All Forum Posts by: Tim Delp

It is pretty clear that this will depend upon your adjusted gross income. One thing to consider is that whether you raise the rent or not is not really dependent upon obamacare kicking and the landlord now having a new tax but should be based upon fair market rent. If you can increase your rents because the residents don't have anywhere else they could rent for less than you should consider doing that. The open market will determine whether you are justified in raising your rents. If your tenants move out and you lose a few months rents where they would have stayed otherwise then it will take you a while at the increase of 3.8% to make up vacancies that is if you can replace what I'm assuming have been good rentes up this point.

I'm thinking you are referring to seasoning on ownership? When you are selling a home you have recently acquired lender require a certain amount of time to have passed before they will do the loan. Different lender set different parameters. The sooner after your purchase the more they will want to understand why a seller that recently paid $20,000 for a house is now selling it for $40,000 etc.
You also run in to seasoning if you have purchased a home and are now trying to get a traditional mortgage, lenders will typically allow you to use appraised value once you have owned/seasoned the property 12 months. Prior to 12 months they will allow you to use the value of your purchase price plus documentable improvements or the appraised value (whichever is less)

Curious to hear more about what you are sending and who you are sending it to and how you have developed this list?

Thanks for sharing!

Fannie Mae guidelines allow for up to 10 financed properties. Most lenders cap total number of Fannie Mae mortgage at 4 properties. That generally means 4 in total even if they are not all with that particular lender. Find a lender that can do up to 10 Fannie Mae financed properties and do your 10 properties that way. If you are married and both spouses work and can each qualify independently of each other I'd suggest each spouse buy 10 in their name. Once you hit the limit your next option is going to be to find a bank that will do portfolio loans (not a lot out there). The other option would be to try to find a bank that will do a commercial/blanket mortgage for several or all of your rentals under 1 commercial loan freeing you back up to go get 10 more Fannie Mae mortgages.

I think you would be fine calling for this reason. I would suggest your are driving in neighborhoods similar to the properties that you are going to wholesale. I would also suggest your look on craigslist and other sites and could use that as another resource for other phone numbers. You could possilby run in to issues with people being on the do not call list but I think if you are professional and explain that you saw their listing/property and simply wanted to know if they were looking for other quality below market values to add to their rentals, most landlords would probably welcome the call. Those that don't want to hear about more properties might be good source to help them sell their property. If I was calling I would be trying to work both angles.

You sound like you have it figured out. If you have not opened the equity loan when you do open the equity loan do not tell them you are using the proceeds to purchase another property. For some reason some lenders do not want to know that is what you are using the money for.

Agree with the responses above. If you are looking to hold a property long term it is well worth the process of getting a traditional mortgage. Bank loans below 5% are well worth the effort. If you have good credit, income and assets you should be okay.

If you are looking for short term financing then private money might be the route to go to avoid the hurdles.

I'm assuming when you say put a rental property in your IRA you mean purchase a rental property with money inside your IRA? If you already own a property you can put it in your IRA. There might be some way where you could transfer up your annual limit of value in to your IRA each year but you would need a current value and subtract that value and would be very costly doing appraisals each year as well as I think easy transaction to cause your IRA to lose it's tax deferrred status if done wrong.

Most of your questions appear to have been answered in the 2nd response but a couple points to think about on whether to own in your IRA or not.

While a property in your IRA will cause you to avoid paying income taxes you will lose the ability to depreciate your property which for most is a great advantage and reason they like investing in real estate.

Also it is very difficult to obtain non recourse financing to leverage your purchase inside your IRA. There are a few companies that offer it at competitive terms but they are very selective on their loans they will entertain. Leverage is another great thing about investing in real estate and the terms and availability are much better outside of an IRA. Also when you use leverage you get the further advantage of being able to write off the mortgage interest.

Since it appeared that one of your primary interest in owning inside the IRA was to avoid taxes I think it would be good to get a good understanding of what a typical cash flowing rental with leverage ends up looking like when you factor in depreciation and an interest write off. Very likely to be cash flow positive but tax neutral.

If the home has not been auctioned on the court house steps why not simply enter into a purchase agreement with this lady and attempt to do a short sale, if that doesn't work then buy it on the courthouse steps if you are in a position to pay cash.

Karen M. I'm both a buy and hold investor and private lender. I don't do lending on medical so I think if that is what you are looking to get private lending that is a much different question. Not sure what size loan amounts you are talking about but that sounds like commercial lending, I guess it could be done by private individuals as well. I only do residential private lending and primarily for short term.