All Forum Posts by: John Leake

I do believe that provisions can be added into a contract for a loan that allows them to do this you'll want to check your paperwork to see if what you signed also gave them permission moving forward. I also think FCRA has the provision in there to review an account you already have opened. I would be a little bothered as well by the inquiry especially with the information you have provided that everything is current and payments are always early. I would be interested to hear a lender or lawyer weigh in on this.

Nice to have you here as part of the community. The cost or the property shouldn't be as relevant if it cashflows and you can show that on your taxes for a year or two. I would look for both deals and find the one that makes the most sense financially and make your decision based on that. Good deals can be hard to find so while a little bit narrower of a focus is good the difference between a 2 and 3 unit isn't enough to exclude one or the other. Hope my perspective helps good luck to you!

On the posts I have been seeing I have only seen other BP members all of whom seem to be active members replying to and adding insight to the posts. I cant speak for anyone else experiences but I'm not seeing the "paid spots" in place of the others yet. Glad to hear you have had some positive results from being active on here though!

Welcome to Bigger Pockets, this is definitely the place for all things real estate! I hope you find a good boots on the ground person here to help get you moving. Good luck

@Michael Venneman I like where your heads at just make sure you do your due diligence on the lease you are signing so you don't get yourself in trouble.

@Greg Scott That is a good insight. I was looking at it from a tenant perspective and how often that threat is thrown around. I also feel most lawyers would file a suit as long as the person they represent is willing to pay for it, though as you mentioned them looking at a larger payout would  be an incentive. I have debt on everything because I believe its the best way to grow a portfolio and later 1031 into a larger asset without all of that money coming out of my pocket.

We had this happen recently, in our case the family paid for the next month and moved the belongings out of the unit during that time. They did not sign anything but neither were they on the lease to be in a position to. I turned over the unit and re-rented it as the party I had the contract with was now deceased. It was not an extravagant turn over just had good communication with the family on what they needed and then we in return to facilitate that.

@Mary E Zimmer I also don't see someone looking to sue you caring one way or another if you have debt on your property. I would maintain a good liability policy and if a good opportunity comes along pull money out of the investment to fund the next deal! Good luck.

In my experience they want to see your financial position through your tax return. Your debt to income ratio, net income, and down payment money. Anyone else you are bringing in would be evaluated the same. I'm not sure it makes a big difference about your ownership structure so long as it doesn't negatively impact the other numbers.

You can pull capital out based on the appraised value of the property relatively quickly. If you are wanting to pull out based on the cashflow you will have to have some supportive history of the stabilized rental income. It may cost you some in fees but I would likely take a loan and pull out based on the property value and then refinance it again once you hit stabilization. Different banks may require different seasoning periods I was advised a year on my commercial property.