All Forum Posts by: Alex E.

Great thanks!

So basically after one year I can rent out the entire property and move out to a different residence?

That mortgage broker had me all confused.

I want to know for how long are you required to have a property as a primary residence if it is under a FHA mortgage loan, and assuming that it is a multi-family.

I heard that after one year, you can move out of the property and rent it out to tenants, is this true? I heard some conflicting information from a mortgage broker at a presentation. Even if you move out after one year is the property still considered to be your primary residence?

Maybe I am confusing the terms "primary residence" and "owner occupancy", or are these terms speaking about the same thing?

I would like to find a duplex or triplex with a FHA mortgage, but then I discovered that at my current gross income I won't be able to meet the debt-to-income ratios used to qualify for an FHA loan. The mortgage payments on a duplex/triplex are too high for my income level.

But, will a lender consider the rent that I can potentially earn from a duplex or triplex, and then use it as part of their debt-to-income calculations? If so, I can have a better ratio.

I am from Massachusetts.

Hi,

I just found out that part of the requirement to get a commercial loan for an apartment complex is to have a minimum of 5 years experience managing a large multi-family property, or something similar. Is this requirement set in stone, or would lenders at a bank ignore this requirement? I prefer to get a loan from a bank, not from a hard money lender.

I don't have experience managing a property, but my investing partner has some experience managing a 2 bedroom house that he rents.

The reason I want a Fannie Mae mortgage is to be able to pay only 5% down payment. So, do I tell the lender I am looking for Fannie Mae, or do I have to keep on looking for a lender that will allow me to put a 5% down payment?

Where do you go to get a fannie mae mortgage? Do you just have to call a bunch of brokers by trial and error and see if they sell fannie mae mortgages?

It's not like FHA where you get directed to a site that tells you who to contact and start the loan process.

Hi everyone,

I have a friend who is willing to cover the downpayment for a multi-family or apartment building, which is around 20% of the loan amount. I am also planning to apply for a commercial loan since a lender is more concerned about how much income the property will generate than one's credit history, and since I don't have a steady work history.

I am planning to pay my friend back with interest for the downpayment he is going to cover. I plan to pay him back with the income from the property.

So I have two questions:

Will a lender allow me to have my friend cover the downpayment in addition to me paying back my friend with interest?

And with a commerical loan, it is more about how much income the property generates rather than my "ability to pay" and my work history?

Thanks.

Yeah, when someone asked me at a networking event about how I created my letters, I tried not to give out too much information, so afterwards I felt pretty bad about it but at the same time I felt like I gave away my "secrets", but after reading everyone's comments I feel more confident that I shouldn't hide everything.

Hi everyone,

I have been thinking about this for some time. The culture in real estate investing seems that everyone is out to help each other succeed.

But with wholesaling whenever someone asks me how I create my letters I feel as though I should not tell them because if they have the same success rate as I do, then all the houses around the neighborhood will be flooded with letters asking if they want to sell their house.

In the short term I might be helping out a fellow investor, but in the long run the market is going to get saturated and everyone is going to start finding less deals because the competition will be so high. Every house will be getting like a ton of letters from numerous investors and no one will be getting any deals.

Anyone have a different perspective?

Thanks.