All Forum Posts by: Varinder Kumar

What if the seller and the buyer has agreed to close escrow +2 days and the seller doesn’t leave after those two days?

Which recording do you use for these? 

like a cosigner lol

if you don't want it send it my way ill gladly take it 

1. Ownership and Debt-Free Status: When you pay off the portfolio loan, you own the property outright, free and clear of any mortgage debt. This means you no longer owe any money to the lender related to that specific property.

2. Property Title: The property's title will reflect your ownership, without any liens or encumbrances from the mortgage.

3. Selling Options:

a. Sell Individually: You have the option to sell the property individually. You can list and market it as a standalone property on the real estate market. Buyers can purchase it without any involvement with the other properties in your portfolio.

b. Sell as Part of a Portfolio: Alternatively, you can choose to sell the property as part of your portfolio if you have multiple properties. This might be a strategic decision if you want to divest from several properties at once.

4. Market Conditions: Your decision to sell individually or as part of a portfolio may depend on market conditions, your investment goals, and your financial situation at the time of the sale. You can assess which approach makes the most sense based on factors like property values, demand, and your long-term investment strategy.

5. Capital Gains Tax Implications:Keep in mind that there may be tax implications when selling real estate, whether you sell individually or as part of a portfolio. Consult with a tax advisor to understand the tax implications and any strategies to minimize tax liability.

It's important to note that paying off a loan according to its original term (e.g., a 15-year or 30-year fixed-rate mortgage) without prepayment penalties gives you the flexibility to decide how to manage and potentially sell your properties in the future. 

I don't believe in cashflow etc I believe if you have the income to support a property while being able to grow the rental portfolio then you should do it. Its amazing to me to see people don't hesitate to spend $1500 on a Mercedes but god forbid they have to fork out even $500 out of pocket for a property that will appreciate in value, all of a sudden their having a hernia over it, priorities. 

To answer your whole question:

1. Purpose:

• Portfolio Loans: A portfolio loan refers to a mortgage loan that is originated and held by the lender in its own investment portfolio rather than being sold on the secondary mortgage market. These loans are often used for residential or commercial properties and can have various terms and features. The primary focus of a portfolio loan is not necessarily the property's cash flow but rather the lender's strategy to hold the loan in their portfolio.
• DSCR Loans: DSCR loans, on the other hand, are typically commercial real estate loans used for income-producing properties such as apartment buildings, office complexes, or shopping centers. The primary purpose of a DSCR loan is to evaluate the property's ability to generate sufficient income to cover the debt service (principal and interest payments) on the loan. DSCR loans are specifically designed to assess and ensure the property's cash flow.

2. Underwriting Criteria:

• Portfolio Loans: The underwriting criteria for portfolio loans can vary significantly depending on the lender's policies and objectives. While creditworthiness and property value are considered, other factors like the borrower's relationship with the lender and the lender's risk appetite can also influence the approval process.
• DSCR Loans: DSCR loans have a specific underwriting focus on the property's cash flow. Lenders offering DSCR loans primarily evaluate the property's income, expenses, and the resulting Debt Service Coverage Ratio (DSCR). A minimum DSCR requirement is often a key criterion for approval, ensuring that the property generates enough income to service the debt.

3. Property Types:

• Portfolio Loans: Portfolio loans can be used for various types of properties, including residential homes, commercial properties, and even non-traditional real estate investments. The property type and borrower's profile may vary widely.
• DSCR Loans: DSCR loans are typically used for commercial income-producing properties. These properties are expected to generate rental income or cash flow to support the loan repayment.

A DSCR loan, also known as a Debt Service Coverage Ratio loan, is a type of loan commonly used in commercial real estate financing. The Debt Service Coverage Ratio (DSCR) is a financial metric used by lenders to assess the borrower's ability to cover their debt obligations, specifically the principal and interest payments on the loan. DSCR is calculated by dividing the property's net operating income (NOI) by its annual debt service (loan payments).

Here's how the DSCR is calculated:

DSCR = Net Operating Income (NOI) / Annual Debt Service

In the context of a DSCR loan:

1. **Net Operating Income (NOI)**: This represents the income generated by the property after deducting all operating expenses but before deducting interest and principal payments on the loan. It includes rental income, operating expenses (property taxes, maintenance costs, insurance, etc.), and other income like parking fees.

2. **Annual Debt Service**: This includes both the principal and interest payments on the loan. It's the annual cost of servicing the debt associated with the property.

Lenders typically require a minimum DSCR to approve a commercial real estate loan. The specific DSCR requirement can vary but is often set above 1.0. A DSCR of 1.0 means that the property's income covers its debt obligations exactly. Lenders may require a DSCR greater than 1.0 to provide a margin of safety, ensuring that the property generates enough income to comfortably cover its debt.

For example, if a lender requires a minimum DSCR of 1.25, it means that the property's NOI must be 1.25 times greater than its annual debt service to qualify for the loan.

A higher DSCR indicates a lower risk to the lender, as it suggests that the property is more likely to generate sufficient income to meet its debt obligations. Borrowers seeking DSCR loans need to demonstrate strong cash flow and financial stability to meet these requirements.

program is $16K on the initial call which is the sales call, the sales man will really drill you and put you on the spot as to why you need to think about it and why you're not joining right away. They also start the call off by making you feel like you need to be good enough for him and psychologically play a game to where you feel lucky to be given the opportunity. Let's just say its not easy getting off the call with these guys. they really work you. also there is no one on one, you basically are on a group call with all the other members and if you have a question then you raise your hand and he may or may not call upon you so how do you get help with anything, well the answer is you have to use the group and other members to help you. Im not a rookie at this I have done many calls with different so called gurus and the tone is the same. Truth be told you can learn it all on here. there are plenty of resources online. Save your money, use your time wisely and learn it else where

Hello everyone, can anyone refer a tax attorney or tax professional who knows about using tax credits that the IRS owes them towards the purchase of Real Estate. Need to make sure everything gets recorded and documented properly. Thanks