All Forum Posts by: Greg Grant

@Jay Hinrichs ahh, I didn't know that.  I figured I was going to have to incur the capital gains on that $160k. 

My accountant probably would have let me know about it, but I feel better knowing it myself and making sure he catches it.

Thank you.

@Jay Hinrichs Thank you.  Yes, I'm not a fan of the idea of getting mortgage's on both properties, seems like a lot of closing costs and added insurance requirements, when I'd rather have them listed as collateral.  

The personal home (townhome) has been my primary residence for the past 20 years.  Could you elaborate on the "you can sell the personal resi with no tax consequence if you lived there 2 out of last 5 years" statement.  Is that in regards to capital gains?  Fyi, I bought that home for $90k and it's worth roughly $250k now.

@Albert Bui Thank you, that is something I was wondering.  

Because I bought my current home using a No Income Verification loan, and it was relatively easy.  Although that was back in 1997, before the mortgage crisis.   But everything for myself worked out fine obviously.  

I know those are still available and come with a higher interest rate, but I may do some calculating and see exactly how much a higher interest rate (from one of those) would affect me for the time frame I expect to have the mortgage.

@Andrew Postell - lol, no not that part.  I meant after deductions and expenses and the final number on the W2.  Thanks again

@Andrew Postell Oh okay.  I just figured because I didn't have a standard 9-5 job and was self employed with a small W2 (after deductions) that it would make regular lenders nervous/doubtful.  Thanks

@Matt Moylan Thanks, I'll be in touch

So my wife and I currently live in a townhome, and are ready to move into a single family home in the area.

I came across the template so I filled it out. 

Your goals and story: 

I'm basically looking for ideas on how to get a mortgage (meaning what type of financing to look for - Ex. Secured Mortgage Lender?). I'm not looking for an investment loan at a high percentage that I would only have for 6 months to year. I'm looking for a standard 15, 20, 30 year mortgage that is secured by the property that I currently own, for a new personal home. Then when we move and sell our current townhome, I'd use the funds from that sale to make a large payment on the principal of the new loan.

Type of property: Looking for a Single family home, 3/2 2,000 sq ft

Location of property: Broward County FL (zip code 33026)

Purpose of financing: Purchase (new personal home)

Type of financing sought: Not sure of the terminology here.  Looking for a lender that would feel comfortable with the value of property I already own (free and clear)

Current or prior ownership of real estate: Currently own - Current townhome $250-275k (free and clear), Investment commercial warehouse $300k (free and clear), 50% owner in out of state (South Carolina) single family home $275k (free and clear)

Occupancy: Current townhome occupied by us, will list for sale once we move - Investment warehouse is fully rented - Out of State home used as vacation home

Value of property at present and/or your offer price: We're shopping for a home in the $400-425k price range

After repair value: $400-425k

Anticipated or actual appraisal issues: Actual value

Current rents per month: N/A - Will be personal home, not being rented out

Fair market rents per month: N/a

Down payment or equity: We will put at least 20% down, probably $100-150k down payment

Source of down payment funds, if applicable: own funds

Income Source: self-employed (Retail) and more recently landlord

Gross monthly income (optional): $7,668.00

Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc:  Maybe $400/month at the most

FICO: Excellent - 814 (TransUnion) as of 12/18/18, 810 (Equifax) as of 12/18/18 (via Credit Karma)

Credit issues: No credit issues.  I pay off most of my cards used each month to avoid interest.  I have a balance of roughly $11,000 on one card used for work.

Additional details: I came across the newest warehouse (investment) property earlier this year and used most of my free cash for that purchase (June 2018).  So instead of getting the new personal house then, I figured the investment property was a better move at the time.  But being self employed my W2's are not exciting, so I was hoping to find a lender that would see the current free and clear properties as security for the new personal mortgage.  

But I'm just not sure if a conventional lender would be interested in writing a mortgage for me in this situation or if there are lenders that specialize in this type of thing.    What would I even call this type of mortgage/loan?  Would it be considered a secured loan or what kind of lender should I be looking for (terminology wise)?

I've been using Mathieu Accounting for years.  Never had a complaint about him.  He has experience of his own with rental properties.

His name is Eddy and he's in Oakland Park

Yeah that's what I was wondering.  

I figured I would appear as a low risk to a lender, but I've been shocked by crazy stuff before, so part of me was concerned.

After doing some more research, it looks like I need to look into a "secured loan".  Appraently they are considered low risk for lenders and I would think in my situation they would feel pretty darn comfortable that I'm going to be a good gamble.

So my wife and I have decided it's time to upgrade our personal home. And I want to see what kind of options we have in regards to getting a mortgage (haven't applied for one in 20+ years)

We currently live in a Townhouse (it's up to date) ARV is $250k +/- We are looking at Single Family Homes in the area at around $400k. I am self-employed, so I was hoping to get a No Income Verification style loan (at least that's what it was called last time), where they look at your bank statements to make sure you have enough coming in to cover the mortgage, taxes, insurance, etc..

Basic stat's are as follows:

-Income roughly $5,300/mth in deposits (minimum)

-No car loans

-Current townhouse has been paid off for a few years

-Have a couple commercial properties (one in my personal name ($300k ARV) - just purchased in June 2018, the other one ($300k ARV) owned in a corporate name for 3 years). Neither have a mortgage, owned free and clear

-No high credit card balances

-Credit score - TransUnion as of 7/29/18 - is 796

We haven't decided if we will sell the townhouse or keep it and rent it out. I think I want to sell it in order to pay off the new house faster though.

My current plan is to put $150k as a down payment on the new place and have a mortgage for $250k +/-. Then move into new place, list townhouse (hoping it sells within a couple months, if not rent it).

So I figured I would check here to see if the above looks good. I don't see why it wouldn't be appealing to a mortgage company but I'm not in that world, so I don't know. And I don't want to apply to a bunch of places and have them drop my credit score by inquiring too many times.

I'm perfectly comfortable putting the townhouse up as collateral as well as the warehouse (the one owned in my personal name) too. If that is something that needs to be done.

Thoughts, suggestions, ideas?

So my wife and I have decided it's time to upgrade our personal home.  And I want to see what kind of options we have in regards to getting a mortgage (haven't applied for one in 20+ years)

We currently live in a Townhouse (it's up to date) ARV is $250k +/- We are looking at Single Family Homes in the area at around $400k. I am self-employed, so I was hoping to get a No Income Verification style loan (at least that's what it was called last time), where they look at your bank statements to make sure you have enough coming in to cover the mortgage, taxes, insurance, etc..

Basic stat's are as follows:

-Income roughly $5,300/mth in deposits (minimum)

-No car loans

-Current townhouse has been paid off for a few years

-Have a couple commercial properties (one in my personal name - just purchased in June 2018, the other owned in a corporate name for 3 years).  Neither have a mortgage, owned free and clear

-No high credit card balances

-Credit score - TransUnion as of 7/29/18 - is 796

We haven't decided if we will sell the townhouse or keep it and rent it out.  I think I want to sell it in order to pay off the new house faster though. 

My current plan is to put $150k as a down payment on the new place and have a mortgage for $250k +/-.  Then move into new place, list townhouse (hoping it sells within a couple months, if not rent it).

So I figured I would check here to see if the above looks good.  I don't see why it wouldn't be appealing to a mortgage company but I'm not in that world, so I don't know.  And I don't want to apply to a bunch of places and have them drop my credit score by inquiring too many times.

I'm perfectly comfortable putting the townhouse up as collateral as well as the warehouse (the one owned in my personal name) too.  If that is something that needs to be done.

Thoughts, suggestions, ideas?