All Forum Posts by: Andrew Postell

@Danielle Scott If I understand your post correctly, you rented out the rooms in your AR home to others.  And this home was your primary residence.  You likely put down less than 20% if it is your primary residence and this is probably the main cause for you to take a loss on the property.  Don't forget though that the moment you begin claiming this rental income on your taxes you will actually see more profits.  Since the home would then be an investment the home can now be depreciated, you can write off the property taxes, insurance, maintenance, etc.  Most investment properties start with 20% down and that's how they see immediate cash flow on the property.  If you started with 5% it would make sense that your mortgage payment is higher.  The other item might have been that your home might be more desirable to own than to rent.  Investors specifically choose properties that will rent well.  You may have bought your home because it showed some benefit to your family which is a good reason to buy a home.  So the rental income might be a bit lower than another property in a different part of the town.   This is assuming you are renting it for the most you an possibly rent it for.  I hope some of this helps your understanding in why the numbers may look they way they do.  

@Mike B. Lines of Credit on an investment property are normally obtained by local lenders. The ones we use here in Texas usually only have just a few branches. If you have some investor networks in your area it would be good to attend some meetings, join their website forums, etc. You also might try a post similar to this here but use the city you are needing the LOC in the subject line to help other BP to identify your post to comment on it. Hope this helps!

@Wade Stahle you can sell your property with a conventional loan on Day 1 of ownership. The mortgage you hold on your property is not the item that would hold up a purchase. Sometimes the buyer of the home needs an FHA loan. FHA loans require the seller of the property to hold the property for 91 days. So you can sell your property whenever as long as the buyer isn't an FHA buyer. If they are then they either need to change loan types or wait for you to be on title for 91 days. I hope this helps.

@Warren McEnulty welcome to BP. I'll Private Message you so we can connect.  Thanks!

@JJ S. a commercial mortgage does not normally appear on your personal credit report unless you personally guaranteed it.  Personally guaranteeing a commercial mortgage does not guarantee that it will be on your personal credit either.  It's not impossible for it to be on your credit but extremely unlikely.  Consult the bank itself and they will guide you on their process.

Personally guaranteeing a commercial mortgage could result in that property being on your history.  It certainly depends on the note that was executed and how the deed was structured.  If you have a property that this applies to then you can review the loan documents or have an attorney review to guide you best.

@Kendell Nunez try looking for some real estate investor clubs in your area.  Meetup is usually a good starting point.  The networking groups should be able to help best.  Good Luck!

@Daniel Saunders some important concepts in what you are asking is that hard money loans are NOT sold back to the bank because a hard money lender (HML) grants notes that are outside of normal banking parameters. Banks either have portfolio loans or government sponsored loans. If you were acting as a residential mortgage broker who had a correspondent agreement with a bank and had warehouse lines of credit from a banking institution then you would need to make sure your conventional/fha/va/etc loans conformed to that lender's warehouse line with you so you could sell the loan back to the bank. Once you "sell" that loan back then your warehouse line goes back to the original amount and you can lend more money.

A hard money loan does not fall into this parameter. A hard money loan is essentially private money...your private money or your company's private money. The money you lend runs out when you lend the last of it. And this is why a HML is a short term loan with a balloon payment...so you get the money back and lend it again. HML setup their own payment structures, will be responsible for writing/filing the notes, and also be the party that would foreclose on the property if that becomes necessary. I hope this helps.

@Adrian Reyes each bank will have a little different process than another bank.  If your friend has a bank that he likes then just go to the bank and they can guide him on what to do.  He should not need anything to find out the numbers and the process with each bank.  If he needs recommendations on a bank the shoot me a private message.  Thanks!

@Mark Creason could you provide some assistance to @Matt Buchalski please?  Thanks!

@Joe Wright & @Mike Reynolds  Don McCartney has been a CPA since 1981 and a real estate investor since 1976.  He knows how to navigate taxes and the rules that we face specifically.  The name of his business is Donald G McCartney, CPA.  I would firmly recommend him.  Thanks!