All Forum Posts by: Chinmay J.

@Jacqueline Cayasso - The lender will approve you based on your creditworthiness (income, debt, credit score, ratios etc). The property you plan to buy needs to fit within that criteria.  If you are paying your  own closing costs, you can bring them to closing as a certified check or roll over in the loan.  A lot of times you can even get the seller to pay for your closing costs.   Get a decent realtor to negotiate the deal. 

Not a lender, but your question is pretty basic.

 Great point. Never make GOOD enemy of PERFECT, because there is no such thing as PERFECT.

@Rohan Attravanam - Sorry man.. Your post is riddled with tons of mistakes, but I think your number 1 mistake is not realizing what is your number 1 mistake. You have family in Tampa, FL, so you thought, just based on that and the fact that Tampa is a growing market, its a wise thing for a newbie to invest across the country?  I know Bay area market is terrible for newbie and cost prohibitive, but you seriously couldn't find anything closer than Tampa, FL?  In my case, I would run away from family, but that's just me. LOL. 

Since you opened this can of worms, your second mistake, in my opinion, would be making offer based on videos? Thank God your contract fell through, and all you lost was rent + deposit (if you ask me). Who knows what else could have been wrong with property? And when exactly were you going to do your OWN due diligence? After closing? Unless you have a really good trusting relationship with the realtor, you should never even dream of that.  And who is this genius realtor anyway who wrote a contract for you with that kind of contingency (1 month Deposit + Rent... seriously?)  It never struck you to let the seller rent the place as is and fix it up later on.  You would have inherited a tenant, and by extension cash flow.  

I think the real mistake # 1 is that excitement got the best of you, and you made some really hasty decisions. I blame @Brandon Turner Just kidding Brandon...lol

I wouldn't even go through other mistakes. Good luck on next deal. Hopefully, you will look for something closer to home. How does Boston, MA sound? 

@RG Mulcihy - So if you want to do house hacking, one of the conditions is that its something you should be OK living in. Lets start there. Only you know answer to that question. You might want to walk the area, get a feel for the neighborhood. What you have stated is a pretty good start. I would add quality of schools in that list. If you are going to house hack, you can get an FHA loan with 3.5% down for properties up to 4 units. It doesn't have to be investor loan of 20-25% down. So you might want to talk to a lender about it. Good luck.

@RG Mulcihy - Tell us a little bit more about your investment goals. You can invest in real estate in  million different ways, what a flipper may be looking for would be different than what "buy and hold" investor would be looking for in terms of benchmarks.

My understanding in this is limited at best. As far as I know you don't have to send 1099s to Corporations as long as they are elected to taxed as such. Attorneys on the other hand are exceptions. You do have to send 1099s to them.  

You can go to IRS website and read for yourself and I think you should also consult a good CPA who understands real estate.  Paging @Brandon Hall.  

@John Horner - Congrats. Hope to hear from you on podcasts sooner than later.

Thankfully there is a provision already in the RESIDENTIAL REAL ESTATE CONTRACT form K1321 that allows you to deposit Earnest Money once you have ratified contract. There is an option to do the deposit with the contract as well, however, I like the former option. 

@Russell Brazil and @Christopher Phillips - I see what you guys mean. Thanks for the education. 

@Christopher Phillips - I am a licensed realtor in VA, and we have NVAR K1321 form that we use. Its TITLED RESIDENTIAL SALES CONTRACT. Until its signed by all the parties, its an offer. Once it is signed by all parties its a RATIFIED CONTRACT. That is how typcially most realtors in NoVA area submit offers . Do you do things differently in New York?