All Forum Posts by: Jonathan Farber

Is it possible to pay more to close on a property than what is shown on your HUD 1 doc? I just got a property under contract in New York. I am reviewing the HUD 1 Doc and the total "cash to close" figure is lower than what was actually needed to financially close on the property.

What I am stuck on is the fact that the HUD shows all the charges but it seems lower. The figures are:

Earnest money: 15K

Title Insurance / recording/Tax fees: 15K

Cash to close: 75K

Total 105K

But the bottom line of the HUD in area of "cash at settlement from borrower" is

99K

Am I just missing something here? Or who would be someone who handles these regularly to do a walk through?

Thank you!

0 Votes

@Brian Wall sounds like an awesome deal

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@Joseph Salegna will do Joseph!

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Any Long Islanders out there?!?! Looking to network or discuss strategy over coffee? A little about myself / current strategy - I am looking for a new primary residence where I can do a 1-2 year rehab and potentially flip! Any advice/recommendations/reasons not to do it?

Thanks!

@Brad Farber

2 Votes

Originally posted by @Basit Siddiqi:

@Jonathan Farber

You are required to report your rental activities on your tax return.
The return will report rental income less expenses(mortgage interest, insurance, real estate taxes, repairs, depreciation, etc).

There are certain elections that you can make that can allow you to speed up or report expenses over a period of time. With that said - you shouldn't underreport an expense for your return to look better from a lender's perspective.

While many rental activities reported on tax returns show a tax loss - the lenders should be looking at it carefully to see what expenses can be removed from a lender's perspective so you can have a lower DTI Ratio.

Examples - Many lenders add back depreciation
Also - if you had a year with extensive repairs(roof, water heater, etc) - you can argue with the lender that normally repairs should be $1000 a year instead of the $5000 that we had last year.
The lender may be able to addback $4,000 in this case to your income for DTI purposes.

Some of the costs were larger unexpected Capex expenses. If the banks are shown the receipts for these do you think that will change the conversation?

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Do most landlords show losses on their rentals?

Reason asking I am looking for another loan, and while the rental losses I showed in 2017 are minor, they are hurting my lending ability.

Granted, it was nice to receive a 'return' but wondering if I should file differently for 2018. Has anyone dealt with this?

@Brad Farber @Jay Dertzbaugh

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@William Jenkins Thanks!

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@Dave Ramirez @Andrew LeBaron Thanks guys! I will check them out and circle back

1 Vote

@William Jenkins very Interesting business, how do you find towers or land for towers?

0 Votes

@Dan Carver where did you find yours?

0 Votes

All Forum Posts by: Jonathan Farber

Jonathan Farber has started 43 posts and replied 203 times.

Post: Closing costs on property

Post: Open Permits & Code Violations

Post: Long Island - Nassau County

Post: Long Island - Nassau County

Post: To show rental profits on taxes or not?

Post: To show rental profits on taxes or not?

Post: Thoughts on buying Cell Towers...

Post: Do you use a Virtual Assistant for marketing, admin, etc. tasks?

Post: Thoughts on buying Cell Towers...

Post: Do you use a Virtual Assistant for marketing, admin, etc. tasks?