All Forum Posts by: Eddie Brady

Since it is considered a line of credit instead of an equity loan, a $0 balance will show the same way any credit debt would, at $0. So your DTI should not be impacted by the amount available on the line of credit. If you need a lender in Indiana, I can recommend one via DM. I invest in Indianapolis so I have one I prefer.

Zoom meetings are where it's at! And one-on-one conversations with people who are local. Also, don't write off potential investments in Frederick & Carroll Counties! 

Hi Kara. Good question! First, I would recommend finding and actual loan officer instead of using online services. They will take the time to answer your questions, look at your financials, and give you a preapproval without having a specific property address. Online services will not help you much. A loan officer that works for a lender or mortgage broker will typically send you a letter stating you are pre-approved up to a certain amount.

You can find mortgage companies by searching under "Find Vendors" on BP. Next, give them a call and let them know what you're looking for and your plans. A good lender will be able to get you preapproved no problem. You do not need the zipcode nailed down right away.

Welcome to BP, Julia! If you need any help with first steps, don't hesitate to reach out to me. The hardest part is just starting. After that, you'll be amazed how quickly you learn about investing.

@Mike D'Arrigo in most notes, and definitely mine, it specifically states that the lender must approve all transfers, otherwise the acceleration clause would be able to be used. If they actually will act on that is a different story. But yes they will send you a letter or email stating it is okay to transfer.

Most people i've talked to haven't had issues with it. But knowing the lender COULD call your note due is not something to mess with if it's as simple as reaching out to them.

@Chad Kiel Welcome to BP! I'm a somewhat newer investor as well but have had similar questions before. You might want to look into:

1. Buying properties in your personal names with a mortgage to start, then Quit Claim the property to your LLC during renovations and before a tenant moves in. The main catch here is to get correspondence from your lender stating they will not use the acceleration clause in your note (most have this) to call your note due. The process itself is simple, you can contact any title co. ( I use Investors Title in indy) to draft the paperwork and then get it notarized. The title co will record the Quit Claim for roughly $200. As long as you have permission from the lender, this can work well.

2. If using Hard Money, 6 months to a year is not an uncommon amount of time to pay them back. In that case, you could keep the property in your personal names until the standard cash-out refinance. If you're worried about liability, talk to your insurance company about umbrella options or increasing coverage.

Looking forward to seeing what others have to say!

@Bjorn Ahlblad thank you!

How would you explain to an investor on how to analyze their first apartment complex for purchase? How do you guys prefer to run the numbers? What things do you look for that are good signs for value add and what things would you avoid at all costs?

@Thor Sveinbjoernsson so aside from this being incredibly hard to predict, even for true experts, why would you suggest selling off assets? Why take on a huge tax burden. Even with a 1031, what if the timing is off and prices remain high or increase during the search period.

This is classic speculating. Trying to time markets will either make you super rich or super poor. Sticking to your investment strategy through ALL markets has always been the most reliable way to build wealth. Sometimes, you have to pivot and improve strategy, but suggesting everyone on here create a fire sale is like saying to put all your money on black in roulette.

@Trevor Imlay it really depends on if banks restructure your amortization schedule. Normal forbearance works exactly like you're saying. Many banks are allowing the payments that are missed during the forbearance period to be tacked on to the end (only for COVID). Undoubtedly, some banks will not do that, but either way is speculating.