortgages so the purpose of the post is not to market the broker I have no interest in but to present the issue as I experienced That you know why you are entering the mortgage process as foreigners. It's going to be long but with a happy ending.

For years I searched until I happened to arrive last summer through someone who knows someone who is a broker who specializes in foreigners.
Companies that specialize in foreigners, unlike the Americans with Credit Review, check your repayment ability such as pay slips, bank statements and letters of recommendation, leases, tax reports, customer statement and anything that proves that you are refundable as foreigners do not have credit review.
So some emphases from what I shaved and the seven sections of hell:
Minimum loan $ 150 in refinances and 65% -70 of the value of the property.
Fill out forms in front of the broker just like an American and begin to progress with tests that the broker does for you.
In my case 3 properties valued at 205-209 each I received 65-70% of each when the company's condition to meet a minimum of 150a was at least 2 loans. Since a ratio of 2 mortgaged properties in favor of one more free felt unfair to me I decided to mortgage 3 and buy 2 more properties. It turned out that one property was purchased without equity and the other with not high equity. So this is the happy bottom line at the end but on the way 7 rounds of hell…
The interest rate closed 6.5% in a 30-year mortgage while another 5 years the interest rate varies by index. The idea would be to make another refinance in 5 years just as listed in the investor books…
After sending documents to a broker who checks you and gives you a mortgage offer after you receive it, you start to move forward, while the broker is issuing a letter of approval in principle.
We close the mortgage with Teitel and receive a revalued closing date.

An important tip
Let the broker choose the title which will save you heartache later on. I chose Tommy to work with a certain title and it turned out in retrospect to be a mistake. Out of initial apprehension about the pristine process I decided on a familiar and well-known title that had helped me with the issue in the past and given me good service. From here began even sometimes personal problems between the title wife and the broker “who did not get along well with each other” which created frictions and mutual accusations which led to the extension of the closing process.
That you get a quote it is important to immediately request an interest rate lock as the interest rate can vary. In my case, I agreed with the broker at 6.25 and at the close, Mr. Powell (the governor of the Fed) wanted to raise the interest rate in the United States, and as a result, I also suffered. Remember I recorded a title-title relationship so important so that's another reason. Due to bureaucratic delays, the closure was delayed from 25/9 to the beginning of October, which will come out exactly at the time of raising the interest rate. At this point you are so angry and exhausted from the process that you just want it to end and you will already get the money no matter what.
In the meantime, based on a promise and the letter of approval in principle, about a week before the promised closure, you are already closing on a home for purchase and suddenly the mortgage is being bureaucratically monitored again.
We have completed all the bureaucracy and we get good documents for signing 120 page per mortgage but what about signing documents?
You are asked in advance to set a date at the US Embassy for a notary, a date you will still have to move and try again until you have documents in hand that I received right at the 90th minute the next Friday morning I have an appointment at the embassy and need to print over 350 documents at home.
At any notary verification at the embassy, ​​consider parting with $ 50 on each stamp ($ 1650 in total). After several attempts to make appointments between Jerusalem and Tel Aviv, I made an appointment in Jerusalem (and thanks to Trump, Jared and Ivanka ...) I highly recommend going to the embassy in Jerusalem even if the Tel Aviv branch (that's what it's called today…) really In your hands, since the notary's availability is higher in Bim, in addition, the embassy there is pleasant.
So the documents were signed at a good hour. On Friday afternoon, they send back at Courier (DHL is highly recommended and not expensive) and Monday is already back at Teitel
So this is there money? You really will not find that you did not type correctly in the correct field and that the signature is not exactly the same and apply again to a notary (this time settle for a regular notary) and you checked that your signature in field A is equal to field B and the Israeli notary will not understand why And this was swallowed up last time from the last generation… By the way in a mortgage for some reason you are asked to sign your name and not an orthographic signature as always.
We passed all the sections and the money was sent to the country and now you feel that you have left slavery for freedom at least in terms of purchasing the assets. Suddenly a tycoon feels a day coming with a full cash and accepts every offer he makes. At the end of that month, I was already the owner of two more new properties for his protopolis.

An important tip
For those who do not tolerate this bureaucracy do not submit an offer for the property until you do not have the cash in the account or a maximum of one week from a final closing.
I forgot to talk about the closing costs 21 a dollar on 380 a it does not come on foot although embodied in the price but you become indifferent to any expense already like an appraiser, notary etc and just think about the next real estate deal.
Future thoughts - Once the two properties are leased to breathe a lot of air and do again and move on to the next deal perhaps as a focus for Multi or something in style. Ideas are welcome.
Someone once told me that there was a method called BRRR that I did not know about until I actually populated it.

All the best friends I was happy to introduce and share knowledge.
Again, stressing again That everything that is shared here in the forum in general and in this weekly corner in particular is my opinion and personally I am not an entrepreneur in the sense of a business and have no financial interest or advice on my behalf or from my workplace to recommend, market and advise anything.

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Responses

  1. Can you detail the closing costs of a thousand 21? That sounds a lot! What are the direct costs of closing, or is it the amount that was cleared for you what 380 a thousand?
    If this is the amount you have been cleared from the total, there is a high chance that at the end of the year you will receive a large check, because they keep the property tax and insurance of the first year with them and at the end of the year release it. There are also lenders who take you straight down the first 3 months of payments…
    21 A thousand just sounds a lot to me. I spent close to 150 a thousand and closing was less than three thousand! I did some shopping among the Teitel companies. Chicago Teitel was the cheapest.

  2. A proposal to solve the issue of the numerous and expensive signatures at the embassy and the piles of pages that need to be stamped and carried around the world. That I have implemented.
    If you have a broker (for example, a management company) with whom you are in good and secure relationships, you can ask to appoint him as a power of autorny, and so you at the embassy will sign only once for his appointment and all the other signatures he will do for you locally.
    good luck!