All Forum Posts by: Clayton Silva

 True but that seems...what is the term for when the penalty doesn't match the crime.  Like excessive penalty, I think there is a legal term for that. Good outlook and sorry to hear it!

Is it possible to put the proceeds from the sale down on an investment property that will generate some income to offset the mortgage payment on the newer bigger home?  This way you both win!  Your frugal husband can still have a similar monthly payment or at least a lower monthly payment than what you would have otherwise on a new primary plus you get a cash flowing asset that will build your family's wealth!  And you get a bigger home that you can purchase with your increased earning potential.

You would definitely have to consult a 1031 exchange specialist, but my gut tells me that you should be able to as long as the following criteria are still met:

1) You never touch the proceeds and the money paid to vendors comes from the qualified intermediary

2) The purchase price of the MFH is more than the asset being sold

3) The loan on the MFH is more than the existing debt on the asset being sold

So, if I hear you correctly, you sent in a deposit for Earnest money to the attorney's office? Or did you send the actual down payment?  Either way you should be receiving that back from the attorney if the contract is broken by the seller.  

 You'll make it happen! You should come to our Stockton and local meet ups to meet investors in the area! DM me for some info on that if you'd like to learn more!

Has the Airbnb income been documented on your tax returns and will your DTI sustain a HELOC on the investment? Last question what state is investment property located in?

 Are you serious? Holy cow that seems steep for a 1st offense!  I'm really sorry to hear that.  Any penalty or fine, can always be challenged, and it may be worthwhile to take that to a local claims court or something.

@Ryan Sario The irony is that you will never know enough, that is part of the beauty and journey of real estate.  No matter how many deals you do or properties you buy, things will be missed, or something new will come up, or you'll learn something along the way.  The goal, for me at least, is to learn as quickly as possible by doing.  I have made a lot of mistakes this way, but I have also been able to expedite the learning process as well as my real estate portfolio growth by diving in and being willing to make mistakes.  I know this isn't necessarily the most encouraging message but I hope it helps!  The first is the hardest but they don't necessarily get much easier, you just get a little more confidence with each one!

Hey Jenn, great question! We help investors navigate this all the time!  So the rule is typically 10 loans will disqualify you from further conventional lending in the investment space, however there are plenty of non conventional (called non conforming or NonQM) loans that will still do the trick!  I personally have 2 (about to be 5 in the next couple of months when I finish some rehabs) NonQM loans and they are phenomenal 30 year fixed rate loans.  I would be more than happy to talk through your options because it sounds like you have several.  

Long story short: always try to get conventional financing first but when you run into the 10 loan limit or your DTI is maxed out, that is when you should pivot to NonQM or other options! (There's also a lot of benefit in NonQM if you are self employed).

Hope this helps!

That is super interesting.  While I do not currently invest in NJ, and I am not surprised, it is still good to know!  How bad was the fine?