All Forum Posts by: Mark S.

Freddie Mac has unveiled some great changes for real estate investors which should make it much easier for all of us to expand our real estate portfolio.  Since these loans offer some of the best terms and lowest down payments it is a great change.  A couple of the highlighted changes are:

Multiple Financed Properties: You can now have up to six investment properties through Freddie Mac, previously it was 4.

Rental Income: The requirement for two year history of managing investment properties has been removed.

Rent Loss Insurance: the requirement to have six months worth of rent loss insurance has been removed.

Gift Funds: The requirement that a borrower must contribute 5% of their own funds on Primary Residence with an LTV greater than 80% or greater and where a gift is being used has been removed.

These are just some basic guidelines, make sure you talk to a mortgage professional before you start your next investment!

looking forward to the event. See everyone tonight

Hey Guys,

Thx for all your responses

Yeah I think it provides a great opportunity to start the next chapter of my real estate career. It is amazing the amount of opportunities which seem to open up for you when you go out and look for them. Even as Chris S and Dmitri said there are tons of ways to generate some cash flow in the meantime. The more I learn the more ways I discover.

But as Ryan said a lot of it depends on the job. I guess what is holding up is I love my job and it provides a great income for my family. My wife currently doesn’t work and we have two kids. She is getting her Real Estate License so that will be awesome, she will be an amazing realtor, but it will take some time to get up and running.

It all a balance I guess. It is such a great opportunity though I am hesitant to let it pass me by. I know if I don’t jump at it I will feel let down by myself.

All being said this is an amazing business to be in. I have had my current units for about a year and they are generating some great returns.

I just did the CAP rate calculations and I had a 18 CAP last year between my two units! They are two duplexes which each cash flow at least $250 per door per month. Granted I financed them so when you add in those costs it is not as great as a 18 CAP but it is still an amazing deal.

Thx for all your support, it is amazing to have a network which helps each other so well.

Hey everyone, thx for all the comments. So I wanted to elaborate a bit hear so you have a better understanding of where I am at.

So the plan would be to work on finding some new properties between now and Feb when the package runs out. I feel like I could get at least one more tenant property before my W-2 (and loan ability run out). With the help of my 401k and reserves, Thx Joshua Great idea!

The primary focus then is acquiring a commercial property with some partners. They provide cash and I find, negotiate, and manage the deal for 50/50. The commercial property should cash flow enough to cover some of my previous income. We are targeting some strip malls and small office buildings on the outskirts of the DFW boom.

Like Shawn said it is getting to find deals in DFW itself so we have been focusing on the outskirts of the area which look like the development is headed there way. Path of Progess theory

Then I would need to find some more investors for the next commercial property and raise some capital for the deal. I am thinking of doing the mobile home lease-option deals as well as a bit of whole selling to investors in my professional network.

If I cant generate enough cash flow by late 2015 then I would start looking for a job again and be several properties richer…

That’s the plan in a nutshell at least

Hey everyone!  I wanted to reach out an here your thoughts on my situation.

I have recently been presented with an amazing opportunity and am weighing my choices.  My company has gone through a round of layoffs (financial services industry is always laying off) and I was given the option to take a package.  The package is pretty amazing, basically I am paid from now through February with the same pay, same benefits, same everything....  I lose about $5k in company vested 401k but that is it.

This presents an amazing opportunity to expand my portfolio, I currently own 2 duplexes which are cash flowing very well (about $1k p/m), but this is no where near my monthly expenses.  I believe I can get another couple of units and possibly a larger multi (16 units) by February and then find a job if I have not replaced my income with real estate.  

While it is a great opportunity I am not sure if I really need to quit my job to do these deals and continue growing my portfolio.  I am hesitant to stay at my job because and I know that I will not work as hard at finding new deals if I don't have some pressure to make it happen.  If I have to go out and build an income stream to feed my family I will be very motivated.  I have a wife (worlds hardest working stay at home mom) and two toddlers.

On the other hand though I have a pretty easy job which pays really well and allows me time to work on real estate while I am at work.  I am the only breadwinner in my family and two young kids depend on me.  That being said, I am confident I can get a promotion and a raise to stay with my company...   My boss is very upset at the prospect of me leaving, 

Its a tough call and I am on the fence.... Any thoughts?

Hi Everyone,

I just wanted to send out a reminder about the networking event on Friday.  

Friday May 22   5:30-7:30PM

The pub

(972) 369-1800 || 204 W. Virginia St McKinney, TX 75069

I will post something when I get there so that we can find each other.  

Looking forward to meeting you!

Dana

Hi,

I am a rather new investor with two duplexes in the DFW area. I also have a small photography business which helps reduce my personal taxable income.

The question I have is do I have to be careful about how many expenses I use as deductions to qualify for a new mortgage next year. My lender has told me that I need to show I can pay for 25% of the mortgage for new properties for next year. However, with the amount of money I am spending to get this new business going it greatly reduces my income after deductions and I am worried I may deduct too much so I cannot qualify...

So an example of this is our investment property income. We will make a profit on these this year but next year when we file our tax return we will most likely show no profit due to depreciation. What will the lender look at? The profit before or after depreciation?

Also I got a new job which has a healthy raise. I have a side business which is showing a loss. On our tax return we will show less taxable income after these losses from our side business. Will this keep us from getting a loan on our next property?

Just trying to see how all of this works so we can do what's best for all of our businesses.

Thanks for your help