All Forum Posts by: Brian Larson

I did some searched and did not find this particular answer. I was wondering how others have gotten around this particular problem.

I am nearing 10 loans under my name. Wife has 0 as we strategically did not put her on any and she was stay at home mom for a few years so no benefit to having her on.

Now I want to get going with her buying props under her name (another set of 10 as many on these forums have talked about).

All good so far, yes? Well no. She is a teacher and thus doesn't make huge money. Let's just call it $3k/month for illustrative purposes. Because she is on title of our primary residence (not loan, title/taxes) my lender is saying the underwriter will count our primary mortgage against her DTI... seriously.

Well, I live in SoCal so my mortgage (which I cover with MY salary) is well above $2500 and thus kills DTI.

Has anyone been able to creatively get around this? It seems like my wife will not be able to qualify for a loan on her own due to primary residence even though she has 800 credit scores, income, zero debts in her name (car and all houses in mine).

Thoughts? Until yesterday I was feeling pretty good at what we have done... now feeling like seller financing, straight cash and portfolio are the only options.

Thanks

b

Quick update. interior is done. Cleaning crew coming in today while the gravel is being dumped this afternoon. We should have it spread by EOD tomorrow, weather permitting.

SPDS and listing agreement complete. Agent should be out Friday AM for pics and listed.

My two big concerns on this place are 1. carport/garage and 2. timing (3 weekends before Christmas/new years). I am hoping I am able to move it even with these limitations.

The place looks amazing. We have definitely helped the neighborhood out with this house being updated to current standards/finishes.

@Jerry K. The flip is going very well. @Kyle Larson 

overestimated some time in a few places but underestimated in others so it has evened out. We will likely be on the market about 3 days after he thought. Not bad for flip #2 and first real rehab with walls coming down, etch

In regards to budget, Kyle has been pretty spot on. If anything he was under so we went ahead and upgraded appliance, master bath and the landscaping for curb appeal. I am hoping that helps move it quick and at the price point we expect.

Thanks
brian

Sorry for the slow updates on this. We should have the renovation done midweek with it listed by Friday per last time I spoke with @Kyle Larson . I will get some photos up soon and hopefully will have some updates around movement... anxious to get it off the books :)

Hey Shane,

I have never read any RE only negotiation books but have been in sales for a while and some of these books have been good. The main thing you will learn is that preparation is huge.

Know what your objective is (buy the house at a certain price, get an option to purchase, etc), List the issues that will prevent that (seller wants too much money), List the motivation for them to do what you want (divorce, inherited, etch), have a list of questions for them, question that they might bring up and then a list how you will address any of their concerns.

Sorry... end of rant. Here are the books

Challenger Sale - Dixon/Adamson

Crucial Conversation - Patterson/Granny

Solution Selling - Bosworth (really helps you identify type and extent of customers pain)

I hope that helps

brian

wow, what a cool project. If you don't mind me asking, what are your estimated rehab costs and timeline?

Thanks

brian

Question for you Daniel. Do you have a list of lenders offering this? I am wondering if you are using local credit unions or national banks (US Bank, Wells, etc)

Thanks!

Brian

Ok, sorry on the delay. Here are the original photos of this place. Rehab is currently in progress but is mostly demo work at this point. I will get some updated photos from @Kyle Larson and post soon.

Some parts of the house are nice as there was a rehab in progress from who knows when. Lots of unfinished and untouched areas though.

Outside

Beetlejuice, Beetlejuice, Beetlejuice!

Kitchen is in decent shape

Funky Bath

Funky Fireplace

Rehab photos and update on schedule/timeline coming soon...

I agree with others here. You are probably feeling worse than you actually are.

Question: you purchased with cash and are renovating. Did you borrow the money?

The reason I ask is this. If its just your cash then your holding costs are minimal. Outside of opportunity cost you are in very little. Even if you have to sell just above what you put into it you are ok financially. As @Christine P. said, you simply paid for great experience.

With that said, sure you want your money back ASAP and an overrun is brutal but I think it looks much worse from your view since you are in it than it actually is. Numbers you provided do not indicate major problems.

Good luck man and please keep us posted on how this turns out. Flipping this to a rental may not be a bad idea. Heck, I may want to buy it :)

Brian

oh and thanks @Nhi Nguyen for the kind words.