Understanding Your VA Non-Allowable Fees

Using your VA Loan benefit may seem daunting at first, but it’s important to understand as many aspects of this benefit as possible. One of the great things about the VA Loan is that it minimizes closing costs for the veteran. Non-allowable fees are one of the ways that this is done.

What are the VA Non-Allowable Fees?

The VA Loan Non-Allowable Fees are fees that veteran borrowers cannot pay during the VA loan process. These fees can also be difficult to calculate due to the fluidity of the situation. Items that impact the fees are:

* What state the loan is originated in
* The specific lender’s fee structure
* The VA Loan Amount

VA Fees that cannot be charged by the lender ( when charged the 1% origination fee) are:

* Application fees
* Attorney Fees
* Home inspections ordered by the lender
* Home appraisals required by the lender
* Notary fees
* Real estate agent fees
* Property tax service
* Postage fees
* Mortgage rate lock fees
...

Kevin Brenner, ADPI Hero, Capt, USAF / @investorkev

“If you get up early, work hard, and pay your taxes, you will get ahead-if you strike oil.” - J. Paul Getty

Disclaimer:

I am not a certified tax advisor, nor do I aspire to be one. This blog should not be used or be considered professional tax advice. I highly recommend consulting with a tax professional to obtain specific tax advice tailored to your financial goals and aspirations. The below thoughts are of my own opinion and should not be considered legal advice in any way, shape, or form.

Now that we got that out of the way...

Let’s talk taxes! Yay everyone’s favorite subject! Who doesn’t love forking over your hard-earned cash to the government so they can maybe get around to fixing that pothole that’s single-handedly thrown your car’s alignment out of whack?  

Well, the truth is, taxes are important. Taxes help fund necessary programs and keep local municipalities alive. They...

Buying Real Estate With an LLC

Real estate investors know they should acquire property in an LLC. But why buy in your own name if you’re going to turn around and deed it into an LLC? This raises the question of how to actually buy property in the name of an LLC.

LLCs and Financing

Ultimately, a big component of whether you’ll be able to close directly within an LLC is the financing involved, if any.

If you’re buying with cash, then closing in your LLC will present no issues. If you’re using traditional financing (Freddie/Fannie loan), and if the property itself is residential, then you’ll be required to close in your own name. Buying that property in an LLC is a non-starter. Don’t even attempt to put a deal together in your LLC if you’re using a traditional Freddie/Fannie loan.

This is not the case if you’re using a community lender (not Freddie/Fannie), called a portfolio loan. These types of loans are different from traditional loans...

Buying a Home Warranty

One of the things a real estate agent should discuss with you during your home purchase is the home warranty. A home warranty can potentially alleviate financial strain during homeownership, but is it worth it?

What is a Home Warranty?

Although sometimes mistaken for an insurance policy--a home warranty provides a service contract through selected vendors for replacement or repair of things such as: major appliances, HVAC systems, plumbing, etc. Unlike insurance, home warranties do not cover structural features or damage from a flood, fire, theft, or other natural disasters.

The items covered by home warranties are meant to be in good working condition but may break down because of normal wear and tear. Home warranties can help with larger issues like HVAC repair/replacement or septic issues (note that septic is usually an additional fee and has limited coverage by home warranty companies).

Are Home Warranties Worth It?

Most home warranties can cost from $350...

Asset Management Roles in Multifamily Investing

What is an Asset Manager?

In short, the Asset Manager (AM) is the manager of the Property Manager (PM). From the time the listing is received--to the time the property is sold--, the AM is your boots-on-the-ground for understanding the investment property performance. The AM should live within driving distance of the property. While every deal is different, the AM will most likely be a General Partner in the deal. Including the AM as an equity partner gives them skin-in-the-game and naturally incentivizes them to execute the business plan as efficiently as possible. 

Why is the Asset Manager Role Important?

As the primary point of contact for understanding day to day operations, the AM fuels the communication battle rhythm by providing regular updates to the General Partners. Updates include income, expenses, renovation status, and unexpected events. This information is translated into your income statement and compared to...

Where & How to Get a VA Loan

As a servicemember or veteran, it’s important to have a lender that is an expert in the VA Loan process. The VA Loan process is different than a conventional loan and has different requirements—which is why the VA requires certification of lenders for them to be able to offer VA Loan services. Lucky for you, ADPI’s in-house lending team AmNet excels in offering VA Lending Services to our amazing service members, veterans, and their families!

How to get a VA Loan

Preapproval

To start the VA Loan process, you’ll need to obtain a preapproval. A preapproval is a letter given by the lender stating that you (as a buyer) qualify for the property that you’re trying to purchase This letter gives you a great advantage when making an offer on a home –as it helps show your commitment and purchasing power. Preapproval can also help you when searching for a home. Many real estate agents require a lender preapproval before...

Mythbusting: Investing in Mobile Home Parks

Common Mobile Home Park Misconceptions

One misconception about Mobile Home Park ownership is that Mobile Home residents frequently move compared to a traditional multi-family property or a single-family residence.

This misconception came about because of the term "Mobile Home."

However, these properties should be understood as "Manufactured Homes."

What other images come to mind when you think of the phrases "trailer park" or "mobile home park?"

Another massive misconception people have on this highly productive market is the generalization and stigma our society has (and most likely what your initial thoughts were) when they think about the tenant-type or demographic who would occupy these units.

"Low-income," "dirty," "drugs," "loud," disrespectful," "alcoholic’s," "redneck’s…" are just a few that come to mind.

Our team has found that most of that is simply...

The BEST Ways to Get Started in REI

"I've got it. I understand the wealth-building principles of investing in real estate.

I understand the WHY… now I need to know the WHAT… then I can determine the HOW!

I am ready to get started" 

If you find yourself thinking this - I invite you to continue reading, this article is for you. 

The Two Best Strategies to Get Started

Overall, real estate investing (REI) is one of the simplest and easiest forms of investment to conceptually understand. It doesn't come without it's growing pains, though. Understanding the nuances of underwriting, contracting, negotiating, residential or commercial lending, asset protection, estimating renovations, property management, managing renovations, etc. is difficult without prior experience, and seemingly worthless unless you intend on investing a SIGNIFICANT amount of time learning this trade. Even at its highest levels, where REI is...

Tax Tips With Brandyn Cox EA

The secret to any business—real estate investments are no exception—is buying low and selling high. That’s basically what wholesaling is. But as we’ll see, wholesale real estate investors never really buy or sell a property. They essentially sell the privilege of buying property.

How to Wholesale Real Estate

1. Develop a network of real estate investors and professionals
2. Research numbers for the neighborhood and market
3. Create a contract and a system
4. Purchase properties
5. Contact potential buyers

In retail, a wholesaler is someone who buys a large quantity of goods for a lower price per item, and then sells off each unit to retailers for a higher price. That might make you think that wholesale real estate investing involves buying a large number of homes from a developer to sell off one by one, but while that strategy exists, it’s not real estate wholesaling.

What is Wholesale Real Estate?

Real estate wholesaling essentially involves finding someone who...