All Forum Posts by: Lars Henrik

I just realized that whatever job I get in the near term, it will be commission based, either 60% base, 40% commission, or relatively close to 50/50. Or it will be 100% commission based. 

I just talked to a banker with mortgage experience and with any form of commision income, they're going to need the two years W-2 either way. So perhaps my question was moot.

@Shaun Weekes and @James Wise

Thanks Shaun and James. 

I definitely don't want to wait for two years! 

What are your thoughts on alternative financing? Hard Money or Private Money Lender, then let the property season for six months to a year, then refinance to conventional loan. Something like that? 

Other ideas I have are partnering. Have you seen some ways people in my situation get financing and make purchases with less than two years 100% commission income? 

Thanks so much for your previous replies. 2 years.. I'm too eager to get started. 

What a jerk I am,  I never replied to anyone here. had a lot going on at the time, and was starting a new business. Thank you for all your input! 

 Long story short, I held onto the house, @Vincent Grant, I too would have regretted selling it. It's in a prime location in Silicon Valley. I will take a look at refinancing soon. 

@Walter W. I ended up AirBNBing it for 10 months.. some good months, but my townhouse neighbors tired of it. 

@Laura Williams, I now have long term tenants again and am finally cash flow positive by a small margin, nothing i would brag about on BP, but I'm getting 16% more rent than I was 3 years ago. 

I have an opportunity to join a business on a 100% commission. I know I'd do well, and make at least six figures. My main concern is getting loans for rental properties. I plan to do buy and hold cash flow, maybe even  turnkey. But that's beside the point for now. 

Is anyone else out there on a 100% commission and getting conventional loans? What hurdles did you have to overcome? 

From what I've read is needing at least two years verifiable income if it's 100% commission. 

Thanks, 

Lars 

Still curious how it all resolved. Best of luck. 

@Ryan H, Am curious to find out what happened after talking to your RE lawyer. You seem like a good guy, and sometimes us good guys can't fathom such behavior as tenants moving back in unannounced. Trust no one I guess  :)   Best of luck! 

Thanks @Tim Ehlers!

Original purchase price was $530k. I'm going through your numbers to get a better understanding. 

Thanks,

Lars

Thank you EVERYONE for your replies... I'm very appreciative of your insight.

Hi @Tim Ehlers,

Thanks so much..

1. How much negative cash flow each month currently?

 - approximately -$192.

2. How much cash do you have invested into the property (down payment, major repairs or upgrades) 

- 75-80k. - Down Payment - 53k plus upgrades/repairs  approximately 27k. -

3. How long have you owned it?

- Since 2008, Started renting it out in 2013.

4. What is your monthly PITI and loan percentage rate?

- $3,192 (includes mortgage, HOA fees, insurance, Prop taxes, trash/recycling) - I was getting 3k a month in rent. 

- 30 year fixed rate loan at 4.625% (refi'd in 2013) and a $37k HELOC at 4.9% (Got a HELOC instead of PMI when buying in 2008, we put down ten percent, then the HELOC covered the rest)

5. What is your short term and long term goal? Immediate cash flow to quit your job, long term equity to increase your net worth?

- Short term goal is to start getting into cash flow positive  RE investments.  Earn enough to not need a full time job eventually.

- More info - It's in a highly desirable neighborhood of Willow Glen, an upper middle class area of San Jose.  This is the emotional part where I want to keep it, hence the quandary. 

Jeff Pollack thanks for the reply. Yes I lived there 3 out of the past 5 years until I decided to become a landlord and move to SF. I just joined your meetup group as well so I'm sure we'll meet soon enough. Kyle Penland l thanks for your reply as well. I

Hi All,

I own a rental townhome in San Jose, currently vacant as I was in the process of selling it. My tenants moved out today (6/15/2015). The market is super hot so I should get at least 20% over what i paid for it. My plan is to invest in better cash flowing properties with the proceeds, I was not cash flow positive on this house. (I live in an apt in SF right now).

I was going full speed ahead to sell it, but then I thought why not continue renting it out, and get a line of credit and invest the proceeds into cash flow positive investments?

The numbers:

- Owe 418k on the rental house (it used to be my primary home)

- Market value is probably 650k (my neighbor's house, exactly the same sold for close to that amount)

My thoughts are - getting a line of credit and using that to fund new investments will just lead to lower cash flow per month as I'd be paying interest on my line of credit and and any other loans.

I also saw this post and it seemed like more of a hassle, and higher interest on the rental equity line of credit versus a primary residence.

http://www.biggerpockets.com/forums/50/topics/1133...

Your thoughts? What other numbers/factors do you recommend I look into?

Thanks!

Lars