All Forum Posts by: Account Closed

The majority of "residential" lenders will sell their loans to Fannie Mae or Freddie Mac. Those two will not buy more than 10 loans per individual. So you are capped out. Now some local banks may "Portfolio" loans (meaning they keep them in house).

Commercial loans are backed by private funds, groups, VCs or kept on the books by larger institutions even smaller ones. This means they do not have to play by the Freddie and Fannie rules.

With that being said, if you have a loan in your personal name, it is recorded against the deed/title. This means, if you get a loan in your personal name, even if you the title is in a trust, or LLC, you are now going to named in any lawsuit should a tenant, their friends, etc get hurt etc. on the property.

You should also have insurance, but a properly filed, kept and operated LLC will add to that level of liability protection.

Did that accurately explain it @Martin Zawarski ?

In other words, I will say this yet again. This is a BUSINESS. Treat it as such. Do not endanger your personal assets, and file your entity as you would if you were to start a restaurant, an auto shop, a car dealer, etc.

Stop treating REI as a hobby. Deal with BUSINESS Bankers, as you are a Business person.

@Douglas B.

1. yes you can and yes you should!

2. YES you can. And again SHOULD. if you know you have someone living in a unit being paid for by Section 8 of another, SEction 8 wants you to tell them!!! Because they are qualified for Section 8 based on total household income. If another person there is making money, their Sec 8 should be modified.

@George P. thanks for the compliment. If you do this as a business, why do it in your own name? Time to change that mindset. You can still do the rest the same way, but you are hitting limitations, and you need to learn how to do COMMERCIAL loans. You may pay a tad more, but isn't it worth it for the knowledge that the liability protection is there for you?

@George P. congrats to you good sir! 25% down, is it own in your owned name? If so, how many loans do you have in your own name? Might be hitting that Fannie Mae limit. I want to see you get to 50+!!

Keep us all informed how it goes.

Everyone that is a legal adult NEEDS to be on the lease and you should run a check on. No questions. Now your tenants may ask not to have a person on the lease because Section 8 won't pay the full amount then.

I would not aid in the tenant committing fraud then. The other person probably makes to much money for the Sec 8 recipient to continue to get assistance, but they want that free money (which is the hard earned dollars you earned being taxes so they can LIE about their living conditions). Don't aid in it!

You could be found liable if you knew and didn't report it yourself!

I don't have experience with Mr. Landlord personally, but have had positive experiences with NTN. They are always easy to reach, at least local here to Chicago, and actually have given some great presentations at landlord groups here, NO SALES, just suggest you do certain things. Keeping you apprised of the ever changing regulations that face landlords.

1. Being honest
2. being honest
3. being honest
4. Getting out front of issues by being forward with lenders, partners, contractors, tenants etc
5. Communication, communication communication
6. Doing what I can to ensure new investors aren't taken for a ride by slimy dishonest people.

I am not sure where they live, but many municipalities now have "Rental Registrations" whereby they can call that office, and file a complaint. An inspector would come out and FINE the landlord until the necessary repairs were made.

IF that doesn't exist, then a tenants rights attorney seems logical. They need to take photos, keep a record of any and all communication with the landlord, as well as any inspections they have done, need to keep bids, reports, etc.

@Cristina Robles for me the first question would be, if you sold your own home, where would you live then??

You don't have to have money to begin investing. Just need a confidence and energy to find people that have the resources.

"NO MONEY DOWN", Just means "None of your money down".

Good luck!

@Jason Flynn That is a great post. I am so happy you took that step and went. YOu sound energized, invigorated and more confident. ready to take on your first deal!

I am happy you posted your positive experience at your REI Club meet. There are many great things that come from them, and many great individuals that attend.

Good luck to you in your future investing!