All Forum Posts by: Account Closed

@Jerry Poon Oh the fun DTI conversation ! for most banks this is a quick thing they will pull and abandon the loan if its not sufficient. I luckily have not run into this but anticipate it will be an issue every time I get a bank loan. as a banker I do see this issue all of the time. Due to federal regulations large banks have a real hard time getting past DTI. My first advice would be to see if some local smaller banks have less strict rules on DTI . Also please join your local REI or become actively involved with local landlord so you can begin to network. This will open up opportunities to partner up on deals or to even find off market owner financing available deals. The ladder happened to me and I ended up with 2 owner financed 4 units ! the other thing you can do is actually work on your DTI ratio so you are more attractive to banks. I will put a link at the bottom on a post from BP on what DTI is and how its calculated. Paying off a credit card or car loan can sometimes make a huge difference.

Also you said what do you do after you used your DTI up. In my experience as I purchase rentals my income goes up and I actually help my DTI once I can prove the income with lease's and tax returns . I am getting traditntal financing right now on a home for myself and my multiple rental obligations where not even a concern because I am honest and claim all of my income and my properties cash flow!

its a delicate game but as a banker my view is that if someone doesn't qualify with DTI it could be very risky for them to get into another investment until they can stabilize .

lastly some private lenders and unsecured signature loans have less qualifications than a mortgage so check out the link below that explains these loans !

https://www.biggerpockets.com/mortgage/home/debt-t...

A good link on peer to peer lending options 

https://www.biggerpockets.com/renewsblog/2013/08/0...

@Wendell De Guzman 

Thanks man ! I am still learning just like everyone but I think I can help some people out in the world of real estate ! 

 I just Re listened to your podcast the other day and it is a great one ! 

Please feel free to jump in on this post and help with some advice the amount of posts and messages I have been receiving has been incredible!

@Brian Towner

I am not a huge fan of the renting rooms out concept personally.  I would personally never want to move in that closely with strangers.  Also it depends a ton on your area.  Just looking at a 200K deal that property would have to pull in 2,000 a month in revenue after you move out to hit the 2% rule.  I would look more into a duplex that will cashflow when you move out and then rent the other half out and separate yourself from your renters with a nice wall lol.  also if you do this and have someone you know that you want to move in with you can rent a room in your half of the duplex and then also rent the other half of the duplex.  

This is just my opinion for all I know your concept could wok  out amazing I just personally would never want to live so close to someone. 

Jon Brandt So a few answers to your questions . I am a bit familiar with all of those areas as I am in that area currently. They all have a there pros and cons . I invest in the outskirts of the major areas because I can find some really good buy and hold properties at a fraction of what they would cost in saratoga , Albany etc. of coarse there is pros and cons to investing in a big city or outside of a big city . Saratoga is a very attractive place for home buyers so flips work well if you find a deal . Same thing with Clifton park . They have prestigious schools so all parents want those areas. Troy seems to be a better area for buy and hold but there is the ability to do all types of investing in this area in any market . Now on the FHA mortgage . The point isn't really the fees that some fees are financed and some are not . The deal is that you can get a 6% seller assist or also called seller concession . This 6% is financed into the mortgage and given as a credit at closing . the example I like to use is say you buy a house for 100k. Your downpayment at 3% would be 3k. Closing cost obviously vary but let's just estimate 7k for easy math. That would mean you would need 10k to close however You would actually get 6k in concession to help close the deal meaning you only need to bring 4 k to a 100k deal. It's pretty awesome stuff ! Hope that makes sense I was rushing on my lunch break to try to explain this lol!

Raymond Lucas there is so much potential in this are ! I have not invested in Albany particularly but there is so much around Albany that are really great prices. I am sure Albany has a ton of deals but I personally like the more rural areas. House hacking a FHA loan is an amazing way to start and that's how is started as well . Please feel free to connect with me on here and maybe we can meet up sometime or chat on the phone !

Ramon Cuevas all in all my advice would be to self manage and learn the grind of being a PM but plan on hiring it out and run your numbers as if you are going to hire it out. I love that you want to move to a house hack as there is so many benefits to doing so ! If you find a great deal and a solid area with a solid tenant base you shouldn't receive to many calls or issues on a smaller unit . This is the best time to learn what it's like to be a landlord so that when you do hire it out you know what your expectations, rules, goals etc are .

Ramon Cuevas well my goal just like everyone else is to focus on the bigger picture side of things. That being said we do not have a solid or reputable PM company in my area. That being said we could not comfortably hire out that part of the business . For us it started small with myself becoming a bit more handy , but as you grow you can afford to start to outsource . At this point we have grown a small team that answers phones and does all of the day to day maintenance and services . I am completely uninvolved at this point except for rent collection which I plan on switching to an automated system for that is well. The mistake I made was I wanted to be the landlord and give my number out and collect rent and kind of get my hands dirty when I started . The issues is as I have gotten bigger you realize it's not sustainable and is very stressful . I now just like to hire everything out and focus on the big picture .

Jon Brandt I am going to private message you. Those areas all have different advantages but I consider them all investable areas ! I really like this area a lot ! I will PM you shortly .

Jason V. Great point . I assumed it was forced hot air or a traditional oil furnace but great point !

Kyle Guida most investors end up in this spot after a while. My advice is create local relationships on here or in a your local RIA. For me I was able to connect with local landlords and ended up doing an owner financed deal when I was stuck. You could also look for a partner who maybe can get the loan and you can help with capitol etc. when you network locally really only good things happen. Also you can have your agent scrub the mls for deals that have owner financing available and see if any of them interest you . Last but not least I have asked owners who have listed a property if they will do owner financing and surprisingly some are very open to it ! You just have to keep grinding and don't give up that next deal is out there right now !