All Forum Posts by: Brian Person

Dodd Frank is short for the Dodd-Frank Wall Street Reform and Consumer Protection Act. It is a Bill that was passed in Congress in 2010 in response to the Great Recession in 2008-9. Basically it added a ton of regulation to the financial industry. I would take a few minutes and google it. Would be easy to read about it than have me explain. Haha. 

@Steve Vaughan. I also wanted to point out that in Ohio a land contract is recorded with the county auditor. 

@Steve Vaughan

I understand what you are saying. We initially wanted to do a deed of trust, but the seller preferred the land contract. We know the seller and bought four properties from him. We also know his financial status. Also, my dad is the Chief of Police in the city we are buying in. So we are not worried about that. Also, we will refinance the properties in the spring to pay off the land contract. Every deal is different and I don't know if we would do that with a seller we didn't know and trust. This gentleman has owned the rentals for over 30 years and is in the process of retiring. So he is selling all of his properties. I believe he owned 17 or so and all free and clear. So again, its about knowing the deal and the seller before agreeing to a contract like this. 

@Robert Ellis. My dad and I have two properties we bought using land contracts with owner financing. The contracts are in the name of our LLC, RNB Holdings, INC, but we did have to personally guarantee them. The same went for the two properties we did commercial loans on. The loan and title is in our LLC, but we had to guarantee them. I really like our commercial lender we used in Xenia. So this is basically what @Tristam Griffith was saying. Haha

Here is the best way to calculated rental income. This is from the Fannie Mae worksheet. 

From Schedule E

Rents Received (line 3)

- Total Expenses ( line 20)

+ Insurance expense (line 9)

+ Mortgage Interest ( line 12)

+ Taxes (line 16)

+ Depreciation ( line 18)

This would equal your adjusted rental income. Then divide number by 24 to get monthly come. Then subtract your PITIA to get Monthly qualifying income or loss.

Here is the link
https://www.fanniemae.com/content/guide_form/1038....

Hello @Samantha Klein, @Chris Mason is correct. I was a mortgage lender for four years before I had to take a medical leave, which is when I jumped into the investment side. You should mark the property as a rental on the verification of mortgage page and then use the schedule E to calculate the rental profit/loss. @Mark Merdita used the correct calculation, however, i knew plenty of underwriters who did not calculate this correctly and had to be fixed. At the time I had rental calculators that I would give to the underwriters to make sure we were on the same page. 

@Brad Clarizio, 

You mentioned you only pay $125 per door including labor. Does that include just replacing the slab or is the replacing the frame as well with new pre-hung doors. Just asking because I recently had new pre-hung doors installed in my personal home and it about about $120 for the labor alone. 

Thank you, 

Hello. My name is Brian Person. I have been in the mortgage industry as a Loan Officer for the past few years, but due to some life events, have taken a leave from work right now. I am interested in learning about how to get into Real Estate Flipping, but my true desire is to get into rentals to create long term income. I'm looking for information on the best way to get started in this industry. I decided to join BiggerPocktes after I watched a webinar from Brandon Turner and decided to try it. I have gone to some investor classes in the past as well. 

Thank you,