All Forum Posts by: Cody Steck

Wow, thank you everyone for the wealth of knowledge. 

I like what you said @Bill Gulley said though, I feel I would be better off getting MLO licensing and searching for opportunities with that as a loan officer assistant (until I build knowledge and track record in the position and can move up) or even as loan officer to begin with. I briefly talked with a loan officer from my local REIA and he highly recommended just jumping right into mortgage loans and becoming a loan officer. Although he might be slightly biased ;)

Thanks again

I searched the internet but figured I needed some real world advice on this one and I figured this is the best place to ask as it is still somewhat relevant.

I have gone through some interview steps with an auto loan lending company that buys subprime auto loans. My initial goal is to get into the mortgage industry but I am having a hard time with a tough market and I have a lack of experience in loans. I am fairly certain that I will be offered a position and I am wondering if a job like this is similar enough to residential or commercial lending that I might be able to transfer my experience 1 or 2 years down the road. 

I do not necessarily want to stay in this position for the long term but if it can give me some experience that would be helpful in real estate then I am interested in doing it. It might also open my eyes to see if I even do like the lending side of RE.

Any advice, tips, help is appreciated. 

Thanks

Bringing this post back from the dead. 

Adding the new mortgage and rental income to your DTI only works if you have 2 years of landlord history correct? How do you get around the very high DTI ratio if you can't count part of the rental income from the new investment property?

I like where this thread is going. I am also trying to come up with common strategies for partners.

Is it pretty easy to get financing in deals like this even if it is not specifically your money?? For instance, let's say you have a great credit score, but are lacking capital. If you find a partner to come in and finance the down payment (20-30%) and use your own credit, is the bank going to be more lenient on other things like your income and DTI ratio? Would the bank look at both parties' income in determining credibility or only the person using their credit to finance?

Thanks!

In higher end houses I think you can definitely expect to see some of these styles. However, I think the very modern styles causes the kitchen to lose some functionality which can be undesirable when renting...

 That's kind of what I figured. It looks like now is a good time then!

I have two roommates who are now living with me. I am curious if the income generated from this would require the 2 year rental income requirement that most banks require in order to count rental income in DTI ratios. As far as I understand, the income has to be reported on your tax return for at least two years.

Does this make any difference if I were to record and track the payments through a separate bank account just as I would with a regular rental?

@Jay Leisten I respect your view on the debt free way of doing things. However, I feel that as most of the stuff Dave Ramsey teaches is for getting out of bad debt. As Robert Kiyosaki teaches, there is a difference between bad debt and good debt. If you can harness and use good debt to further your wealth, you can accelerate the process. I use to think the same thing about "all cash", however, after reading and running the numbers time and time again, it really just makes sense to use leverage. We all have different goals and ways to get there but it's just something to think about. 

It sounds like properties are cheap enough in your area that you could do it and make it work.

Best of luck!

One thing to keep in mind is your CoC return. Your return will be higher by using leverage and will allow you to accelerate the process if you plan to roll your cash flow back into investments.