All Forum Posts by: Steven Berro

Hi Nghi.  So interesting to hear how you jumped into real estate only to find you needed the full time employment for borrowing purposes. Who are the asset based lenders? Are they similar to private money or a portfolio lender? Will an asset based lender require a seasoning period before making a loan on a performing property?  

I've talked to a few portfolio lenders and they want to see proof of regular income.

Thanks for the reply.

Steve

Hi Chris.  Thanks for the info.  Yes, everyone I have spoken with understands the reason for my employment gap.  Your right about the culture of today. Most people have a positive response when I tell them what I'm currently doing. Unfortunately I did not think far enough ahead on how my current situation would impact my ability to get a loan.  I just presumed that my income from the sale of the business would qualify.  Lesson learned.  I'll do as you suggested and keep making phone calls.

Hey Ray.  I just got up here to Spokane from So. Cal. about 9 months ago.  It was a great move. We love it. No investor advice from me, just wanted to chime in on how happy we are up here.

Chris and Melody.  I'm just starting to figure out the investment landscape up here.  I'd love to sit down with you and talk shop.  

Have a great weekend everyone!

Hey BP'ers,

I'll try to be as succinct as possible. Question: How long do I need to be employed in order for banks and/or credit unions to be able to use my income towards the purchase of a buy and hold SFR/MFR investment property?

Back story:  Sold a business. Moved out of state. Receiving payments from sale of  the business. Payments will continue for another 14 months.  Lenders want 3 years of income from the sale to qualify as income. So, non of the business proceeds qualify as income.

I'm currently a stay at home, home schooling dad. (And I thought owning a business was stressful. Can I fire my children?)  My wife works full time.  Our credit scores are around 730.  We have enough cash for 20-25% down payment.

I am willing to work in the same industry I was in for the past 18 years if that's what the lenders want to see.

The sticking point in obtaining a loan is our debt to income ratio.  I've met with banks, local credit unions, and brokers. Same response from all.  The loan will be to purchase my first income property.  I don't want to get stuck with a private or hard money loan without an exit strategy.  So, I need to able able to qualify for a traditional loan.

I know there are other financing strategies, such as seller financing that i could potentially use.  I'm looking for some answers to my question but also a view from the outside looking in.  Am I missing other options? 

Thanks for the help!

Steve 

100% hire a professional. Local recommendations and locally owned if possible. Pestworld.org is the national pest control association web site. It can guide you to companies in your area. You want a thorough inspection and treatment done. Tenants usually introduce the bed bugs to the unit from clothes or furniture like you mentioned. Guests can also bring them in. Just removing the tenant and his belongings and spraying baseboards is not going to solve the problem. Bedbugs hide everywhere and moving furniture can cause infestation to spread. Thus back to my original point. Hire a professional. Good luck!

There's a meet up tomorrow at 6 at the Keller Williams building on South Stevens St.

Congrats Jenny!

My wife and I family moved our family from So. Cal. to Spokane about nine months ago.  Absolutely love it.  You are in a really good position with that amount of cash.  Take advantage of Bigger Pockets and start developing relationships up here.  I'm a complete newby and have learned quite a lot simply by reaching out to experienced investors up here.

All the best,

Steve

I was in pest control for 18 years. Many, many people live like that. The absolute worst are the hoarders. I have actually charged owners to remove junk just so I could do a proper treatment.

I have the same exact question. If self managed will that pierce the corporate veil? Any tax benefits?

Both bedbugs and German roaches are different than other pests in that they are almost always brought into the home instead of "invading" . Unless of course the infestations are severe. Not sure on the law, but I'd be careful with these tenants. More than likely it will continue to be a problem due to their decision to live in filth. If at all possible do not allow them to bring ANY used furniture into the unit. That's how most bedbugs get established. You could bleed a lot of money just in pest control costs alone. Good luck!