All Forum Posts by: Mark Smith

I've found a property I would like to purchase, but I'm having a hard time figuring out a way to finance it.  The asking price is $120k, and the problem I'm running into is that I cannot use gifted funds for the down payment on an investment property (this is according to Fannie and Freddie).  I only have about $5k of my own cash, which is why I am in the position of using gifted funds.  It also looks like 25% down would be required.

Ideally I was looking for an 80% LTV fixed 30 year conventional mortgage. Also, I would not be living in the property. Does anyone have any thoughts?

Yes she is a first time home buyer. I guess I don't know all of the options for primary residences. I know of the conventional with 20% down, FHA, USDA... Educate me! :)

I should also mention that the bank has approved my moving out. There is no set term in the mortgage except for a "reasonable length of time." I have their approval.

Because it is treated as an investment property since that is the ultimate goal. We're getting a bit off topic here...

Hahaha no mortgage fraud here, we just don't live together and we don't want to live together in my property. I'm looking to move out and for us to get our own place. Unfortunately selling is not an option, and no I'm not at 20% yet. I didn't think there was a way to do it, so I'm just confirming.

I have one investment property currently that I used an FHA mortgage to acquire. It hasn't quite been a year yet, so I haven't refinanced out of that mortgage yet. My girlfriend and I are looking for our first house, but we only have about $20k cash. I would love to be able to use FHA again, and I'm wondering if she were to get approved, would the bank allow me to be on the mortgage (for the sake of them considering my additional income) even though I'm already using an FHA? I know you can only have one at a time, I just didn't know if this would be considered a unique situation. I would refinance out of my FHA, but there isn't much equity since it has only been about 10 months.

Haha @Jim C. eating lead chips certainly is not encouraged!  But I'm afraid that if I tell them not to try it, it might just create curiosity and they'll go for it!  Sort of a reverse psychology situation.  I do agree with you and @Andreas W. that it would be wise to carry an umbrella policy.  I haven't ruled it out, it just hasn't happened yet.

Hi, @Lydia Lee.  I purchased my first property last June and have yet to form any sort of entity.  I currently am only covered by a landlord policy.  I don't have much for assets, and my property is mortgaged to the hills, so even if I were sued for some reason there isn't very much for them to take from me!  I'll begin forming LLCs once I have one or two more properties.

This is awesome! I started when I was 26 and wish I had started right out of high school. I'm jealous that your son has started at 12! You have really set him up for a killer future and I look forward to being able to do this with my kids in the future.

Hello all!

I am in the beginning stages of forming a partnership with another BP member, so I'm looking for some advice or suggestions on how to structure the deal.  I would only be bringing 10-25% of the up front cash to the table, however I would be doing 100% of the managing.  How do you put a value on the management portion?  I know this can vary depending on the demands of a particular property, but I'm just looking for general thoughts on this.  I would be collecting rent, handling the accounting, finding tenants when necessary, and dealing with any repairs or tenant issues that arise.  How about suggestions on how to dissolve the partnership down the road?  These are things we want to have lined up from the get go so we both understand the agreement.  Thank you for any advice!