All Forum Posts by: Jeff Ronningen

@Traci Sherman. Talk to an attorney.

@Josh Taylor. Run.....flee. Lots of legit lenders to choose from. Tell him you’ve chosen to go another route. You make it sound like you’re stuck with him......are you?

@Daniel Infante. You're unlikely to be able to borrow 70-80%, you'll probably have to settle for less. Not leveraging to the max is not a bad idea. It may limit your returns but it also reduces risk. Less leverage leans more toward your dad's way of thinking. You're looking at non-conforming or non-conventional financing. Terms (LTV, interest rate, ARM vs fixed, etc) will not be as good but may be acceptable. I suggest you find a mortgage broker with knowledge of non-conforming and commercial lenders. Some people prefer to go straight to the lender but I've found that a good broker is valuable and earns his/her money. Search for a broker who markets to investors, or ask a realtor if they know such a broker. The broker will collect your information, give you an opinion of the type of lending product you qualify for (or let you know you don't qualify), shop you out to lenders, and present you an offer. This process is slower than conventional lending so be patient.

@Joe A Warner. House hacking with FHA loan is how I started. It's a great strategy. Why not look for a 3 or 4 unit property? Once you buy a 2 unit you're unlikely to be able to make the jump to 3 or 4 units later if you want to do it again. More units has many benefits but also more responsibilities, something to consider.

I believe it will impact any new financing including refinancing.  Talk to a lender.  Maybe you could do the refi first?  

Sounds like you know what to do.  Keep in mind this may hinder your ability to fund new properties for a while.  Lenders like your current salaried position because your income is predictable.  They won't like your new commissioned position with a temporary, smaller salary.  You'll need to establish a couple years of earnings.

@John Heasley. Read Rich Dad Poor Dad. The new job is the right move. Your upside is higher. You’ll learn new skills and you’ll learn you can thrive without the salary safety net. Once you’ve done it and survived it will build confidence, remove fear, and open your eyes to more possibilities.

Sales is a numbers game. More activity, more calls, more contacts leads to more opportunities in the pipeline. More in the pipeline means more comes out the other end as closed business. It requires discipline, planning, determination, and perseverance. Based on the fact that you have rental properties, that you recognize the value in a mentor, and you’re seeking input on BP......my gut tells me you have the right stuff.

@John Voors. Ohio has many good schools, relatively low cost of living, and reasonable housing costs. If you're going to house hack with an FHA loan, why a duplex and not a 4 plex? You need to educate yourself on FHA loan qualifying. If you move and change jobs you may have issues meeting income and job history requirements.

@Paul Schaefer. From a seller’s point of view a cash buyer is an entity who can close quickly with no conditions. No appraisal and no loan to be processed. Short of that there are other things you can do to make yourself more attractive as a buyer. Get a letter from a lender saying you qualify or are pre-screened. If you’re willing to take a risk and you’re confident about the property, waive inspections or have a very short inspection window.

@Chris Rogers. I have one student rental. Pros - strong demand, higher rents (rent by the bedroom), low expectations of painting and improvements for turnovers. Cons - drama, parents, drop outs, trash removal at turnover. In general I think it’s a lucrative market. In November/December you market the property for the next school year starting August. You rent for 12 months, no summer without rent. That’s not how it was decades ago when I was in college but that’s the way it is now.