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Wednesday, February 15, 2012

Did You Know a Section 8 or Plan Ocho
Voucher is Portable?

While interviewing April Johnson from Miami-Dade Public Housing Agency MDPHA I heard the term "Portability" being used in our conversation. I was familiar with transferring vouchers but I never heard the term portability being used. I decided to ask her what exactly did this term mean.

April mentioned that any tenant that had a Section 8 Voucher in good standing, could live in the jurisdiction of a housing authority anywhere in the United States that is administering a tenant-based (Section 8 Voucher) program including Puerto Rico and the Virgin Islands.

But there are certain guidelines and facts that you must be aware of:

  • Don't take for granted that the rules are the same for each housing authority. Each PHA has its own rules, regulations and deadlines that you must follow.
  • Fair Market Rent limits or payment standards may be different for each Public Housing Office PHA. Remember they are calculated by Zip codes.
  • The utility allowance may be different and may affect the rent amount you pay. Florida utility bills are much higher than Puerto Rico. I know because I lived in both places.
  • Rental subsidy standards may be different. I can recall the differences in subsidy payments from Miami-Dade to Homestead Offices. These offices are in the same county.
  • The new housing authority will issue you a different voucher, which may change the size (number of bedrooms) that you maybe eligible for. I can't tell you how many times this issue would come up while discussing voucher transfers.
  • If you decided to transfer you have to re-verify your income and do a background check. One of my tenants was kick out of the program because her son, not her, was caught dealing drugs. You may open a can of worms for yourself.
  • If you are new to the Housing Choice Voucher Program, you may have a waiting period before you can transfer to another jurisdiction of a housing authority.
  • If you decide to use the portability option of your voucher, make sure you contact your home office to start the paper work. This may take a while so give yourself some time.
  • Oh yeah, you better have an idea of where you want to go! Your home office can't do much if you can't tell them where you are going. You may want to visit the new housing offices so you can get an idea what will be involved and GET contact information to present to your current HOME jurisdiction.
  • By moving you are going to incur changes in your cash flows; security deposit, rental down payment, different tax structure, cost of living changes, insurances, education, transportation...on and on and on.

What does "Portability" have to do with real estate investing you ask? Miami-Dade Florida is a popular destination for voucher transfers and can be another channel in your marketing efforts to get tenants into your rental properties.

Do you have any experience with Section 8 voucher transfers? If so, tell us about it in the comments area below!

Related Links, Blog Postings, Presentations or Articles:

Written by +Bob Burns.
 
####
 
The caricature of Bob BurnsNo Fear Baby!
Bob Burns Print Signature Photo
Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: rkburns@investmentpropertiesmiamiflorida.com
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Monday, January 23, 2012

Do You need FUNDING to be a Real Estate Investor?

Eventually a Real Estate Investor will hear about a deal that is too good to pass up but their CASH is all tied up in another deal. There are no funds to purchase or repair! Time to borrow money!

But before the phone call is made, Investors need to:

 

 

  • Act Quickly before the deal is sold to another investor.
  • Ask questions about:
    • Will the owner accept "No Money Down?" If not, what is the minimum down payment?
    • Can the down payment be something other than cash?
    • Will the owner hold paper? If so, up to what percentage?
    • What are the monthly carrying charges? (Insurance, utilities...)
  • Determine the properties Maximum Allowable Offer MAO so you can make an offer that is going to make you money quickly.
  • Make sure you have multiple exit strategies.
Once you feel comfortable about the terms of the deal, time to dial your Lender's number! Good Real Estate Investors always have funds available 24/7 to take advantage of transactions that magically appear.

Lenders are adverse to risk so here are some questions you should ask the funding entity:

  • What states are they licensed to lend money?
  • Will they fund the deal based on the After Repair Value ARV (good) or the contracted price on the Purchase Agreement (bad)?
  • Will they fund the repair costs?
  • Is there a Prepayment Penalty?
  • How long can the investor borrow the money for?
  • Up to what percentage will they fund? If your contracted price is $150K and they will only fund 70% what is the total amount that they will lend? Answer:$105K. That means you have to come up with $45K. OUCH!
  • If needed, can the investor get more time?
  • What are the repayment terms? Are these terms negotiable?
  • Are there any Closing Costs, Points, Etc.?
  • What are the Minimum and Maximum amounts I can borrow?
  • Are there funds available 24/7 to take advantage of NEW investment opportunities?
Every real estate transaction is unique so there are different type of loans you can use for each deal depending on the parameters. Here are a few names you have probably heard of:
  • Conventional
  • Hard Money (Quick but expensive)
  • Private Money Lender (Best Option)
  • Transactional Funding (Good for Short Sales)
These all serve a purpose and have advantages and disadvantages for real estate investors.

Here is a list of lenders that you can work with. Web Links are below:

Bridge Loan for Multifamily Properties

Bedford Lending Introduces 7% Interest Rate Bridge Loan
For Distressed Apartment Investors

Hard Money Lenders

Brookview Financial

Capital Funding

Financial Help Services

Hard Money Today

Hard Money Lenders Directory

Onward Financial

PeachStone Capital

Rehab Funding

Wooden Nickel Funding

Florida Hard Money Lender

Private Money Lenders

Alan Cowgill Private Money Webinar 1st slide image

View Alan Cowgill's Private Money Webinar - Raise all the PRIVATE money you need for your Real Estate Transactions.

Mr Private Money

Trajan Financial CORP.

Transactional Funding (Good for Short Sales)

iV Transactional Funding

One Day Funding

Related Links, Blog Postings, Presentations or Articles:

Written by +Bob Burns.
 
####
 
The caricature of Bob BurnsI Love Fort Myers Beach!
Bob Burns Print Signature Photo
Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com
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