All Forum Posts by: Frank Jiang

You want to google "Subject To".  How you typically get around the bank due on sale clause is that the actual liability on the mortgage is not transferred over to you, it remains with the seller.  If you suddenly fail to pay the loan, it is the seller, not you, that is SOL.  It's a "creative" way to get into real estate with minimal capital input, but an unsophisticated investor can get into serious problems trying to pay a sub 2 with a tenant.

Your premise is ok, but your conclusions are pretty far off.  Dave is correct that investors would prefer to see companies with focus as opposed to companies that generate multiple different streams of income.  The very simple reason for this is that individual investors can choose to diversify on their own.  They can buy stock in a company that is great at real estate and then stock in an insurance company and then stock in a finance company.  Each of these companies will likely be much stronger than a company that does real estate and finance and insurance.  A company that stretches too far into too many products loses overall competitiveness.  Just look at companies like GE.

If the lender is only counting a percentage of the rental income of the first two houses, this is an overlay or a qualification requirement specified by that specific lender.  It is entirely possible to find a lender that does not have that specific overlay and use them to fund instead.

It's sad that money taken from clients is now being used to suppress their stories.

Here you go 

https://www.mrmoneymustache.com/2018/10/05/the-fire-movement/

At the end of the day, this sort of asset is equivalent to an RV or the actual structure of a mobile home, especially with the ordinance requiring utility hookups.  The value of the structure itself likely has nowhere to go but down.  From a commercial standpoint, I would guess that we would see smart players trying to create the equivalent of a mobile home park: charging for the lot and passing on the risk of the structure itself to the homeowner.

Here's a table of the number of years, given a rate of return you need to turn $1M to $5M.  To achieve your goal of 1-> 5 in 3 years, you need to achieve roughly 71% return on your investment every year for the next 3 years.

Here is a handbook for handling abandoned property in the state of Georgia.

OP should:

- Inventory all abandoned property (description, photos, etc).

- Move these items to storage for one month

- Notify tenant that items will be disposed of after one month

- Begin the turnover process after removal of the tenant's personal belongings

Do not commit mortgage fraud.  It doesn't really matter what your lender says regarding the matter.  "But my lender said you wouldn't check" isn't going to hold any water when they're sentencing you to jail.  Plus it's just unethical, plain and simple.  I would frankly work with a different lender if that's the counsel I received.

You can likely get around this with a 5% conventional loan.  It's a minimal amount more for down payment and gets around your issues.

Now that being said, the big problem with condos typically come with the HOA. In addition to the fees rising over time and thus depressing both your cashflow and your total appreciation potential, you need to comb through the CCRs and the financial operating statements to make sure there are no whammies coming. If the association is underaccrued for a big expense, you will end up staring at a 5 figure plus one time assessment when they need to replace the roofs or whatever.