All Forum Posts by: Account Closed

You may want to ask a local real estate agent and/or property manager for their professional opinion.  Zillow also has rental amounts.

@Ernie Cruz: as I understand it from previous BP podcasts and blogs, the mortgage company has the right to tell me to pay up since I took the loan out in my name but then deeded the title over to my LLC (which my wife and I are the sole owners). Apparently that counts like a "sell" and thus they have the right to demand payment. I'm sure there's more to it but I believe that's the gist of it.

You might start by getting @Brandon Turner's book on Investing with No (and Low) Money Down available right here on BP.  You should also start listening to the podcasts (if you are not already) and surfing the forums for info on how other people pulled it off.

As for me, I did both:  I have a career with the Navy and used that money, plus some borrowed from family, to start off flipping houses with my wife.  We used the proceeds from several houses we did in 2014 as the down payment for a rental that is cash flowing and appreciating.  Now we have three rentals and are dipping our toes in property development.

Do your homework, get creative, and you too can get the snowball rolling--and growing.

We just bought a house through auction.com too but my realtor wife handles all this kind of stuff.  In our case we are buying from JP Morgan Chase who took over the house when the previous owner(s) lost it.  I assume the same is true in your situation with Midfirst.

You can try asking the seller but your best bet is to call a title company in that city or county and they should be able to run it for you.

If you are working with a realtor then he or she should be able to clear this up.  Otherwise, unless it is specified in the purchase contract agreement, you would need to submit a request for repairs with the seller and negotiate who pays for what.  Obviously it depends on how serious are the issues requiring repair.

Look at it this way, Katherine: forget everything you've done up until now including the reasons for doing them. What do you want, right now, today? If it's a house in an LLC well then, you have both, marry them up. A business account? You have that too.

On the other hand, if you just want too keep the houses in your name and simplify your accounts, then close, cancel, or shut down everything and make things the way you want them, today.  Don't worry about sunk costs or any other past choices.  Learn and move on.

That said, I have two rentals with mortgages in my LLC and I keep hoping the mortgage holders don't come knocking with a due-on-sale clause. I didn't know about that little tidbit until after I converted them but if they do come, I'm told I can title them back and should be fine (just wasted time and money).

Also, I have a separate checking, savings, and credit card accounts for my small real estate business and I highly encourage you do the same.  I use the credit card for expenses, in the savings account I keep my renters' deposits and the estimated end-of-year tax payment, and the checking is simply a working account where money comes and goes as required.  In my opinion, it's better to keep all that separate from your normal day-to-day personal living.

Hope that helps.

I'm not sure what you mean by this, Norberto. You can buy homes the old fashion way--with an agent through MLS listings, you can buy a home from the owner without a realtor, you can buy homes at auction, there are probably more ways...

Can you be more specific?

Well then you came to the right place.  Welcome.

The first thing you should do is spend some time getting to know the BiggerPockets site--there is a wealth of info on here.  Check out the forums, blogs, and resources.  That's step one.  Step two, after you get a little knowledge under your belt, is to get out there and start pounding the pavement.  Get off the sidelines and get in the game.  Your results will be directly correlated to your effort (...at least for now, until a certain candidate gets elected, but let's not go there).

Good luck.

Any time you seek consumer credit your credit score and risk will be assessed by the potential lender, just as you would do if you were going to loan something valuable to someone.  A rental home mortgage will absolutely affect your ability to purchase your own home.  If you are working with a lender you should share your plans and find out if the move will be helpful or a detriment, based on the rest of your financial situation.