All Forum Posts by: Fred Shandler

Good thread....So for all of the seasoned investors -do you take advantage of equity to assist in continued investments or are you typically conservative using this method?

Also, if you have purchased a home using equity from another, do you typically then finance conventionally and repay your heloc? What happens in the event that your not able to pull the full amount paid (out of your refi), how would you handle the outstanding balance due on your heloc?

Thanks!
Fred

Wow, very cool.

Just make sure you don't do the nasty on the beach

http://news.bbc.co.uk/2/hi/uk_news/7498357.stm

Wheatie, one of the ideas I still have a tough time with (as it relates to the 50% rule) is how to adjust projected operating expenses for high property taxes.

For example, there is a two family house that rents out for 1k p/m, total (12k p/y). According to the 50% rule, taxes should be around $1,200 p/y. Taxes are actually $1,800. So, does that mean that I would need to take the $600 difference of actual ($1,800) and projected ($1,200) and factor that as an additional $50 p/m?

Thanks!
Fred

Another question, I've recently applied for two business cc's -both of which required my ss# and both of which looked into my credit history. None asked for my tax id, however. Am I doing something wrong? I have excellent credit and would prefer my score not be brought down by applying for cc's. Can I obtain business cc's without them looking into my credit/how do I not have them show up on my credit report? (My LLC is three years old).

When talking to a lender, would a normal first question be: "Do you offer investor loans based on the LTV"?

wow, interesting. So what should my response be when a bank tells me they require a minimum of 10% down?

Mike, are you saying that because you've purchased your property at a tremendous discount, that your bank will loan you the full purchase price? Can you expand on this?

Thanks!
Fred

It seems, in my novice opinion, that most sellers typically are not open to owner financing. But again, if a seller who normally wouldn't be open to owner financing could be convinced to do so, as a result of a short-term agreement, this would seem to be a good strategy.

(Another rookie questions coming) If an owner agrees to do financing for a short-term, what are some payment terms that could be expected. For example, a 30k house, owner financed for two years, balance then due. Would offering (I'm just arbitrarily mentioning a number) $200 per month plus 7% interest even be acceptable?

I'm completely in left field when it comes to this type of agreement/terms, which is why these questions are so basic.

Thanks in advance for the replies!
Fred

Interesting, it seems (particularly with lower income rentals) that doing a MTM gives the landlord more leverage and more ability to avoid a worse situation.

-Fred

So it sounds like a mtm lease can give the landlord more flexibility, as you can simple notify the tenants that they are to move within 30 days. Of course, this is state specific, but have you actually had to give a reason as to why you were giving them 30 days? Does it need to be justified reason?